The Hindu Business Line : MRPL posts Rs 29.5-cr net loss in Q4

Mangalore Refinery and Petrochemicals Ltd, a subsidiary of Oil and Natural Gas Corporation, has posted a net loss of Rs 29.50 crore for the fourth quarter ended March 31, 2006, compared to a net profit of Rs 310.89 crore during the same period the previous year. The total income for the same period has increased to Rs 6,415.38 crore (Rs 5,292.84 crore).

For the year ended March 31, 2006, MRPL has posted a net profit of Rs 371.61 crore (Rs 879.75 crore). According to the company, the decline in net profit is after making provisions for financing and interest charges of Rs 188 crore (Rs 230 crore), depreciation of Rs 350 crore (Rs 378 crore) and deferred tax/current tax liability of Rs 251 crore (Rs 581 crore). Total income for the year has increased to Rs 25,044.32 crore (Rs 18,694.76 crore).

Fall in net profit

The reduction in net profit is mainly due to discounts on petroleum products to oil marketing companies (OMCs). The other reasons include reduced product offtake (43 per cent against 55 per cent) by the OMCs in domestic market having higher margins, and reduction in refining margins in line with global trends.

Dividend

The board, under the Chairmanship of Mr R.S. Sharma, which met here on Friday,recommended a dividend of seven per cent. Outlining the company's investments and growth plans, MRPL said implementation of the ISOM Project for upgradation of facilities to produce petrol of Euro III/IV quality and mixed xylene Project for producing value added mixed xylene, is progressing on schedule.

Refinery upgradation

Besides, the boards of MRPL and ONGC have approved the refinery upgradation project, which would enhance refining capacity to 15 MMTPA from the present rated capacity of 9.69 MMTPA. This is simultaneously expected to improve the refining margins due to improved distillate yield/ new value added products in lieu of low value black oil pool. The board has also approved appointment of Engineers India Ltd as a prime management consultant for implementation of this project. The project is expected to be completed in about48 months. To add significant value to the surplus naphtha, plans have also been drawn up to set up aromatic and olefin complex at Mangalore SEZ.

Marketing initiatives

On the marketing front, the company has taken various initiatives. Direct marketing have started showing results and the company has secured entry into the diesel business of some very large consumers. The direct marketing sales have achieved almost 267 per cent growth during the year (Rs 1,411 crore against Rs 384 crore in the previous year).