Mangalore Refinery and Petrochemicals Ltd (MRPL) declared a net loss of Rs 1,596 crore and negative Gross Refining Margin (GRM) of $ 4.52 per barrel during the fourth quarter of 2019-20.
The total throughput of the refinery stood at 3.83 million tonnes in the Q4 of 2019-20 as against 4.29 million tonnes in the corresponding period of the previous financial year. During the Q4 of 2019-20, the gross turnover of the company stood at Rs17,540 crore (Rs 17,744 crore during the corresponding period last year), and exports at Rs 3,105 crore (Rs 6,955 crore during the corresponding period last year).
A press release said that the outbreak of COVID-19 pandemic globally and the resultant lockdown in many countries, including India, has impacted the business of the company.
Consequently, lower demand for crude oil and petroleum products has impacted the prices and refining margin globally.
As the petroleum products are under essential services, the refining operations of the company continued during the lockdown period. Due to the lockdown, there was reduction in sales for the company, it added.
MRPL declared a net loss of Rs 2,708 crore in the financial year 2019-20.
On the future outlook, the company said that the lockdown of COVID-19 is continuing for the financial year 2020-21 and the company is continuing its operation with current lower demand and margins as these products are falling under essential goods and services.
The management is expecting that demand for products will improve after the 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 a long term basis/on the useful life of the assets/ on long term financial position etc. though there may be lower revenues and refinery throughput in the near future, it said.