Tuesday, November 1, 2011

BPCL Q2 net loss rises, stock down 6%

Bharat Petroleum ( BPCL ) has reported a net loss at Rs 3,229 crore for the July-Sept quarter, up 51% year-on-year mainly on the back of higher under-recoveries. Net sales of the company, however, grew 19% at Rs 42,282.

Shares of the company were down 6% at 618.60 on the Bombay Stock Exchange at 14.00 hours.

"The results for the quarter has been adversely affected due to impact on account of high crude oil and product prices which could not be fully passed on to consumers," the company said in a note.

Meanwhile, state-run oil retailers including BPCL lost Rs 64,900 croreon selling diesel, domestic LPG and kerosene at government-controlled rates that are way below the cost of production.

Of this, Rs 43,526 crore pertains to the first quarter ending June 30 and the remaining Rs 21,374 crore is for the July-September quarter.

BPCL is losing Rs 7.06 per litre on diesel, Rs 25.90 per litre on kerosene sold through the public distribution system (PDS) and Rs 270.50 per 14.2-kg LPG cylinder supplied to domestic households for cooking purposes.

"The oil marketing companies are currently incurring a daily under-recovery (revenue loss) of about Rs 272 crore on sales of diesel, PDS kerosene and domestic LPG," a recent statement issued by the petroleum ministry said.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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