The Hindu Business Line : MRPL posts Rs 551-cr net profit in Q4

WITHIN a year of acquiring Mangalore Refinery and Petrochemicals Ltd, ONGC Ltd has managed to turn around the once loss-making company. MRPL has reported a net profit of Rs 551.15 crore in the fourth quarter ended March 31, 2004 compared to a net loss of Rs 80.34 crore last year.

MRPL's fourth quarter net profit has helped the company register a profit of Rs 459.41 crore for the financial year ended March 31, 2004 compared to a net loss of Rs 411.80 crore last year.

The company's rupee debt has been cut by Rs 1,000 crore to Rs 2,185 crore during 2003-04 and the weighted average interest cost reduced to 9.15 per cent from 13.6 per cent.

Net sales and income from operations in the quarter went up 77 per cent to Rs 3,635.50 crore (Rs 2,049.60 crore). Other income at Rs 438.70 crore (Rs 22.29 crore) included incremental export benefits worth Rs 131.58 crore, a news release said. Net sales for the year stood at Rs 11,390.64 crore (Rs 8,058.77 crore).

MRPL, which was earlier a 50:50 joint venture between the AV Birla Group and HPCL, was on the verge of being referred to the BIFR in 2002-04 before ONGC acquired a 51 per cent stake and management control in the company.

Total expenditure for the quarter stood at Rs 3,200.72 crore (Rs 1,947.09 crore), while interest and finance charges stood at Rs 94.32 crore (Rs 94.45 crore).

"The Mumbai High crude processed by the 9-million tonne MRPL refinery would be doubled to 4.5 MMT in the current fiscal from 2.13 MMT in the 2003-04," Mr Subir Raha, Chairman, MRPL, told reporters. He, however, said that this would not mean cutting crude supplies from Mumbai High to other refineries.

"We will be stepping up production from Mumbai High," Mr Raha said. ONGC had produced an additional 1.5 million tonnes crude oil from Mumbai High, which currently is undergoing redevelopment, in financial 2003-04.

ONGC Ltd will start with setting up petrol stations under ONGC brand name instead of MRPL. The company would begin with a small number of outlets instead of a retail blitzkrieg this fiscal, Mr Raha said.

While MRPL has the licence to set up 500 retail outlets across the country, ONGC has permission to set up 1,100 retail outlets.

High crude prices may hit ONGC Videsh's plans

RISING global crude prices could hamper the plans of ONGC Videsh Ltd plans to acquire exploration and production acreage abroad, Mr Subir Raha, Chairman, ONGC, MRPL and OVL, said here on Tuesday.

"In a way it (rising crude prices) does affect OVL's opportunities to buy opportunities abroad," Mr Raha said. He was speaking in the context of rising crude prices that would in turn lead to an increase in the value of production acreages across the worldwide, making it difficult for ONGC's arm.

He, however, said that several global oil majors were restructuring portfolios during the time of such upheavals and this could help OVL get a better deal.

The cost of a barrel of crude reached $41.80, close to a 21-year high, from below $30 levels in the last one-and-half months with global demand far outstripping supply.