Mangalore Refinery and Petrochemicals Ltd (MRPL) recorded a net profit of ₹969 crore during the third quarter of 2021-22 against a loss of ₹76 crore in the corresponding period of 2020-21.

The company informed the stock exchanges that 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 the revenue from marketing margins in domestic, exports and B2B arrangements, it said.

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 at 4.37 million tonnes (mt) during the reporting quarter as against 3.08 mt in the corresponding period of 2020-21. The company said it achieved crude throughput of 116.44 per cent of the capacity utilisation.

Highest production of polypropylene and petrol was achieved in October and December months of the Q3 of 2021-22. It said the highest dispatch of LPG was also achieved during the quarter.

The company informed stock exchanges that the demand for petroleum products was lower during the first half of 2021-22 due to Covid-related lockdowns, resulting in lower crude throughput.

However, the demand has improved for petroleum products during the third quarter of 2021-22 as compared to previous quarter of current fiscal, resulting in higher throughput.

The management has assessed the potential impact of Covid 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, it said.

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, the company said.

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 said that it commissioned FCC gasoline treatment unit during the quarter as a part of the BS-VI project, and stabilised and operated beyond 100 per cent of the design capacity producing additional about 25 TMT (thousand metric tonnes) per month of motor spirit (petrol).

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