JOIN USMangalore Refinery and Petrochemicals (MRPL), a subsidiary of ONGC is sitting on a debt of Rs 8,000 crore. The debt has prompted the company to not issue dividend.
Announcing the company’s results for the first time in Bengaluru, MRPL MD H Kumar said, “This year we have not announced any dividend owing to future expansion plans, we have completed phase-III project, so a debt of Rs 8,000 crore is sitting on our books. May be this year we have deferred, but for next year we might take appropriate call.”
Meanwhile, MRPL on Thursday reported a 15.6% rise in the March quarter net profit on the back of higher margins on turning crude oil into fuel. Net profit of Rs 1,353 crore in January-March was 15.6% higher than Rs 1,170 crore net profit in the same period a year ago, the company said.
MRPL made $8.24 on turning every barrel of crude oil into fuels like petrol and diesel, as opposed to a gross refining margin (GRM) of $6.97 per barrel in fourth quarter of the previous 2014-15 fiscal year.
“The improvement in GRM is mainly on account of products like polypropylene and pet coke generated out of the new phase-III units and increase in throughput,” MRPL said.
Turnover was higher at Rs 13,477 crore in the fourth quarter of 2015-16 financial year as compared to Rs 13,156 crore.
The company turned 4.52 million tonnes of crude oil into fuel in Q4, up from 4.12 million throughout in the same period, a year ago.