BPCL’s profit has increased by more than 90 percent in the third quarter. Whereas the revenue has increased by 10 percent. There has also been improvement in margins and growth in GRM. However, all these figures have been less than expected. In the third quarter, the company’s GRMs (gross refining margin) increased from $ 4.40 per barrel to $ 5.60 per barrel. At the same time, LPG under recovery has increased from Rs 4,120 crore to Rs 7,229 crore. The company has entered into JV with Praj Industries. This agreement has been made for the compressed bio gas plant. Apart from this, the company’s board has approved investment in Nunukan block. There will be an investment of $211 million in this block. BPCL’s stake in Nunukan block is 16.23 percent.
Talking about the results, the company’s Chairman and Managing Director G Krishnakumar said there are opportunities in petrochemicals, consumer retail and green energy space. Bina Refinery is expected to be completed on time. The impact of Russian sanctions is being assessed. There will be a slight premium on crude oil due to Russian sanctions. In the coming days, a source of Saudi and American crude oil will have to be found. A slight premium will have to be paid on crude oil in the range of $2-3 per barrel.
He further said that 35 percent of our crude oil mix was from Russia. Despite instability and refinery closures, there has been improvement in GRM. The fiscal year should end with a GRM of $6.50 per barrel. LPG under-recovery is expected to be compensated by March. Not sure whether the entire LPG under-recovery will be compensated.
G Krishnakumar further said that the IPO of Maha Natural Gas should be brought in 4-5 months. The Bina refinery expansion is expected to be completed on time. The new unit at Kochi refinery will now be completed by April 2027 instead of July 2027. Marketing business should perform well going forward.