In an interview with CNBC-TV18, MRPL MD H Kumar said the company's fiscal year 2014-15 results were affected by inventory losses of about Rs 2,700 crore.
The company is confident of sustaining its solid run in the last quarter of FY15 into the current fiscal, he told CNBC-TV18's Ekta Batra and Anuj Singhal in an interview.
Below is the transcript of the interview on CNBC-TV18.
Ekta: Wanted to start with the quarter gone by, you managed to do gross refining margins (GRMs) of around USD 7 per barrel for the quarter gone by. Can you tell us what you might do for FY16, what the outlook is looking like?
A: We have registered USD 7 GRM for Q4. This was basically possible because of the increased throughput. If you see our throughput was 4.12 million metric tonne during the quarter, which is the highest for any quarter so far. Also the secondary processing units like the delayed coker unit (DUC), the Petrochemical Fluidized Catalytic Cracking (PFCC) and these units were also run fully and we could achieve this kind of margins.
Anuj: For the full year of course you have reported loss but would you say that that should be an aberration now and in the current financial year, do you think you should be back to profitability and what kind of number do you think you can deliver of course we are assuming that the current scenario of oil price is sustaining?
A: For FY14, we have reported an inventory loss of almost Rs 2,750 crore, which roughly converts to USD 4.08 per barrel on an annualised basis. So if you take that out, on an operating level we have made close to USD 3.4. Couple of reasons are there, one is our primary units were running on capacity but the secondary processing units were commissioned progressively from April 2014 to September-October of 2014.
In the last quarter, the secondary units have run in full and so we are now confident that going forward for FY15 we will be able to sustain the same kind of operations as what we have seen in Q4.
Ekta: Can you give us an update in terms of the Iran payables, there is an expectation that it could be cleared in FY16, can you tell us where the situation stands?
A: Currently we are making payments as and when the banking channels are available. We are also awaiting for any direction and the opening of the banking channels for making payments to Iran. As and when that happens, we will keep paying the proportionate amount which is released as part of the list of sanctions.
Anuj: Any more acquisition that you have planned over the next one year or so?
A: No, currently we have taken 51 percent stake in the ONGC-Mangalore Petrochemical Ltd. Further we don’t have any plans of any acquisition.
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