The Hindu Business Line : MRPL net rises on better refining margins, higher domestic allocation

Mangalore Refinery and Petrochemicals Ltd (MRPL) earned a net profit of Rs 1,272 crore during 2007-08 against Rs 525 crore in the previous year, recording a growth of 142 per cent.

Its turnover during 2007-08 stood at Rs 37,339 crore (Rs 32,208 crore), a 14 per cent growth.

Mr R. Rajamani, Managing Director of the company, told Business Line from New Delhi here on Wednesday that the impressive growth in net profit is because of three reasons.

He said the gross refining margins (GRMs) have been good. During 2007-08, the GRM was $7 a barrel as against $4.6 a barrel in the previous year.

“Basically the difference between the crude, product prices and the cracks have sustained very well,” he said.

The second reason was that the company went in for heavier crude from Iran. “We have gone for heavier crude, because of which we got better advantage in price,” he said.

Third, the company’s exports came down slightly. The exports during the year stood at Rs 11,232 crore (Rs 11,637 crore). “Domestic allocation has increased,” he said

The appreciation of rupee has also helped the company. “We have gained from this to the tune of around Rs 160 crore in the previous fiscal,” Mr Rajamani said.

The plant recorded highest ever refinery crude throughput at 12.55 million tonnes (12.53 mt). Terming it as the highest ever capacity utilisation at 130 per cent, it said this is the highest capacity utilisation amongst all Indian refineries.

To pay 12%

The board of directors has recommended a dividend of Rs 1.20 a share (12 per cent) as against 8 per cent in the last fiscal.

Q4 PERFORMANCE

During the fourth quarter, the company has recorded a turnover of Rs 10,812 crore (Rs 7,737 crore) and earned net profit of Rs 225 crore (Rs 182 crore).

The MRPL stock closed at Rs 102.65 on the BSE on Wednesday against its previous close of Rs 104.70.