MRPL Q2 Results Review – Volatile Macro Environment Puts A Dent On Earnings: Motilal Oswal

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Mangalore Refinery and Petrochemicals Ltd. reported a miss on our Ebitda and profit after tax estimates, with the company posting a gross refining margin loss of $4.46/barrel of oil.

Refining throughput stood at 3.96 metric million tonne (versus our estimate of 3.22 mmt; 3.24 mmt in Q2 FY22 and 4.29 mmt in Q1 FY23).

MRPL achieved its highest aviation turbine fuel production in September 2022 (178 thousand metric tonnes versus previous peak of 170 tmt in December 2018).

Reformate Cargo of 30 tmt from aromatic complex was dispatched for the first time in August 2022. MRPL also achieved its highest ever sulphur dispatch of 36.76 tmt in the domestic market in Sep-22.

Singapore GRM declined to $7.1/barrel of oil QoQ in Q2 FY23, led by a decline in all the product cracks including gasoline, gasoil and ATF.

This was in sharp contrast to what we saw in Q1 FY23 (SG GRM at $21.4/ bbl) and highlights that a sustained good performance remains a concern given the highly volatile macro environment at present.

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