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 period last year. The improved performance can be attributed to the firm earning USD 17.11 on every barrel of crude oil it refined into petrol and diesel, as opposed to a negative gross refining margin of USD 4.46 per barrel last year when the global oil market was turbulent due to Russia’s invasion of Ukraine.
However, despite this positive development, MRPL’s revenue from operations decreased to Rs 22,844 crore in Q2 from Rs 28,453 crore last year, largely due to lower oil prices. On a positive note, the company achieved a record gross crude throughput in July, processing 1.43 million tonnes, surpassing the previous best of 1.42 million tonnes in July 2019. Additionally, the refinery produced its highest-ever monthly volume of petrol at 195,000 tonnes in August before a maintenance shutdown.
Moreover, MRPL witnessed a reduction in interest-bearing long-term borrowing from Rs 13,783 crore in June to Rs 11,625 crore by September 30. The company also noted an improvement in its debt-equity ratio, which decreased from 2.24 as of September 30, 2022, to 1.17 as of September 30, 2023. For the April-September period, MRPL reported a net profit of Rs 2,072 crore on a turnover of Rs 47,676 crore, while last year during the same period, it recorded a profit of Rs 918 crore on a turnover of Rs 64,368 crore.
Looking ahead, MRPL aims to expand its retail marketing footprint and reduce its reliance on exports. The company intends to grow its retail business under the HiQ brand, with a target of achieving sales of 1 million tonnes in the next 3 to 5 years. Furthermore, recognizing the shift towards renewable energy sources, MRPL is strategically exploring green fuels and conducting future expansion configuration studies to enhance its profitability.
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