BPCL GRMs at US$9.7/bbl in Q3FY22

News: BPCL’s topline was up 16.6% QoQ to Rs.118536.8 crore in Q3FY22. Marketing sales were at 11.2 MMT, up 12.5% QoQ. Crude throughput was 8 MMT, up 11% QoQ while GRM stood at US$ 9.7/bbl. EBITDA at Rs.4213 crore, down 5.9% QoQ leading to PAT of Rs.2462.4 crore, down 8.6% QoQ.

Views: BPCL earnings were lower than estimate on account of marketing segment as the company reported marketing inventory loss of | 1423 crore. Stability in GRMs and passing on higher retail prices of Petrol & Diesel to customers (due to higher crude oil costs) will be the key for better performance. Divestment process and its timeline will be the key determinant for stock performance in near term.

Impact: Neutral