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| 21st AGM held at Mangalore approves the Accounts for the year ended 31st March, 2009 |
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September 19, 2009 |
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The Shareholders of MRPL in its 21st AGM held today at Mangalore approved the Accounts for the year ended 31st March, 2009.
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1. Highlights of FY 2008-09 results as compared to FY 2007-08
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• Highest-ever Refinery Crude Thruput at 12.586 MMT (up from 12.547 MMT)
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• Highest-ever processing of 2.916 MMT (capacity utilization of 121%) in Hydrocracker, the major secondary processing unit.
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• Highest-ever turnover at Rs.42,719 Crore, up 14% from Rs.37,339 Crore, with export earnings of Rs.11,636 Crore during the year.
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• Company has successfully completed 637 days of accident free operations as on 31.03.2009.
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• The refinery has achieved the lowest energy index of 59.07 MBN.
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• Domestic Direct marketing sales reached Rs.2,353 Crore, an increase of 10% from Rs.2,137 Crore in previous year.
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• The Company earned a net Profit After Tax of Rs.1193 Crore, marginally lower, against Rs.1272 Crore previous year, as no MAT credit was available during the year as against Rs.104 Crore in the previous year.
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2. Dividend
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Despite slightly lower Net Profit of Rs. 1193 Crore (Previous year Rs. 1272 Crore), the shareholders have approved a dividend of 12%, the same as last year on Equity capital of Rs.17,52.65 crore, which will absorb Rs.246 Crore, including Rs.36 Crore as tax on dividend. The shareholders have also confirmed a dividend of 0.01% on Preference Shares of aggregate value of Rs. 9.19 crore for the financial year ended 31.03.2009.
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3. Financial performance
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MRPL has achieved an excellent performance in terms of physical parameters during the financial year 2008-09. The company has achieved a turnover at Rs.42,719 Crore, up 14% from Rs.37,339 Crore. The company earned a net profit of Rs.1,193 Crore as compared to Rs.1,272 Crore in the previous year, after providing for Interest and finance charges of Rs.143 Crore (Rs.148 Crore), depreciation of Rs.382 Crore (Rs.378 Crore) and tax liability of Rs.619 Crore (Rs.461 Crore net of credit for MAT paid in earlier year). The exports during the year were Rs.11,636 Crore (Rs.11,141 Crore).
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4. Awards and Recognitions
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• Best Exporter Award (Gold) – 2008 for exporting products through New Mangalore Port Trust, by Federation of Karnataka Chamber of Commerce and Industry.
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• "Environment Excellence Award" for 2008 by Greentech Forum, New Delhi.
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• Special Encouragement Award from the Forum of Women in Pubic Sector, a body comprising of women employees under the aegis of SCOPE for its women development efforts during 2008.
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• The “Oil & Gas Conservation Award-2008” for Furnace & Boiler Insulation Effectiveness & Efficiency” instituted by Centre for High Technology (CHT).
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• “Energy Efficiency Unit” award in the National Award for Excellence in Energy Management –2008 under Refinery category instituted by the Confederation of Indian Industry.
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• Oil Industry Safety Award (II prize) for the year 2008-09 and as well as award for Most Safe Refinery in last three years by Oil Industry Safety Directorate, MoP&NG.
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• Second prize in Jawaharlal Nehru Centenary Award for energy performance during 2007-08.
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5. Accreditation
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• ICRA has reaffirmed the Issuer Rating of "IrAAA" (pronounced as IR triple A) to the Company indicating the highest-credit quality rating assigned by ICRA.
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• ICRA has assigned “LAAA” (pronounced as L Triple A) rating to the Fund Based Working Capital Limits of Rs.900 Crore of your company. This rating is the highest credit quality rating assigned by ICRA. ICRA has also assigned a "A1+" (pronounced as A one plus) rating to the Non-Fund Based limits of Rs. 5500 Crore of your company. This rating is the highest-credit-quality rating assigned by ICRA to short term debt instruments.
