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Low crude prices pare bottom from MRPLs Q3 numbers

MANGALURU: Karnataka’s best refiner – Mangalore Refinery and Petrochemicals Ltd – has posted a meagre internet benefit of Rs 13 crore for the first nine months of the current fiscal. A sudden drop in international crude prices and product prices failing to catch up meant that the subsidiary of ONGC additionally ended up with a loss before tax of Rs 357 crore for the 3rd quarter of present fiscal as against a benefit before tax of Rs 1481 crore quarter-on-quarter.

In the first nine months, MRPL’s gross refining margin (GRM) stood at three.72 $/bbl against 7.42 $/bbl against the corresponding nine months of the former quarter. Gross revenue from operations for the nine months of the fiscal was Rs 54,565 crore, up 23% for corresponding nine months of FY 18-19. Profit before tax at Rs 112 crore was down 96% for corresponding 3 quarters, while exports at Rs 21,054 crore have been up 77% for corresponding 3 quarters.

In the 3rd quarter of the current fiscal, the gross revenue from operations was Rs 20,250 crore, up 16% quarter on quarter. Exports at Rs 8,852 crore, up 54% quarter on quarter. The board of administrators of MRPL, right through its 222nd meeting hung on February 7, authorized its un-audited (limited evaluation) monetary results for the 3rd quarter and nine months of FY 2018-19, M Venkatesh, managing director, MRPL, in a communiqué on Friday, stated.

Noting that the company had a powerful physical performance within the first nine months and the 3rd quarters in question, Venkatesh told NewsTread that the price between product and crude is likely one of the lowest that he has noticed in his career. “For a standalone refinery that MRPL is, what matters is the differential between product and the crude,” he stated, including MRPL does not get any advertising and marketing margins not like integrated refiners comparable to HPCL or BPCL who get advertising and marketing margins.

Hoping for a turnaround in monetary fortunes within the last quarter given the current volatility in major oil producing markets comparable to Venezuela and Iran, Venkatesh stated MRPL has persevered its strong market presence by way of direct advertising and marketing of its products petcoke, sulphur and polypropylene. The product grades of polypropylene had been higher to make stronger polypropylene market share and thereby fetch higher margins.

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