MRPL Focuses on Setting up its Retail Outlets

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MRPL Focuses on Setting up its Retail Outlets

The Board of Directors of Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary company of ONGC and Schedule “A” Mini Ratna Category I Company during its 235th Meeting held on February 01, 2021, approved its Standalone and Consolidated Unaudited Financial Results for the Third Quarter (Q3 FY’21) and Nine Months (IXM FY’21) ended on December 31, 2020.

Financial Performance Financial Performance Performance for Q3FY’21:

MRPL declared Net Loss of Rs 71 crore and GRM of 3.26 $/bbl. The capacity utilization gradually improved during the current quarter as compared to the previous quarter of the current year. Management has assessed the potential impact of COVID-19 based on the current circumstances and expects no significant impact on the continuity of the operations of the business on a long term basis. As regards the recoverability of assets and financial resources, the performance of contractual liability and obligations, ability to service the debts and liabilities, the Company expects to fully recover the carrying amounts of the assets and comfortably discharge its debts and obligations. The Company is positive on long-term business outlook as well as its financial position. However, the Company is closely monitoring any material changes to future economic conditions.

The Board of Directors in its 234th Meeting held on January 20, 2021, has approved the Long Term Settlement pertaining to wage revision and other related benefits of the Non-Management staff which was due for revision effective from January 1, 2017.

In continuation to the Board approval in the 232nd meeting for the acquisition of 1,24,66,53,746 equity shares of Rs 10 each of ONGC Mangalore Petrochemicals Limited (OMPL), a subsidiary of the Company from Oil and Natural Gas Corporation Limited (ONGC) (an existing shareholder of OMPL) held on October 19, 2020, subsequently, a Share Purchase Agreement (SPA) was executed with ONGC for the acquisition of 124,66,53,746 equity shares of Rs 10 /- each of OMPL from ONGC. An amount of Rs 1,216.73 crore was paid to ONGC towards consideration for the acquisition of 124,66,53,746 equity shares at a price of Rs 9.76 per share. As per the SPA, ONGC transferred 124,66,53,746 shares of OMPL to MRPL’s Demat Account on January 1, 2021. With this, the shareholding of MRPL in OMPL has increased to 99.9998% w.e.f. January 1, 2021. The details are available on the websites of NSE and BSE at www.nseindia.com and www.bseindia.com respectively and on the Company’s website at www.mrpl.co.in.

Financial Highlights for the Third quarter Q3FY’21(Q3FY’20):

• Gross revenue from operations Rs 14,136 Crore (Q3 FY’20 Rs 16,745 Crore).
• Loss before Tax Rs 104 Crore (Q3 FY’20 Loss before tax Rs 45 Crore).
• GRM of 3.26 $/bbl (Q3 FY’20 GRM Rs 3.19 $/bbl).

Financial Performance  for IXM FY’21:

MRPL declared a Net loss of Rs 555 crore and GRM of 2.25 $/bbl. The capacity utilization gradually improved during the current quarter as compared to the previous quarter of the current year. Management has assessed the potential impact of COVID-19 based on the current circumstances and expects no significant impact on the continuity of the operations of the business on a long term basis. As regards the recoverability of assets and financial resources, the performance of contractual liability and obligations, ability to service the debts and liabilities, the Company expects to fully recover the carrying amounts of the assets and comfortably discharge its debts and obligations. The Company is positive on long-term business outlook as well as its financial position. However, the Company is closely monitoring any material changes to future economic conditions.

Financial Highlights for the Nine months IXM FY’21  (IXM FY’20):

• Gross revenue from operations Rs 30,231 Crore (IXM FY’20 Rs 43,206 Crore).
• Loss before Tax Rs 843 Crore (IXM FY’20 Loss before tax Rs 1,682 Crore).
• GRM of 2.25 $/bbl (IXM FY’20 GRM Rs 1.41 $/bbl).

Physical and Financial Performance:

MARKETING EFFORTS

MARKETING EFFORTS: Many initiatives are taken to improve the revenue available from marketing margins.

Domestic sales of petroleum products are increased by entering into new agreements with Oil Marketing Companies. To capture retail margins, MRPL is focused on setting up its own retail outlets and the same is being expedited.


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