MRPL slips after reverse turnaround in Q4

Mangalore Refinery & Petrochemicals (MRPL) fell 1.20% to Rs 32.90 after it reported a consolidated net loss of Rs 1887.39 crore in Q4 March 2020 as compared to a net profit of Rs 354.70 crore in Q4 March 2019.

Net sales declined 11.9% year-on-year (YoY) to Rs 13,870.26 crore during the quarter. The announcement was made after market hours yesterday.

On a standalone basis, the company posted a net loss of Rs 1,596.44 crore in the fourth quarter. The company had reported a net profit of Rs 318.87 crore in the same period last year.

Net sales declined 6.7% YoY to Rs 14,132.28 crore during the quarter. The company recorded a negative gross-refining margin (GRM) of $4.52 per barrel in Q4 FY20 as compared to positive GRM of $5.01 per barrel in Q4 FY19.

MRPL said that the outbreak of COVID-19 pandemic globally and resultant lockdown in many countries, including India from 25 March 2020 has impacted the business of the company in Q4 March 2020.

Consequently, lower demand for crude oil and petroleum products has impacted the prices and refining margin globally. Since the petroleum products are under essential services, the refining operations of the company was continued during the lockdown period, MRPL said. Due to lock down there was reduction in sales for the company, the company said.

In terms of the future outlook, MRPL said it expects demand will improve on post-removal of lockdown on stabilisation of COVID-19. 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, though there may be lower revenues and refinery throughput in the near future, it added.

Mangalore Refinery & Petrochemicals is a subsidiary of ONGC and schedule 'A' Miniratna, Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas.

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