Mangalore Refinery & Petroleum (MRPL) has reported a robust performance for the second quarter, marking a significant recovery from the previous quarter. The company's financial results and operational highlights underscore its resilience and strategic positioning in the refining sector.

Financial Highlights

MRPL posted impressive financial results for Q2:

The company's revenue from operations reflected the rise in product cracks and base crude prices compared to the previous quarter.

Operational Performance

MRPL's operational performance showed significant improvement:

• Throughput: Processed 4.4 MMT of crude and other feedstocks, recovering from 3.5 MMT in Q1 after completing turnaround maintenance.
• Fuel and Loss: Stood at 10.42%, expected to normalize to around 10% for the remaining fiscal year.
• Crude Sourcing: Russian crude comprises 30-40% of the sourcing basket, with management expressing confidence in continued economic sourcing despite geopolitical concerns.
• Export Sales: Account for approximately 40% of total turnover.

Product Yield

The company reported the following product yield for Q2:

Retail Expansion

MRPL is actively expanding its retail presence:

• Currently operates 185 retail outlets across Karnataka, Kerala, and Tamil Nadu.
• Targets to reach 250 outlets by the end of the fiscal year.
• Plans to add 100-130 retail outlets annually going forward.
• All new outlets will feature at least one alternative fuel option, such as CNG or EV charging.

Future Outlook

• MRPL expects Q3 throughput to exceed 4.43 MMT.
• The company anticipates strong performance with improved product cracks in October.
• Management remains optimistic about domestic demand growth, particularly in MS (petrol) and HSD (diesel) segments.

Strategic Initiatives

• Implementing a Sustainable Aviation Fuel (SAF) project with a target production of 20 kilolitres per day, aiming to meet the 1% mandate by January 2027.
• Exploring co-processing options for SAF production in existing units.
• Focusing on decarbonization efforts, including a power input project expected to reduce carbon emissions, scheduled for commissioning by mid-next year.

MRPL's strong Q2 performance, coupled with its strategic initiatives in retail expansion and sustainable fuel production, positions the company well for continued growth in the evolving energy landscape. The management's confidence in sourcing economics and anticipated strong product cracks suggests a positive outlook for the coming quarters.

Mangalore Refinery & Petroleum (MRPL), a subsidiary of Oil and Natural Gas Corporation Limited, has announced plans for significant retail expansion and provided insights into its operational outlook. The company, known for its refining and petrochemical operations, is making strategic moves to strengthen its presence in the retail fuel market.

Retail Expansion Strategy

MRPL has set an ambitious target for its retail outlet network:

This expansion plan signals MRPL's intent to capture a larger share of the retail fuel market and diversify its revenue streams.

Financial and Operational Guidance

The company has also provided guidance on its financial and operational metrics:

It's important to note that the capital expenditure guidance excludes potential Phase 4 expansion, indicating possible future growth initiatives.

Performance Outlook

MRPL expects positive performance in the coming months, citing stronger Gross Refining Margins (GRMs) in October. This outlook suggests that the company may be well-positioned to capitalize on favorable market conditions in the refining sector.

Investor Communication

In line with regulatory requirements, MRPL held a conference call to discuss its unaudited financial results for the quarter and half-year ended September 30. The company has made both audio and video recordings of this call available on its website, demonstrating its commitment to transparency and investor communication.

As MRPL moves forward with its expansion plans and operational strategies, investors and industry observers will be keen to see how these initiatives impact the company's market position and financial performance in the competitive oil and gas sector.