MRPL posts marginal loss of Rs36 crore in Q1 of FY 14-15

MANGALORE: Board of directors of MRPL, a subsidiary company of ONGC approved its un-audited (limited review) results for the first quarter 2014-15. MRPLs refining throughput was 3.20MMT as against 3.27MMT in the corresponding previous quarter; the shortfall is due to planned shutdown. MRPL posted marginal loss of Rs 36 crore against loss of Rs 454 crore during the corresponding previous quarter after adjustment of tax.
The gross refining margin was lower at $ 0.66/bbl as against $ 2.94/bbl during the corresponding quarter, due to increased fuel and loss in a scenario of part commissioning of refinery expansion project. MRPL has adopted depreciation rate in line with the new schedule II to the Companies Act, 2013. Depreciation charge is lower by Rs 82.26 crore as compared to earlier years due to increase in useful life prescribed by the new Act.
MRPL has entered into a contract for next three years with Shell India Markets (Pvt) Ltd (Indian arm of the Royal Dutch Shell) for supply of motor spirit and high speed diesel. The company while retaining strong market presence in its refinery zone for products, namely bitumen and crumb rubber modified bitumen being marketed to direct customers, fuel oil market share has come down due to discount philosophy of players in the market.
MRPL pursuant to commissioning of delayed coker unit has been selling petcoke from April 2014. There is considerable demand for petcoke and MRPL has been able to sell substantial quantity of petcoke produced. MRPL phase III expansion project is in final stage of completion and has achieved an overall progress of 99.74% as on July 15. During the first quarter of 2014-15, MRPL commissioned delayed coker unit.
The company also commissioned coker hydro treater unit (CHTU) and two trains out of three trains of sulphur recovery unit (SRU). Petrochemical Fluidised Catalytic Cracking Unit (PFCCU) and one train of sulphur recovery unit (SRU) shall be commissioned shortly within this month, a MRPL communique here states. The physical progress of Polypropylene unit (PPU) is 96.30% and is expected to be mechanically completed by October 2014.