New Delhi - Bharat Petroleum Corporation Limited (BPCL) on Friday reported a net profit of Rs 551.16 crore for the December quarter on the back of full compensation for losses on fuel sales.

The company had reported a net loss of Rs 1,088.94 crore in the corresponding period of previous fiscal, BPCL said in a regulatory filing.

The government paid Rs 1,079.92 crore in cash subsidy while upstream oil producers like ONGC extended an assistance of Rs 2,332.88 crore to make up for all the losses that the firm had incurred on selling domestic LPG and PDS kerosene at rates lower than cost.

BPCL earned USD 1.54 on turning every barrel of crude oil into fuel in the quarter as compared to a gross refining margin of USD 1.76 per barrel in third quarter of previous fiscal.

The company reported net profit despite Rs 1,600 crore inventory loss it suffered in the quarter as international oil prices slumped.

Sales dipped to Rs 57,914.51 crore from Rs 64,767.62 crore earlier.

BPCL shares were trading 2.01 percent up at Rs 721.55 apiece during late afternoon session on the BSE. PTI