Mangalore Refinery and Petrochemicals Ltd., on Monday declared ₹71 crore net loss and a gross refining margin of $3.26/bbl (barrel) for the third quarter of 2020-21. The company also suffered a net loss of ₹555 crore and reported GRM of $2.25/bbl during nine months of the financial year ending December 31, 2020.
A release from the company here said the Board of Directors in their 235th meeting on Monday approved the standalone and consolidated unaudited financial results of Q3 and Nine Months ending December 2020.
MRPL said the capacity utilisation gradually improved during the current quarter as compared to the previous quarter of the current year. Management has assessed the potential impact of COVID-19 based on the current circumstances and expects no significant impact on the continuity of the operations of the business on a long-term basis.
Regarding the recoverability of assets and financial resources, performance of contractual liability and obligations, ability to service the debts and liabilities, the company expects to fully recover the carrying amounts of the assets and comfortably discharge its debts and obligations. MRPL is positive on long-term business outlook as well as its financial position. It approved the Long Term Settlement pertaining to wage revision and other related benefits of the Non-Management staff that was due for revision effective from January 1, 2017.
OMPL acquisition
In continuation to earlier board approval for the acquisition of 1,24,66,53,746 equity shares of ₹10 each of ONGC Mangalore Petrochemicals Ltd. (OMPL), a subsidiary of the company from Oil and Natural Gas Corporation Ltd. (ONGC) (an existing shareholder of OMPL), ₹1,216.73 crore was paid to ONGC towards acquisition consideration. ONGC has transferred 124,66,53,746 shares of OMPL to MRPL’s demat account on January 1, 2021, thereby increasing MRPL’s shareholding in OMPL to 99.9998%.
Financial highlights
MRPL derived ₹14,136 crore as gross revenue from operations in Q3 as against ₹16,745 crore in Q3 of 2019-20. During the nine months of 2020-21, MRPL’s gross revenue from operations was ₹30,231 crore as against ₹43,206 crore in 2019-20. It had reported ₹37 crore net loss for Q3 and ₹1,111 crore net loss for the nine months during 2019-20.
