Mangalore: 'Year of milestones' for MRPL despite shutdown: Chairman

Pics: Spoorthi Ullal
Daijiworld Media Network - Mangalore

Mangalore, Sep 24: "In just 10 years, the MRPL under the ONGC Group turned around from a BIFR (Board for Industrial and Financial Reconstruction) case to a ‘Mini Ratna, Category 1’ in July 2007 and a Schedule “A” Public Sector Enterprise in July, 2013. The company moved the needle of capacity utilization from a sluggish 70% a decade back to a remarkable above 100% capacity utilization, year on year, for the last decade. The capacity itself has been increased from 9.69 MMTPA to 15 MMTPA. The company’s ability to deliver results is recognized by the Indian hydrocarbon industry and its has been awarded “Refinery of the Year” for 2009 and for 2012 by Petrofed," said Sudhir Vasudeva, chairman, MRPL.

He was addressing the media while briefing the 25th annual report for 2012-13 at MRPL premises on Monday, September 23.

"2012-13 was a year of new milestones. The company has processed the highest ever crude of 14.4 MMT during the year and posted the highest ever gross turnover of Rs 68,834 crore despite the shutdown of the refinery due to water shortage during April 19 to April 27, 2012. Inspite of the good physical performance during the year, the company incurred a net loss after tax of Rs 757 crore against after tax profit of Rs 909 crore in the previous year. The loss was mainly contributed by shutdown of the refinery due to water shortage at a time when the price of crude and product was falling resulting in inventory losses, lower operating margin, higher depreciation and interest cost arising out of Phase III capitalization. It must be admitted that the company has put in a very creditable performance during the year 2012-13 in the background of the industry scenario and as compared with the performance results of the peers. On completion of Phase-III project in its entirety, the company anticipates the benefits of the project will start accruing and is expected to be in the path of profittability again," he said.

Main highlights of the company’s performance during the year 2102-13:

- Processed the highest ever crude of 14.4 MMT during the year 2012-13, against 12.82 MMT in 2011-12 and recorded the highest ever gross turnover of Rs 68,834 crore for the year 2012-13 against Rs 57,207 crore for the year 2011-12.
- Higher distillate yield in 2012-13 at 76.55% as against 73.27% in 2011-12.
- Set a new record in export during the year at 7.10 MMT vis-a-vis last year’s 5.59 MMT.
- Procured the highest crude of 14.15 MMT during the year 2012-13 as against 13.02 MMT in 2011-12 at a time of sanction against Iran.
- The product despatch for the year 2012-13 at 13.17 MMT was highest against 11.95 MMT in 2011-12.

Fuel and loss for the year 2012-13 was 7% against 6.75% in 2011-12. Higher fuel and loss was mainly on account of commissioning activities of Phase-III units and force majeure shutdown of the refinery during the first quarter of the year due to water crisis. The energy index for the year 2012-13 was 61.01 (MBTU / BBL / NRGF) against 57.92 in 2011-12 and MBN was higher during the year due to higher fuel & loss and lower complexity operations. The company processed some new crudes namely Zafiro, Rabi, Aseng and Hungo for the first time during the year 2012-13.

The company has achieved the highest ever export turnover of Rs 33,340 crore during the year 2012-13 by exporting petroleum products viz., Motor Spirit, Naphtha, Mixed Xylene, High Speed Diesel, Jet fuel and Fuel Oil. The three year term export contract for the supply of petroleum products to State Trading Corporation, Mauritius to meet the demands of Republic of Mauritius continued during the year. The company has successfully finalised a new 3 year contract with STC, Mauritius for supply of petroleum products which will be valid till July 31, 2016. In the global competitive market, the company has secured its place by exporting the petroleum products and is continuing to explore opportunities for its growth.

With regard to environment management and performance, Vasudeva said that the company’s philosophy is to perform beyond compliance - that is to perform better than the minimum required by statutes. The refinery is certified with ISO 14001: 2004 for Environment Management Systems. Phase III advanced Waste Water Treatment Plant which includes oil effluent treatment unit and Sequential Batch Reactor (SBR) unit was commissioned in the month of March, 2013. Membrane Bio Reactor (MBR) unit precommissioning jobs are in progress. Sulphur Pastillation Unit is being commissioned in the refinery as a part of Phase – III to reduce dust emissions in the Sulphur Recovery Unit (SRU). An advanced Reverse Osmosis (RO) Plant is set up for maximizing the quantity of treated ef?uent back to the refinery. RO will be commissioned shortly. Environment Awareness programs are organized periodically in the neighbouring villages and schools in association with Karnataka State Pollution Control Board (KSPCB).

The company continued its direct marketing activity in the segment of petroleum products in Karnataka and the adjoining states. The direct sales turnover during the year 2012-13 was Rs 3,750 crore compared to Rs 2,755 crore in the previous year.

The company’s joint venture with Shell B V Netherlands in the name of Shell MRPL Aviation Fuel Services Private Limited (SMAFSPL) supplies aviation turbine fuel to both domestic and international airlines at Indian airports. During the year, this joint venture company was converted into a public company (SMAFSL).

MRPL has been upgraded from Schedule ‘B’ to Schedule ‘A’ company with effect from July 4, 2013. The company has bagged the coveted Petrofed Award, 2012 “Refinery of the Year” for the commendable performance in production and operational efficiencies while meeting the norms of health, safety and environment protection. The company has won “Export Excellence Award, 2013” in the best manufacturer-exporter - large category-gold by Federation of Karnataka Chamber of Commerce and Industry, he said.

P P Upadhyaya, managing director, Vishnu Agarwal, director of finance, V G Joshi, new director of refineries and others were present.