Mangalore Refinery net plummets 92.4 percent

New Delhi, Oct 27 (IANS) Mangalore Refinery and Petrochemicals Ltd (MRPL) saw its net profit diving 92.4 percent in the second quarter due to a steep reduction in international oil prices.

A subsidiary of Oil and Natural Gas Corp (ONGC), MRPL has announced a net profit of Rs.250 million in the second quarter ending Sep 30, as against Rs.3,320 million in the corresponding period last year - reflecting an erosion of 92.4 percent.

The loss is mainly on account of an inventory loss of approximately Rs.6,460 million following a sharp reduction in crude and petroleum products prices since August.

The sharp loss follows the first quarter's sharp rise in profit by 129 percent - largely attributed to the oil price reaching record levels in June-July.

However, its turnover has increased 76 percent to Rs.134.28 billion, from Rs.76.16 billion.

Gross refinery margin had come down to $2.34 per barrel of crude processed, as against $6.11 per barrel in the last corresponding quarter.

According to MRPL's director (finance), L.K. Gupta, the outlook for the current third quarter was "very depressed".

Meanwhile, MRPL has shut down a crude distillation unit for 21 days for planned maintenance since Oct 18. The unit has a capacity to process 3.7 million tonnes a year, or about 74,000 barrels a day.