The Bharat Petroleum Corporation Ltd (BPCL) stock has had a subdued 2017 so far while their earnings in Q1 had no fireworks either.
CNBC-TV18’s Yash Jain caught up with D Rajkumar, CMD of BPCL and asked him what the reasons behind the disappointments in the first quarter were.
Q1 was soft because of inventory losses & expansion of Kochi refinery. We are expecting to do very well going forward given Integrated Refinery Expansion Project (IREP) is commissioned, he said.
He expects Q2 gross refining margin (GRMs) in the range of USD 6.50-7 per barrel. We are working as a company to try and see that we achieve profit after tax (PAT) of somewhere around Rs 10,000 crore, he added
Completed Kochi IREP project at a cost of Rs 16,000 crore and this expansion will take refining capacity to 15.5 metric tonne from 9 metric tonne, said Rajkumar.
Once the IREP is fully commissioned and stabilised, we are looking at anywhere between USD 1.50 per barrel and USD 2 per barrel improvement in the GRMs, he further mentioned.