Unlike peers Indian Oil and HPCL, public sector oil refiner and marketer BPCL posted healthy profit in the September quarter. While the company’s revenue fell 25 per cent year-on-year due to the decline in refined product prices, profit more than doubled to ₹1,018 crore.
A few factors helped. One, gross refining margin improved to $6.2 a barrel during April-September 2015 from $2.36 in the year-ago period. Next, sales volumes in the September quarter grew 5 per cent Y-o-Y. Besides, the company got fully compensated for under-recoveries in contrast to the ₹503 crore it had to bear during April-September 2014.
Finally, the company seems to have controlled its inventory losses, arising from the decline in crude oil price, better than peers.