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Mangalore Refinery and Petrochemicals Ltd (MRPL) declared a loss of ₹1,596.44 crore in the fourth quarter of 2019-20, as against a net profit of ₹318.57 crore in the corresponding period of the previous financial year.
A press release by the company said that there was a negative GRM (Gross Refining Margin) of $4.52 per barrel during the fourth quarter of 2019-20 as against a positive GRM of $5.01 per barrel in the Q4 of 2018-19.
The total throughput of the refinery stood at 3.83 million tonnes in the Q4 of 2019-20 as against 4.29 million tonnes in the corresponding period of the previous financial year.
During the Q4 of 2019-20, the gross turnover of the company stood at ₹17,540 crore (₹17,744 crore), and exports at ₹3,105 crore (₹6,955 crore).
COVID IMPACT
It said that the outbreak of Covid-19 pandemic globally and resultant lockdown in many countries, including in India from March 25, has impacted the business of the company during the fourth quarter.
Consequently, lower demand for crude oil and petroleum products has impacted the prices and refining margin globally. Since the petroleum products are under essential services, the refining operations of the company was continued during the lockdown period. Due to lockdown there was reduction in sales for the company, it said.
MRPL declared net loss of ₹2,708 crore in the fiscal 2019-20 as against a net profit of ₹332 crore in 2018-19. It recorded a negative GRM of $0.23 per barrel as against a positive GRM of $4.06 per barrel in the previous fiscal.
FUTURE OUTLOOK
On the future outlook, the company said that the lockdown is continuing for financial 2020-21 and the company is continuing its operation with current lower demand and margins as these products are falling under essential goods and services.
The management is expecting that demand for products will improve on post-removal of lockdown on stabilisation of Covid-19. The management has assessed the potential impact of Covid-19 based on the current circumstances and expects no significant impact on the continuity of operations of the business on long-term basis / on useful life of the assets / on long term financial position etc., though there may be lower revenues and refinery throughput in the near future, it said.
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