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• CRISIL has also reaffirmed the domestic corporate credit rating of "CCR AAA" (Pronounced as "CCR Triple A") to the Company. This rating indicates highest degree of strength with regard to honouring debt obligations.
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• The Company has been ranked 8th in the list of 500 companies (Public and Private Sector) published by Capital Market in November, 2008, based on Turnover for the financial year 2007-08.
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• The Company Secretarial Department of the Company has been accredited with ISO 9001:2008 by M/s. Bureau Veritas Certification (India) Pvt. Ltd. MRPL is the first Indian PSU to get such an accreditation for its Company Secretarial Department.
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6. Status of Project
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a) Phase III Refinery Project
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The Company is implementing Phase III Refinery Project at an estimated capital cost of Rs.12412 Crore with the objective of increasing profitability by increasing the design refining capacity from the existing 9.69 MMTPA to 15 MMTPA, to process more of low price high sulphur / High Acid Heavy Crude Oils, increasing the distillate yield by upgrading low value Black Oils, producing value added products like Propylene and upgradation of its total diesel pool to superior (Euro III / IV) grade. The implementation of this project is progressing well and the Mechanical completion is expected to be achieved by October, 2011. The company has already placed orders for all the major process units. The total value of orders placed upto 9th September, 2009 is Rs.7,400 Crore.
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b) Polypropylene Project
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The Company’s Phase-III Refinery Project includes putting up a 2.2 MMTPA Petrochemical Fluidised Catalytic Cracking unit (PFCCU) which will produce approximately 450,000 TPA of Polymer grade propylene which could be converted to Polypropylene, another value added product. Polypropylene is the fastest growing thermoplastic product having wide range of both industrial and consumer applications. A polypropylene plant at the refinery complex will trigger investments in the Mangalore SEZ and in Southern region for downstream usage of polypropylene. With a view to capture the opportunity, the Boards of your company, with sanction approval from ONGC (Parent Company) have recently decided setting up of Polypropylene Unit integrated with the Phase III Refinery Project at an estimated capital cost of Rs.1803.78 Crore. The project is expected to be mechanically completed by 31st January, 2012. M/s. Engineers India Ltd., have been engaged to implement this project under Open Book Execution (OBE) methodology.
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c) Single Point Mooring project (SPM)
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The Company is considering to set up a SPM facility in the sea nearby to Mangalore Port with an objective to receive crude in VLCC (very large crude carrier) tankers. The same facility can also be used for receipt of crude for Indian Strategic Petroleum Reserves (ISPR) being set up by Government of India at Mangalore very near to our refinery. The draft DFR has been received and the independent financial appraisal of the Project is in progress. Implementation of this project is expected to considerably reduce the crude transportation cost and improve the profitability, offer flexibility to receive West African and Venezuelan crudes that can be economically processed, apart from overcoming the capacity limitations in the existing NMPT jetties.
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d) Aromatic Project
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As you are aware, an Aromatic Complex is being set up by ONGC Mangalore Petrochemicals Ltd (a SPV Company of ONGC and your company) in Mangalore SEZ, to produce Paraxylene and Benzene using the surplus Naphtha feed stock from MRPL Refinery. The implementation of the project is progressing satisfactorily and the orders for major process units are expected to be placed in next couple of months.
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7. Corporate Social Responsibility
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As a good corporate citizen, the company is committed to the well being of the communities around the refinery area. In this direction, company has taken numerous CSR initiatives in the areas of education, health & sanitation, drinking water, infrastructure development, women empowerment & welfare, SC/ST welfare measures, Bahujan Samrakshan, development of MRPL Rehabilitation Colony, additional Jala Sechana Samrakshan etc.
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The total amount spent during the year on CSR initiatives amounted to Rs.421 lakhs as compared to Rs.151 lakhs during the previous year. The Budget for the year 2009-10 for CSR activities has been more than doubled at Rs. 1000 Lakhs.
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Speaking on the occasion of Shri R. S. Sharma, Chairman complimented the Team MRPL for sustained all round excellent performance during the year and thanked all the stakeholders for their unstinted support and confidence in MRPL.
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Corporate Communication
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MRPL
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