Mangalore Refinery and Petrochemicals (500109) Q4 03/04 earnings summary

Executive summary

• Turnaround in FY04: net profit of Rs. 4,594.15 million versus a net loss of Rs. 4,118.06 million in FY03; first profitable year after becoming an ONGC subsidiary.

• Refinery processed 10.046 MMT of crude, reaching 104% capacity utilization and surpassing its 9.69 MMT rated annual capacity for the first time.

Financial highlights

• Turnover was Rs. 126,122.24 million, up 46.98% YoY; net profit after tax was Rs. 4,594.15 million versus a loss of Rs. 4,118.06 million.

• Profit before tax was Rs. 5,745.04 million versus a loss of Rs. 6,527.73 million; interest and finance charges fell to Rs. 3,734.17 million from Rs. 5,670.73 million.

• Other income included Rs. 2,556.85 million from early payment of deferred sales tax and Rs. 2,411.64 million in export duty-credit benefits.

Outlook and guidance

• Domestic sales improved after oil marketing companies recognized the refinery’s 9.69 MMT rated capacity in the Industry Logistics Plan, supporting higher realizations.

• Authorized to establish 500 retail outlets; the programme was being coordinated with ONGC’s network.

• Rs. 4,500 million of the ONGC loan had been prepaid during April–July 2004; energy conservation proposals were expected to save 14,000 MT/year of LSHS equivalent.