Revenue for the quarter increased by 27.5% on a sequential basis to ₹1.51 lakh crore from ₹1.19 lakh crore in March.
Earnings Before Interest, Tax Depreciation and Amortisation (EBITDA) for the quarter stood at a negative ₹4,077 crore, compared to an EBITDA profit of ₹10,060 crore during the March quarter.Crude oil prices had surged to as high as $125 a barrel in April as hostilities in West Asia had escalated significantly. Prices then came off the highs in June, after both countries signed an MoU to initiate a ceasefire and then implement the contours of the MoU.
Prices are on the rise yet again after renewed hostilities in the region with Brent back at the $95 a barrel mark. Goldman Sachs has warned that the prices may rise back to $120 a barrel by the fourth quarter of the year, in case the situation drags on for a prolonged period of time.
Higher oil prices are negative for oil marketing companies like BPCL as they inflate the input costs and in case the pump prices do not increase in proportion, it will shrink their marketing margins and impact their profitability.
Shares of BPCL are off the lows of the day, currently trading 0.5% lower at ₹317.65. The stock is down 17% so far this year.
