Mangalore Refinery and Petrochemicals Ltd. (MRPL) posted a net profit of ₹969 crore during the third quarter of 2021-22 against a loss of ₹76 crore in the corresponding period in 2020-21.
The gross revenue from operations stood at ₹25,238 crore during the Q3 of 2021-22 against ₹14,136 crore in the third quarter of 2020-21. Multiple initiatives have been taken to improve revenue from marketing margins in domestic, exports and B2B arrangements.
The gross refining margin (GRM) of the company stood at $9.29 a barrel during Q3 of 2021-22 as against $3.26 a barrel in the corresponding period of the previous year. GRM is the difference between the price of crude oil and the end products.
The throughput of the refinery was 4.37 million tonnes (mt) during the reporting quarter as against 3.08 mt in the corresponding period in 2020-21. The company achieved crude throughput of 116.44% in capacity utilisation.
Highest production of polypropylene and petrol was achieved in October and December of Q3 of 2021-22. Highest dispatch of LPG was also achieved during the quarter.
MRPL commissioned a desalination plant during December 2021. This plant will mitigate one of the major risks faced by the company with respect to water availability.
Apart from this, new HSD (high-speed diesel) tanks, along with the new HSD coastal line to jetty, were commissioned during the quarter.
The company commissioned FCC gasoline treatment unit during the quarter as part of the BS VI project, and stabilised and operated beyond 100% of the design capacity producing additional about 25 TMT (thousand metric tonnes) per month of motor spirit (petrol).
The company informed the stock exchange that demand for petroleum products was lower during the first half of 2021-22 due to Covid-19-related lockdowns, resulting in lower crude throughput.
However, demand for petroleum products has improved during the third quarter of 2021-22 as compared to previous quarter of the current fiscal, resulting in higher throughput.
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 assets, and on long-term financial position.
