The Mangalore Refinery and Petrochemicals Limited (MRPL) posted a net profit of Rs 969 crore during the third quarter of 2021-22 against a loss of Rs 76 crore in the corresponding period in 2020-21.
The gross revenue from operations stood at Rs 25,238 crore during Q3 of 2021-22 against Rs 14,136 crore in the third quarter of 2020-21. Multiple initiatives have been taken to improve revenue from marketing margins in domestic, exports and business-to-business (B2B) arrangements, a company release here said.
The gross refining margin (GRM) of the company stood at Rs 9.29 a barrel during Q3 of 2021-22 as against Rs 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 4.37 million tonnes (MT) during the reporting quarter as against 3.08 MT in the corresponding period in 2020-21. The company achieved crude throughput of 116.44 percent in capacity utilisation.
Highest production of polypropylene and petrol was achieved in October and December of Q3 of 2021-22. Highest dispatch of LPG was also achieved during the quarter. MRPL commissioned a desalination plant in December 2021 that will mitigate one of the major risks faced by the company with respect to water availability.
Besides this, new HSD (high-speed diesel) tanks, along with the new HSD coastal line to jetty, were commissioned during the quarter. The company informed the stock exchange that demand for petroleum products was lower during the first half of 2021-22 due to COVID-19 related lockdowns, resulting in lower crude throughput.
However, the demand for petroleum products has improved during the third quarter of 2021-22 as compared to previous quarter of the current fiscal, resulting in higher throughput.The management has assessed the potential impact of COVID-19 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 assets and on long-term financial position, the press release said.