Mangalore Refinery and Petrochemicals (500109) Q4 04/05 earnings summary

Executive summary

• FY05 delivered record throughput, 122% capacity utilization, record turnover of Rs. 206,925.50 million and net profit of Rs. 8,797.58 million; accumulated losses were wiped out.

• Maiden dividend proposed: Re. 1 per equity share (10%) and 0.01% on preference shares; total payout Rs. 1,752.62 million, excluding dividend tax of Rs. 245.81 million.

Financial highlights

• Turnover rose 64% YoY to Rs. 206,925.50 million; net sales excluding excise were Rs. 185,083.35 million versus Rs. 113,906.44 million.

• Profit before tax increased to Rs. 14,608.74 million from Rs. 5,745.04 million; net profit rose 91.5% to Rs. 8,797.58 million from Rs. 4,594.15 million.

• Profit before interest, depreciation and tax was Rs. 20,991.63 million; interest and finance charges fell to Rs. 2,296.19 million from Rs. 3,734.17 million.

• Exports reached Rs. 61,913 million, up 38% YoY; export benefits recognized in other income were Rs. 1,366.70 million versus Rs. 2,411.64 million.

Outlook and guidance

• Plans target refining capacity expansion from 9.69 MMTPA to 15 MMTPA; feasibility work also considers capacity above 15 MMTPA.

• FCCU, aromatic and olefin complexes are planned to increase value addition; the ISOM project for Euro IV petrol production was awarded for Rs. 2,670 million and was progressing on schedule.

• Domestic product demand was expected to grow 4% annually, with surplus domestic refining capacity potentially absorbed within 3–4 years.

• Energy conservation projects were expected to reduce fuel consumption by 25,000 MT annually, equivalent to estimated savings of Rs. 260 million per year.