MRPL loses ground as losses mount

MRPL is currently the top loser on the BSE, down 2.3% at Rs.42.90, with an intra day low at Rs.42.10. Volumes are at 51,000 shares today compared to 75,000 shares over the past two weeks average.

A subsidiary of ONGC, the stock is deep in the red after the company posted a net loss at Rs.248 crore which though is lower than the loss of Rs.360 crore posted in Q3FY13. Throughput was down from 3.81 MMT to 3.75 MMT (QoQ) due to shut down of phase I and plant upsets during the quarter. The gross refining margin (GRM) of the refinery was in the negative range during the current Q3. The loss would have been higher but for the net forex gain of Rs.189 crore compared to gain of Rs.257 crore for Q3FY13. Higher power and fuel costs plus the fall in its marketing margins also contributed to the fall in its performance.

Additionally, the company has stated that the progressive commissioning schedule of MRPL phase III expansion project has been delayed. The last three major secondary processing units, namely viz delayed coker unit/coker hydro treater and petroleum fluidic catalyst cracking unit including power plant remain to be commissioned. The overall project progress as on January 15 is 99.50%. Work progress of CPP by BHEL continues to be a major factor for delayed commissioning of units. But in a TV interview, the company has stated that once the projects get commissioned, its GRMs, going ahead will surely improve.