New Delhi: Mangalore Refinery & Petrochemicals Ltd (MRPL) posted a 92% drop in quarterly profit and a senior official said that the outlook was downbeat because of falling prices of oil and petroleum products.
“Because crude price is going down, so our inventory value is also going down,” Finance Director L K Gupta said, adding that the December quarter outlook was ‘very depressed’.
MRPL, a unit of state-run explorer Oil and Natural Gas Corp, said that the net profit slumped to Rs249.2 million ($5 million) in the fiscal second quarter ended 30 September from Rs3.32 billion a year earlier.
The fall was largely due to an inventory loss of Rs6.46 billion caused by a drop in crude oil and petroleum product prices from August, the company said in a statement.
Its gross refining margin slumped to $2.34 per barrel from $6.11 in the year-earlier quarter, it said.
In comparison, the benchmark Asian Dubai crack margin had averaged about $5.8 in the period.
Total revenue rose to Rs134.65 billion from Rs76.55 billion, with exports climbing to Rs40.39 billion from Rs27.15 billion.
The company said that the refinery output rose to 3.29 million tonnes from 3.22 million tonnes.
Gupta said that MRPL would keep a crude distillation unit (CDU) shut for 21 days for planned maintenance that began on 18 October.
The CDU has a capacity to process 3.7 million tonnes a year, or about 74,000 barrels per day.