Mangalore Refinery and Petrochemicals Ltd (MRPL) has announced a return to profitability in the July-September quarter, buoyed by an increase in refining margins. The company reported a net profit of Rs 1,059 crore in this quarter, compared to a loss of Rs 1,789 crore during the same period last year. This turnaround can be attributed to the firm earning USD 17.11 on each barrel of crude oil processed into petrol and diesel, as opposed to a negative gross refining margin of USD 4.46 per barrel last year amidst the volatility in the global oil market caused by Russia’s invasion of Ukraine.
However, despite the positive financial results, MRPL’s revenue from operations decreased to Rs 22,844 crore in Q2, down from Rs 28,453 crore last year, mainly due to lower oil prices.
MRPL also achieved notable milestones during this quarter. In July, the company recorded a record gross crude throughput of 1.43 million tonnes, surpassing its previous best of 1.42 million tonnes in July 2019. Furthermore, before a maintenance shutdown, the refinery produced its highest-ever monthly volume of petrol at 195,000 tonnes in August.
Additionally, MRPL successfully reduced its interest-bearing long-term borrowing from Rs 13,783 crore in June to Rs 11,625 crore by the end of September. This led to an improvement in the company’s debt-equity ratio from 2.24 as of September 30, 2022, to 1.17 as of September 30, 2023.
For the period of April-September, MRPL achieved a net profit of Rs 2,072 crore with a turnover of Rs 47,676 crore. In comparison, the company recorded a profit of Rs 918 crore with a turnover of Rs 64,368 crore during the same period last year.
Looking ahead, MRPL aims to expand its retail marketing presence and reduce its reliance on exports. The company plans to grow its retail business under the HiQ brand, with a target of achieving 1 million tonnes in sales within the next 3 to 5 years. Additionally, MRPL is proactively exploring opportunities in the green fuels sector and conducting future expansion studies to further enhance its profitability.
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