Oil bond boost for BPCL Q4 bottom line

Oil bonds issued by the government have helped BPCL to bounce back into the black during the fourth quarter after posting losses for the first three quarters.

For the quarter ended 31 March 2006, net profits of BPCL has jumped 409 per cent to Rs 1,788.3 crore from Rs 351.4 crore during the previous year quarter. Total revenues increased 33.02 per cent to Rs 21,430 crore from Rs 16,110.8 crore.

The company booked most of the oil bonds issued by the government during the quarter, without which the bottom line would have been deep in the red. Other income declined 22 per cent to Rs 111.2 crore from Rs 142.7 crore.

Interest costs increased 81.73 per cent during the quarter while depreciation charges went up by 39.31 per cent.

For the full year 2005-06, standalone net profits declined 86.56 per cent to Rs 129.8 crore from Rs 965.8 crore for the previous year. Standalone revenues increased 22.54 per cent to Rs 72,825.9 crore from Rs 59,428.4 crore.

Gross refining margins declined substantially during the year to $1.64 per barrel from $4.56 per barrel during the previous year.

During the year the company received oil bonds worth Rs 2,163.12 crore from the government to compensate for the under recovery in retail fuel prices. BPCL also received Rs 3,581.9 crore as subsidy sharing from upstream companies like ONGC and Gail India and another Rs 346.79 crore from refining companies.

Consolidated net profits for the year 2005-06 declined 68.07 per cent to Rs 492.3 crore from Rs 1,542 crore for the previous year. Consolidated revenues rose 20.26 per cent to Rs 77,897 crore from Rs 64,775.3 crore.