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Mangalore Refinery And Petrochemicals Ltd.

BSE: 500109 Sector: Oil & Gas
NSE: MRPL ISIN Code: INE103A01014
BSE LIVE 15:54 | 18 Aug 124.60 3.10
(2.55%)
OPEN

120.50

HIGH

126.30

LOW

118.65

NSE 15:57 | 18 Aug 124.55 3.40
(2.81%)
OPEN

120.00

HIGH

126.35

LOW

118.10

OPEN 120.50
PREVIOUS CLOSE 121.50
VOLUME 311241
52-Week high 142.75
52-Week low 76.25
P/E 10.46
Mkt Cap.(Rs cr) 21,837
Buy Price 0.00
Buy Qty 0.00
Sell Price 124.60
Sell Qty 1736.00
OPEN 120.50
CLOSE 121.50
VOLUME 311241
52-Week high 142.75
52-Week low 76.25
P/E 10.46
Mkt Cap.(Rs cr) 21,837
Buy Price 0.00
Buy Qty 0.00
Sell Price 124.60
Sell Qty 1736.00

Mangalore Refinery And Petrochemicals Ltd. (MRPL) - Chairman Speech

Company chairman speech

Dear Stakeholder

It gives me immense pleasure to share my views with our valued stakeholders and presentthe 28th Annual Report for the year 2015-16.

As you are aware that the global oil and gas industry is in the midst of one of theseverest downturns in last few decades. Industry revenues have fallen with eroding returnsfrom falling commodity prices driven by a global oversupply of oil and natural gas and theimpact of higher industry debt levels. The rapid collapse in crude and commodity prices in2014-15 continued to reverberate in 2015-16 also affecting the energy economy. Amongstthe major economies India continues to be a bright spot with its economy growing at ahealthy rate of 7.6% in 2015-16 supported by push in the reforms process good performanceof goods and services sector and macroeconomic stability.

Despite the volatility in the global market we remained committed in managing businessrisk and protecting stakeholder's interest. Our consistent focus has been on improvingoperational efficiencies in refining and marketing activities and adopting innovativemeasures and initiatives to consolidate our position in the refining and petrochemicalbusiness.

I am delighted to share that your Company has achieved a positive financial andoperational performance. During the year 2015-16 MRPL processed 15.53 MMT of crude oilcorresponding to 103.5% of capacity utilization which was possible by ensuring that allour phase-III units operated in full capacities.

MRPL has achieved a turnover of '50864 crore and earned a net profit of '1148.16 croreduring 2015-16 after setting off losses of the first three quaters of the financial year.

Amidst increased completion in the market we are riding on the strength ofcontinuously expanding our market spread in the direct sales segment of petroleum productsin the states of Karnataka Kerala and few other states also. MRPL has been successful ingaining significant market share and enhancing direct customer base for products such asBitumen Fuel Oil Sulphur Diesel Petcoke and mixed Xylene in its refinery zone.

Your company has inherent core values ingrained in its fabric of being an ethical andreliable partner. With the positive outlook for the Indian economy and increasing demandin the transportation sector we have drawn up ambitious plans for consolidating ourretail business. We are optimistic of setting up sizable number of retail outlets in nearfuture.

In the petrochemical business with a view to extract maximum value from everymolecule the Poly-propylene plant of MRPL was commissioned in June 2015 and dedicated tothe nation by Honorable Minister for Petroleum & Natural Gas Shri Dharmendra Pradhan.The company has been successful in establishing itself as a dominant player in thepolypropylene market in the south zone by achieving excellent sales performance of itspolypropylene supplies.

India is witnessing strong economic growth led by consumption and in line with theexpansion of the economy domestic demand for energy is also expected to increase. MRPLhas aligned itself with such growth trends and has planned various projects for creatinginfrastructure which will facilitate logistics value additions and profitabilityimprovements. The details of various projects are placed in the Board's Report. I am happyto share with you that Government of Karnataka

has allocated 1050 acres of land adjoining to the existing refinery for upcomingprojects of your Company.

MRPL has been supplying it entire quantity of Diesel and Petrol in the Bharat-IV gradeto the domestic market. Improvement in the quality of fuel helps us in improving theenvironment and reducing pollution. Your Company in line with the directives of theGovernment has drawn up the required plans for implementing upgradation projects toproduce BS VI grade of fuels by 2020.

MRPL had acquired majority stake in ONGC Mangalore Petrochemicals Limited (OMPL) andthe process for complete merger of OMPL with MRPL is in progress. The subsidiary of yourCompany OMPL during the financial year has achieved the turnover of '4188.87 crore. Themerger of OMPL with your Company will be a world class Integrated Refinery andPetrochemical complex.

Your Company has established itself as a valuable and responsible corporate citizen andremains committed for the inclusive growth of society and community through its variousCorporate Social Responsibility / Sustainable Development initiatives. We have beencommitted in supporting projects for eradication of hunger and malnutrition promotingeducation art and culture healthcare destitute care and rehabilitation environmentalsustainability disaster relief and rural development projects.

Under Swach Bharath Abhiyan programme of Government of India MRPL has taken upconstruction of 54 toilets in 31 Government and Government Aided Schools in the State ofKarnataka at a cost of '1.85 crores. MRPL has associated with Ramakrishna Mutt Mangalorein their 40 week long "Swach Mangaluru" Abhiyan project with a financialassistance of '14 lacs. MRPL has also undertaken a number of cleaning activities in andaround the refinery alongwith Employees Dependants and MRPL DPS students.

Safety receives the highest attention from all levels of Management and continues to bea top priority for your company. MRPL has remained committed in providing a safe workplaceto its employees and contractor for safety of communities living in the vicinity of therefinery and safeguarding the environment.

Due emphasis is being given for green and low carbon growth vigorously implementingenergy-saving emission reduction clean energy development projects. The Company plans togenerate solar energy as a part of its alternate energy drive which will also help inmeeting its renewable energy commitments.

We are consolidating our position in potential hydrocarbon value chain optimizationavenues for sustainable development. We are focused on value creation from low valuehydrocarbons such as pet-coke refinery offgas and internal fuel oil. Efforts are on theanvil to exploit such potentials.

Your Company believes that human resources are most valuable resources for achievingand accomplishing the expectations of the stakeholders. MRPL is fortunate to have adedicated team who are passionate about their work and the company ensures that itcontinues to nurture them by providing them a good working environment with equalemphasis on employee welfare and employee relation initiatives. An Advanced StrategicLeadership Program (ASLP) named "Project Uttisht" in collaboration with IIMUdaipur was undertaken to train 100 middle and senior level executives of the Companyduring the year.

Going forward I am convinced that MRPL with the support of its stakeholders will beable to address the challenges forging ahead with greater strength to create sustainedvalue for our shareholders society and our Nation.

I would like to place on record my sincere appreciation to the Board of DirectorsMinistry of Petroleum & Natural Gas Government of India State Government ofKarnataka for their continued guidance. I would also like to express my gratitude to allour employees and all the stakeholders for their continued support patronage trust andconfidence.

(D.K.Sarraf)
Chairman
Place: New Delhi
Date: 03/08/2016