Mangalore Refinery and Petrochemicals Ltd (MRPL) announced its return to profitability in the July-September quarter, thanks to a boost in refining margins. The company reported a net profit of Rs 1,059 crore during this period, compared to a loss of Rs 1,789 crore in the same quarter last year. MRPL earned USD 17.11 for every barrel of crude oil processed into petrol and diesel, a significant improvement from the negative gross refining margin of USD 4.46 per barrel in the volatile international oil market following Russia’s invasion of Ukraine.
However, MRPL experienced a drop in revenue from operations, which decreased to Rs 22,844 crore in Q2 from Rs 28,453 crore last year, mainly due to lower oil prices. Despite this, the company achieved a record gross crude throughput of 1.43 million tonnes in July, surpassing the previous best of 1.42 million tonnes in July 2019. Additionally, MRPL produced the highest-ever monthly volume of petrol, reaching 195,000 tonnes in August before a maintenance shutdown.
The company also made significant progress in reducing its interest-bearing long-term borrowing, with a decrease from Rs 13,783 crore in June to Rs 11,625 crore the end of September. This resulted in an improved debt-equity ratio of 1.17 as of September 30, 2023, compared to 2.24 in the same period in 2022.
In the April-September period, MRPL recorded a net profit of Rs 2,072 crore on a turnover of Rs 47,676 crore. This is in contrast to a profit of Rs 918 crore on a turnover of Rs 64,368 crore last year. Looking ahead, MRPL aims to expand its retail marketing footprint and reduce its reliance on exports. The company plans to expand its retail business under the HiQ brand, with a goal of achieving a sales target of 1 million tonnes in the next 3 to 5 years. MRPL is also exploring opportunities in green fuels and conducting future expansion configuration studies to further enhance its profitability in response to the evolving energy landscape.