MRPL swings to profitability on robust refining margins

Mangalore Refinery and Petrochemicals Ltd (MRPL) on Wednesday reported return to profitability in the July-September quarter on the back of a refining margin boost.

Net profit of Rs 1,059 crore in July-September is compared with a loss of Rs 1,789 crore in the same period a year back, the company said in a statement.

The firm earned USD 17.11 on turning every barrel of crude oil into fuels like petrol and diesel in the quarter as against a negative gross refining margin of USD 4.46 per barrel in the same period last year when the international oil market was volatile in the aftermath of Russia’s invasion of Ukraine.

Revenue from operations however dropped to Rs 22,844 crore in Q2 from Rs 28,453 crore last year largely because of lower oil prices.

MRPL said it had a record gross crude throughput in July of 1.43 million tonnes in July, surpassing the previous best of 1.42 million tonnes in July 2019. Before a maintenance shutdown, the refinery produced the highest-ever monthly volume of petrol at 195,000 tonnes in August.

Also, the company saw a reduction in interest-bearing long-term borrowing from Rs 13,783 crore as of June 20 to Rs 11,625 crore as on September 30.

”Debt-Equity Ratio improved from 2.24 as on September 30, 2022, to 1.17 as on September 30, 2023,” it said.

For April-Sepember, the company posted a net profit of Rs 2,072 crore on a turnover of Rs 47,676 crore. This compared with a profit of Rs 918 crore on a turnover of Rs 64,368 crore last year.

MRPL said it is looking to expand its retail marketing foot print and reduce its export reliance.

”The company seeks to expand its retail business under its HiQ brand, with a primary goal of achieving a 1 million tonnes sales target in the next 3 to 5 years,” it said..

”Additionally, recognizing the evolving energy landscape toward renewables, MRPL is strategically looking into green fuels and future expansion configuration studies to further improve its profitability.”