Mangalore Refinery and Petrochemicals Ltd (MRPL) today reported a net loss of Rs 61.90 crore in the March quarter on the back of sharp drop in refining margins.

MRPL, a subsidiary of state explorer Oil and Natural Gas Corp (ONGC), reported a net loss of Rs 61.90 crore in the January-March quarter as compared to Rs 601.97 crore profit in the same period of the previous fiscal, the company said in a statement here.

The company earned USD 1.98 on turning every barrel of crude oil into fuel as compared to USD 7.07 per barrel gross refining margin (GRM) in January-March quarter of 2011-12.
Also, it had an inventory loss of Rs 26 crore in the quarter.

Turnover was up 17 per cent to Rs 19,462 crore with exports rising 40 per cent to Rs 9,676 crore.

For the full 2012-13 fiscal, MRPL reported a net loss of Rs 756.91 crore as opposed to a net profit of Rs 908.58 crore in the previous financial year.

For the full fiscal, GRM stood at USD 2.45 per barrel as compared to USD 5.60 a year ago. Also, it had an exchange loss of Rs 536 crore and an inventory loss of Rs 232 crore in 2012-13.

Turnover was up 20 per cent at Rs 68,834 crore. MRPL processed 21 per cent more crude oil at 4.12 million tonnes in fourth quarter of 2012-13 and 12 per cent more at 14.40 million tonnes in the full fiscal.

The company said it has begun diesel sale to bulk consumers following government's decision in January asking bulk consumers like railways and state road transport corporation' to pay market price for the fuel.

"The turnover of direct marketing stood at Rs 2,583 crore as compared to Rs 2,755 crore," it said, adding MRPL was once again considering entering into retail petrol pump business after the recent hikes in diesel prices.

The company had set up a couple of retail outlets in Karnataka before freezing expansion as it was unable to compete with subsidised rates offered at pumps owned by state-owned retailers.

"In view of the losses for the financial year 2012-13, the Board of Directors did not consider to declare any dividend (due to restriction as per statute for declaration of dividend out of accumulated reserves)," the statement said.