ONGC refiner net down 6.3 percent

May 27th, 2009 - 3:23 pm ICT by IANS  

New Delhi, May 27 (IANS) Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of state-run Oil and Natural Gas Corp (ONGC), has recorded a 6.3 percent drop in profits in 2008-09 at Rs.1,192.54 crore, down from Rs.1,272.23 crore earned the previous fiscal.
“In 2008-09 we suffered a huge inventory loss… it has already bottomed out. We don’t anticipate a further inventory loss this fiscal,” MRPL managing director Uttam Kumar Basu told reporters Wednesday.

The refinery company, in which ONGC holds a 71.62 percent stake, however, reported better performance in the fourth quarter of last fiscal, comparing to the like period the year before.

The January-March quarter profit stood at Rs.607.62 crore, up from Rs.225.33 crore in the fourth quarter of 2007-08.

MRPL has posted 16.9 percent growth in the net turnover at Rs.38,284.42 crore as against Rs.32,735.72 crore in 2007-08.

Basu said gross refining margin of the company was 5.32 dollars/barrel in 2008-09.

He added that the demand was high in the current fiscal. “Domestic demand is bullish and everything we produce is getting absorbed.”

ONGC chairman R.S. Sharma, who was also present at the press conference, said the parent company has no plans to disinvest shares.

Earlier there were reports that the exploration giant was planning to sell stake to raise resources.

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