ADVERTISEMENT

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

It reported a miss on our Ebitda and profit after tax estimates, with the company posting a GRM loss of $4.46/barrel of oil.

<div class="paragraphs"><p>A hydrocracker refinery plant of MRPL. (Source: Company website)</p></div>
A hydrocracker refinery plant of MRPL. (Source: Company website)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

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.

Click on the attachment to read the full report:

Motilal Oswal MRPL Q2FY23 Results Review.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.