The Board of MRPL in its meeting held on 20th January 2009 at New Delhi approved the Financial Results for the third quarter and Nine months ended 31st December 2008

3rd Quarter Performance :

1. Throughput during the quarter was 3.11 MMT (capacity utilization 128 %) up 3% as compared to 3.02 MMT (125 %) for the corresponding previous quarter.
2. Turnover during the quarter was Rs. 8,558 crore down 8% as compared to Rs. 9,269 crore during the corresponding previous quarter. The Net Loss after tax for the quarter was Rs. 285 Crore as compared to a net profit of Rs 347 crore for the corresponding previous quarter, after providing for interest and finance charges of Rs. 36 crore (Rs.36 core), depreciation of Rs. 96 crore (Rs.95 crore) and reversing of tax provision of Rs. 149 crore made in earlier quarters due to Loss in current quarter (against tax provision of Rs. 101 crore in corresponding previous period). The net loss after tax during the quarter was mainly due to inventory valuation loss of approximately Rs. 1,062 crore (net of tax), on account of sharp reduction in crude oil and petroleum product prices during the quarter.
3. The exports during the quarter were lower at Rs. 2,458 crore as compared to Rs. 2,741 crore for the corresponding previous quarter due to reduction in product prices. However, the exported products quantity during the quarter was 1.30 MMT up by 22 % as compared to 1.07 MMT for the corresponding previous quarter.
4. GRM during the quarter is US $ (2.77) per barrel of crude processed as against US$ 7.69 per barrel during the corresponding previous quarter mainly due to inventory losses.

Nine Months Performance :

1. Turnover during the nine months ended 31st December 2008 was Rs. 35,089 crore up 32% as compared to Rs. 26,527 crore during the corresponding period. The Net Profit after tax for the nine months period was Rs. 585 Crore (Rs. 1,047 crore), after providing for interest and finance charges of Rs. 111crore (Rs. 112 core), depreciation of Rs. 288 crore (Rs.283 crore) and tax provision of Rs. 343 crore (Rs. 377 crore).
2. Exports during the nine months period were Rs. 9,349 crore as compared to Rs. 8,367 crore for the corresponding previous period.
3. Throughput during the 9 Months period was 9.17 MMT as compared to 9.40 MMT for the corresponding previous period, mainly due to planned shutdown of phase II crude unit of 6 MMTPA during April 2008 for about 10 days.
4. GRM during the period is US $ 4.77 per barrel of crude processed as against US$ 7.47 per barrel during the corresponding previous period mainly due to Inventory valuation Losses.

AWARDS, RECOGNITION AND ACHEIVEMENTS :
MRPL has received KCCI Export Award 2008 as super star achiever in Manufacturer category conferred by Kanara Chamber of Commerce and Industry, Mangalore. (January 2009)

MARKETING :
In view of the heavy under recoveries in marketing of Petrol & Diesel and on the advice of Ministry of Petroleum & Natural Gas, the company had put on hold setting up of retail outlets excepting the two outlets where the construction was nearing completion. In view of the sharp reduction in Crude Oil prices, leading to Retail Sales Margin becoming positive, the company is looking into the possibilities of reviewing the Retail plans. However this will depend upon the long term price scenario which is quite uncertain at present.

PHASE III - REFINERY PROJECT :
MRPL has initiated an ambitious Refinery Expansion and Upgradation project (Phase III- Refinery project). The objective of the project is to expand its refining capacity to 15 MMTPA (from 9.69 MMTPA), increase the distillate yield by minimizing black oil production and to upgrade entire Diesel to Euro III/ Euro IV grade. The project will also enable MRPL to process cheap and highly acidic crudes (opportunity crudes) thereby improving the overall economics. The product slate will include value added products such as Propylene.

In its meeting held on 1st Dec 2008, ONGC board had approved the implementation of the project with a revised cost estimate of Rs 12412 Crores to be mechanically completed by Oct 2011. The revised estimate and financial feasibility of the project was done by M/s Axis Bank. The project management consultant is M/s Engineers India Ltd (EIL). The project will be funded through 2:1 debt-equity ratio. The equity portion will be financed using MRPL’s internal accruals and debt would be raised from the market. About 88% of the plant and equipment will be sourced indigenously and the balance will be imported.

Meanwhile, Phase III Refinery project has completed major milestones such as execution of PFCC and Sulfur Recovery Unit job awarded to M/s.EIL through OBE route, execution of CDU/VDU and ancillary units through conventional route was awarded to M/s Jacobs Engineering India (P) Ltd. and award of other major jobs are in advanced stages.

A massive site grading job involving about 1 million cubic meter of earth and rock volume is now progressing in full swing with the availability of land.

MRPL management is closely monitoring the progress of this mega project and it is certain that this endeavor will significantly contribute to the value addition to the share holders of the company.

CORPORATE SOCIAL RESPONSIBILITY :
Maintaining its commitment for Social responsibility, the company has conducted Artificial Limb camp and eye camp, Tailoring classes to women, donated stitching machines to SC/ST women, 5 Fogging machines to the local Gram Panchayats Constructed and donated class rooms for a school at Chelairu costing Rs 4.75 lacs, Building for Women Co-op Dairy Farm costing Rs 5.5 lacs, Building for Coastal readers and writers association costing Rs 6 lacs and a Library building costing Rs 5 lacs in and around refinery area. The Company has also honored freedom fighters from Mangalore.

MRPL officers took on a protest without affecting the normal duty during the OSOA strike (7th – 9th January ‘2009). The refinery operations were normal during this period without any hindrance or upset.

Speaking on the occasion Shri R.S.Sharma, Chairman complimented the Team MRPL for the commendable physical performance during the quarter and thanked all the stakeholders for their unstinted support and confidence in MRPL.