Media Release

Mangalore, May 8: Mangalore Refinery & Petrochemicals Ltd, an ONGC Group company and a Mini Ratna I, announced its audited results for Q4 and for the financial year 2007-08, recording scorching growth and setting benchmarks in performance.

Highlights of FY 2007-08

Highest ever Refinery Crude Thruput at 12.55 MMT (up from 12.53 MMT)
Highest ever capacity utilization at 130%, up 1% from 129%, highest capacity utilization amongst all Indian refineries
Highest ever turnover at Rs 37,339 crore, up 14% from Rs 32,208 crore
Highest ever profit after tax of Rs 1272 crore, up by 142% from Rs 525 crore
 
In financial year 2007-08 MRPL’s performance on fiscal and physical parameters have been commendable and the company earned a net profit of Rs 1,272 crore as compared to Rs 525 crore in the previous year, after providing for interest and finance charges of Rs 148 crore (Rs 215 crore), depreciation of Rs 378 crore (Rs 355 crore) and tax liability of Rs 461 crore (Rs 563 crore). The exports during the year were Rs 11,232 crore (Rs 11,637 crore).

The board of directors recommended a dividend of  12% (vis a vis the previous year’s 8%). Despite substantial improvement in financial performance, the recommendation of the board to increase the dividend marginally is due to the large requirement of funds for the ongoing refinery upgradation and expansion project, involving capex in excess of Rs 8,000 crore and also the continuing heavy under-recoveries in the  direct sale of products.

Performance in Q4

During the fourth wuarter ended March 31, 2008, MRPL has recorded turnover of Rs 10812 crore (Rs 7737 crore) and earned net profit of Rs 225 crore (Rs 182 crore) after providing for interest Rs 36 crore (Rs 47 crore), depreciation Rs 95 crores (Rs 93 crore) and tax provision of Rs 84 crore (Rs 300 crore). The thruput for the quarter for Rs 3.15 million (Rs 3.20 million). 
 
Awards and Recognitions

The company continues its excellent performance in energy conservation.  In recognition of this, MRPL has been awarded for the fourth consecutive year the ‘Jawaharlal Nehru Centenary Award for Energy Efficiency’ by center for high technology, MOPNG.

The Oil Industry Safety Directorate has awarded the company 2nd place in Oil Industry Safety Award 2006-07 under group one category.

The company bagged the National Safety Award from union ministry of labour and employment for 2006 under scheme 2. 

The company bagged the best export award by FKCCI for highest volume of export through New Mangalore Port Trust during 2006-07.

Accreditation

MRPL’s quality control laboratory  has been accredited by National Accreditation Board for Laboratories (NABL).

CRISIL has reaffirmed the 'CCR  AAA' rating, indicating highest degree of strength, with regard to honoring debt obligations. 

ICRA  has also reaffirmed the rating of 'Ir AAA,' indicating highest credit quality.
 
Marketing Initiatives

The company’s first retail outlet ‘HiQ’ was launched in the month of January 2008 at Maddur (Mysore - Bangalore highway). Two more retail outlets are in advanced stage of completion and are likely to be operational shortly. The company is cautiously moving to set up about 10 retail outlets in the state and Andhra Pradesh during the financial year 2008-09.

MRPL has entered into aviation fueling business with Shell Aviation, the global leader in Aviation fueling business.  A joint venture company has been formed in name of ‘Shell MRPL Aviation Fuel and Service Pvt Ltd.’.

Status of Projects

1. The company has received the environmental clearance for Phase III expansion project. The project among other improvement envisages  primarily increasing the capacity of crude thruput from 9.69 MMTPA to 15 MMTPA, addition of secondary processing unit for increasing the distillate yield and capacity to process high tan crude  The land acquisition work is complete and relocation of project affected people in progress.  This will facilitate commencement of site activities. The contractors are already at site  for commencement of site grading work.  Selection of Licensors for Process Technology for major Licenced Units has already been completed and the Basic Engineering & Design work is under progress.  Tendering  Process for critical Units viz. 3 MMTPA Crude and Vacuum Distillation Unit, Captive Power Plant, Crude Storage tanks and LPG mounded bullets is in progress. 

2. India’s largest – diameter LPG mounded bullets were commissioned in February 2008, thereby creating additional storage facility of 4,500 Metric Tonnes of LPG, to meet the contingency requirement for smooth operation.  

3. The environment clearance for Aromatic Complex proposed to be set up in SEZ by ONGC Mangalore Petrochemicals Ltd (SPV of ONGC-MRPL) has already been received.  The Licensor’s selection for the Aromatics Complex has been completed and Basic Engineering & design work already commenced.

4. Process packages are under preparation for the low cost revamp of the existing crude distillation unit and Gas Oil Desulphurisation unit (GOHDS).

Corporate Social Responsibility

The company as a socially conscious corporate continues its `Samrakshan', programme through multifarious contributions like providing electricity for drawing water at rehabilitation colony for drinking water, donation of medical equipment to hospitals, construction of anganwadi building, donating scientific teaching aids, scholarships to deserving students, providing infrastructure facility to schools, women’s help programmes, providing generators to hospitals, development of parks in the city etc. 

Completion of 5 years under ONGC Management

MRPL completed 5 years under ONGC's management on March 29. During these 5 years, the turnover of the company increased from Rs 8,581crore to Rs 37,339 crore, capacity utilisation increased from 75% to 129% and Refinery thruput from 7.24 MMTPA to 12.54 MMTPA.  Debt Equity ratio has reduced from 3.45:1 to less than 0.5:1 and the company is now having corporate credit rating of "AAA" by CRISIL and ICRA, as against virtually a sick company 5 years back.  Shareholders have seen appreciation in their share value by more than 20 times and are now receiving regular dividend for last 4 years.  MRPL thus presents a unique example in the Indian corporate history of a public sector company turning around virtually sick private sector company.

Speaking on the occasion R S Sharma, chairman, complimented team MRPL for sustained all round excellent performance during the year and thanked all the stakeholders for their unstinted support and confidence in MRPL.