Bharat Petroleum’s Q2 profit more than doubles YoY fuelled with better refining margins

State-owned refiner Bharat Petroleum’s net profit rose more than two and half times, or by 168.8%, on a year-over-year basis to ₹6,442.53 crore in the second quarter fuelled by better refining margins. Gross refining margins, which is the key indicator for profitability, increased approximately 27% during the first half of the ongoing financial year to $7.77 for every barrel compared to the corresponding period last year.

Additionally, the refiner’s revenue also increased 3.3% YoY in the September-end quarter to ₹1.22 lakh crore. This was driven by a marginal increase in domestic market sales which rose about 2.3% during the mentioned period. Although, the company’s refining throughput slipped 4.5%.

Bharat Petroleum also announced an interim dividend of ₹7.5 per equity share. It would be paid to eligible shareholders by November 29.

The financial results largely mirror that of refining peers Indian Oil and Hindustan Petroleum. Both have recorded an increase in their GRMs and profitability in the September-end quarter.

Scrips of Bharat Petroleum closed 0.24% lower at ₹356.80 apiece on the BSE, and 0.39% lower at ₹356.20 apiece on the NSE.