Mangalore Refinery and Petrochemicals Ltd (MRPL) has 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.
MRPL achieved a gross refining margin of USD 17.11 per barrel, a significant improvement from a negative margin of USD 4.46 per barrel in the previous year. This positive result can be attributed to a more stable international oil market compared to the volatile aftermath of Russia’s invasion of Ukraine.
However, the company’s revenue from operations dropped to Rs 22,844 crore in Q2 from Rs 28,453 crore in the previous year, mainly due to lower oil prices. Despite this, MRPL managed to achieve a record gross crude throughput in July, surpassing the previous best in July 2019.
In addition, interest-bearing long-term borrowing reduced from Rs 13,783 crore to Rs 11,625 crore between June 20 and September 30. This reduction led to an improvement in the debt-equity ratio from 2.24 to 1.17 during the same period.
For the April-September period, MRPL posted a net profit of Rs 2,072 crore with a turnover of Rs 47,676 crore. This is a notable decrease compared to a profit of Rs 918 crore and turnover of Rs 64,368 crore in the previous year.
MRPL intends to expand its retail marketing footprint and reduce its dependence on exports. The company aims to achieve a sales target of 1 million tonnes under its HiQ brand within the next 3 to 5 years. Furthermore, MRPL is exploring opportunities in green fuels and conducting future expansion configuration studies to enhance profitability, in line with the evolving energy landscape.
With its recent financial turnaround and strategic initiatives, MRPL is poised for a promising future in the refining and petrochemicals industry.
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