Mangalore Refinery and Petrochemicals (500109) Q4 00/01 earnings summary

Executive summary

• FY 2000-01 revenue was Rs. 2,889.15 crore and net loss was Rs. 185.05 crore; Phase II commercial production began on 10 April 2001.

• High debt, weak refining margins and surplus domestic product supply weighed on performance; financial restructuring was initiated.

Financial highlights

• Revenue was Rs. 2,889.15 crore vs Rs. 3,198.06 crore YoY; net loss narrowed to Rs. 185.05 crore from Rs. 299.68 crore.

• Loss before tax was Rs. 267.22 crore vs Rs. 323.00 crore; interest and finance charges were Rs. 237.83 crore vs Rs. 321.98 crore.

• Operating loss after interest, before depreciation and tax, was Rs. 94.36 crore vs Rs. 180.23 crore.

Outlook and guidance

• Phase II commercial production commenced 10 April 2001; dual operating streams and scale economies are expected to support future performance.

• Karnataka incentives for Phase II total up to Rs. 250 crore p.a. for 14 years; Phase II also received crude-oil entry-tax exemption.

• Petroleum-sector deregulation was scheduled for 1 April 2002, with direct marketing rights expected; the request for earlier formula-product rights remained under consideration.

• The 364-km Mangalore-Hassan-Bangalore pipeline was expected to be operational by mid-2002; progress was 84.58% as of 15 July 2001.