New Delhi: Oil PSUs Bharat Petroleum Corporation and Hindustan Petroleum Corporation have made it to the top 15 global firms in terms of biggest increase in profits, according to 2007 Fortune Global 500 list.
BPCL and HPCL have been ranked ahead of big names like Hewlett-Packard, Alstom and Time Warner with their profits jumping by a huge 324.9 per cent and 262.1 per cent respectively in 2006, thanks to sale of oil bonds that figures under the revenue head.
Interestingly, the Global 500 list includes five Indian oil companies, four of them are state-run entities and the lone private firm is corporate giant Reliance Industries.
Indian Oil, BPCL, Reliance Industries and HPCL also figure among the top 39 petroleum refining companies in the global 500 list. IOC is at 20th position with revenues of $45,217 million, while Reliance Industries with $25,159 million is at ranked 26 and BPCL takes the 31st slot with $21,862 million for 2006. HPCL is at 33 with revenues of $20,936 million.
BPCL had received oil bonds of Rs2,163.12 crore from the Government in March, 2006 to compensate for the loss the Corporation had reported in the first three quarters of FY06.
The loss had been due to adverse affect of high crude oil and product purchase prices, which was not passed on to the consumers fully.
Besides the Government had issued bonds to HPCL worth Rs2,344.86 crore to compensate for the losses suffered by oil marketing companies. The same was reflected in the sales of the company leading to the huge jump in its profits.