Bharat Petroleum Corp Limited (BPCL), a prominent state-owned oil and gas enterprise, has revealed a significant 8% decline in its consolidated net profit for the last quarter of FY 2024-25. The profit dropped to ₹4,391.83 crore, down from ₹4,789.57 crore during the same period last year. This reduction is primarily linked to lower gross refining margins and under recoveries from its liquefied petroleum gas (LPG) sales.

Declining Gross Refining Margins

For the fiscal year ending March 31, 2025, BPCL reported an average gross refining margin (GRM) of $6.82 per barrel, a stark decrease from $14.14 per barrel in FY 2024. However, when compared to the previous quarter, the net profit saw a 15.4% increase, rising from ₹3,805.94 crore in Q3 FY25. This improvement can be attributed to better refining and marketing margins, robust sales growth, and operational efficiencies.

• Current Quarter GRM: $9.20/bbl
• Previous Quarter GRM: $5.60/bbl

Revenue and Profit Trends

BPCL’s revenue from operations during the latest quarter slipped by 4% year-on-year to ₹1.27 lakh crore. For the entire fiscal year of 2024-25, the company’s net profit was halved, reaching ₹13,336.55 crore, compared to ₹26,858.84 crore in FY 2024.

• Operating Margin:
  • Q4 FY25: 4.13%
  • Q4 FY24: 5.26%
  • FY25: 3.27%
  • FY24: 6.87%

Sales and Throughput Growth

Despite the profit decline, BPCL’s domestic market sales showed a modest growth of 1.8%, totaling 13.42 million tonnes in Q4 FY25, up from 13.18 million tonnes in Q4 FY24. The refinery throughput also saw an increase, reaching 10.58 million tonnes, compared to 10.36 million tonnes in the same quarter last year. The company achieved a record throughput of 40.51 million tonnes for the fiscal year, surpassing 39.93 million tonnes in FY 2024.

Dividend Announcement and Future Plans

The Board of Directors of BPCL has proposed a final dividend of ₹5 per equity share with a face value of ₹10 each. Looking ahead, BPCL aims to allocate approximately ₹19,000 crore for capital expenditure in 2025-26. Additionally, the company is working to increase its petrochemical sector contribution from 2% to 8% of its overall portfolio by 2028-29.

Embracing Renewable Energy

In a strategic move towards sustainability, BPCL recently formed a joint venture with Sembcorp to explore opportunities in renewable energy and green hydrogen projects throughout India. This partnership will also focus on green ammonia production, emissions reduction for port operations, and other innovative green fuel technologies.

As BPCL navigates the complexities of the oil and gas sector, its commitment to operational excellence and sustainable practices positions it for future growth and resilience in a competitive market.