The Board of Directors of Mangalore Refinery and Petrochemicals Limited, a subsidiary Company of ONGC and a Category I Mini Ratna, approved its un-audited results for the second quarter of Financial Year 2014-15. The Company recorded lower physical performance during the Q2 of FY14-15. The company has posted loss mainly due to higher fuel consumption on account of stabilization of newly added units and also higher inventory loss. The Company posted a negative GRM of 4.04$/ bbl in Q2 FY 14-15 as against positive GRM of 5.04 $/bbl in Q2 FY-13-14.

The summarized performance results of Q2FY14-15 and H1 FY14-15 compared to the corresponding period is as follows:

FINANCIAL PERFORMANCE REVIEW AND ANALYSIS:

A. Analysis of results Q2 FY 2014-15

The Company achieved a throughput of 3.47 MMT for the Q2 FY 2014-15 as against 3.69 MMT in Q2 FY 2013-14 (reduction of 6%). The decrease in throughput is mainly due to plant upsets while commissioning of new units, resulting in non availability of secondary processing units .

MRPL achieved a turnover of Rs 16770 Crore (Exports Rs 6079 Crore) for the Q2 FY 2014-15 as against Rs19554 Crore (Exports Rs 10288 Crore) during the corresponding quarter of FY 2013-14 (decrease of 14%)

MRPL posted net loss after tax adjustments for Q2 FY 2014-15 of Rs951 Crore (after considering Rs112 Crore as depreciation, Rs112 Crore as Interest Cost, Net Foreign Exchange loss of Rs482 crore). The profit for the corresponding second quarter of 2013-14 was PAT of Rs236 Crore (after considering Rs176 Crore as depreciation, Rs93 crore as Interest Cost and Foreign Exchange loss of Rs249 crore).

B. Analysis of results H1 FY-2014-15

The Company has achieved a throughput of 6.67 MMT for half year ended 30th September, 2014 as against 6.96 MMT during earlier period of last year (reduction of 4%).

MRPL has achieved a turnover of Rs 33423 Crore (Exports Rs 11825 Crore) for the half year ended 30th September, 2014 as against Rs35688 Crore (Exports Rs 17216 crore) (decrease of 6%).

MRPL has posted loss after tax of Rs 988 Crore (after considering Rs207 Crore as depreciation, Rs165 Crore as Interest Cost, Net Foreign Exchange loss of Rs 508 crore). The loss after tax for the corresponding half year of 2013-14 was Rs 218 Crore (after considering Rs345 Crore as depreciation, Rs170 crore as Interest Cost and Foreign Exchange loss of Rs 766 crore).

MARKETING INTITIATIVES:

The Company has retained its strong market presence in its Refinery zone for products (viz. Bitumen, CRMB) and has also been able to get a good market reach for Petcoke.

PHASE III REFINERY PROJECT:

MRPL Phase III Expansion and up gradation project is complete with commissioning of Petrochemical Fluidized Catalytic Cracking unit (PFCCU). During the second quarter of 2014-15 the company commissioned PFCC unit, third train out of 3 trains of Sulphur Recovery Unit (SRU), DCU- coke handling system, Raw Water Treatment, LPG mounded Bullets and other related offsite facilities for functioning of the above. The Captive Power Plant is operating and is under stabilisation.

The physical progress of Polypropylene unit (PPU) is 97.00% and is expected to be mechanically completed during the third quarter of 2014-15.

CORPORATE SOCIAL RESPONSIBILITY:

The Company, as a socially conscious corporate continues its ‘Samrakshan’ programme. The Company, during the quarter has committed its causes to Govt. of India by way of “Swachh Vidhyalay Abhiyan Programme” by rolling out the projects to built Toilet Blocks for 50 schools in current year at an estimated outlay cost of Rs.1.85 Crore.