NRL is planning to ramp up its capacity from 3 to 9 MMTPA (million metric tonnes per annum).
The 27th Annual General Meeting of NRL was held on Monday, through online web conference, keeping in view the current pandemic of COVID-19. The Meeting was presided over by D. Rajkumar, Chairman and Managing Director-Bharat Petroleum Corporation Limited (BPCL) and Chairman-NRL and was attended by S K Barua, Managing Director NRL.
The company stated that its focus is primarily on three major ongoing projects namely the Refining Capacity Expansion Project, Indo-Bangladesh Friendship pipeline(IBFPL) and Bio Refinery Project; which have gained momentum and recorded definitive progress.
The company stated NRL has recently been accorded the Environmental clearance from the Ministry of Environment, Forest & Climate Change for the Refinery Expansion Project on 27th July 2020, which would be the zero date for the Project.
M/s SBI Capital Markets Limited, Mumbai has been appointed for debt syndication of Rs. 15,102 crore for Refinery Expansion Project. Lining up of technical management consultant for Refinery Expansion Project, EPCM for pipeline project, licensors for fluid catalytic cracking gasoline desulphurisation Unit (FCC-GDS) and motor spirit (MS) block and allocation of 200 acres of land to set up crude oil terminal in Paradip are other significant developments in implementation of the integrated mega refinery expansion project.
The 130 km Indo-Bangla Friendship Pipeline (IBFPL) for exporting NRL products from the Siliguri Marketing Terminal to Bangladesh is progressing well.
Also, the country’s first 2G bamboo based bio refinery being executed through a JV with Finnish collaborators has recorded adequate progress on ground.
MD NRL Mr. S K Barua said, “Stringent monitoring of the aforesaid projects taking into consideration lockdowns, travel restrictions, logistic disruptions and migrant worker availability will be critical to ensure their scheduled completion and commissioning.”
The annual dividend paid by the company remained at 150% i.e Rs 15/ per share which was already disbursed as Interim dividend in February 2020. Though giant steps to secure the Company’s future was the highlight of the year, unanticipated bottlenecks and unprecedented volatilities affected bottom lines.
Commenting on the present circumstances, Chairman D Rajkumar said, “The last few months have been tough with most of our efforts focused on adapting to the changing circumstances that have unfolded in the wake of the COVID-19 pandemic. On the positive side, the crisis has thrust upon us opportunities to break free from the conventional ways in which we have been carrying out our business and also to explore other possibilities to stay current and relevant.”
The company stated that NRL’s profitability in year 2019-20 was adversely affected due to inventory losses in the month of March 2020, as Crude Oil prices reached a new low impacted by the pandemic situation. Revenue from operations recorded a dip at Rs. 14,073 crore during the year 2019-20 as compared to Rs. 18,511 crore in the previous year due to lower sales volume and reduction in prices of petroleum products in the international market. Profit before tax decreased to Rs. 1,735 crore during the year 2019-20 from Rs. 3,052 crore in the previous year.
Consequently, profit after tax decreased to Rs. 1,381 crore during the year as compared to Rs. 1,968 crore in the previous year. NRL’s net worth stood at Rs. 5,304 crore as on 31st March, 2020. The Company has a near-zero debt position and favourable credit ratings, making for a strong balance sheet position to raise funds for its upcoming refinery expansion project.
The refinery processed 2,383 TMT of crude oil compared to 2,900 TMT in the year 2018-19, the decline being mainly attributable to refinery turn around undertaken after a gap of 4 years and lower capacity utilization during March 2020 in the aftermath of COVID-19.
During the year 2019-20, the refinery also processed maiden imported Miri Light Crude Oil from Malaysia. Overall, in terms of production efficiency, NRL continues to be in the league of best performing refineries in the country with one of the highest distillate yield, lowest specific energy consumption and high gross refining margin (GRM).
Overall sales volume during 2019-20 was 2,361 TMT against production of 2,300 TMT. Highlight of the year of launch of NRL’s own brand of Food Grade Wax ‘Pristene’ which recorded a sale of 0.5 TMT during the year.
Bulk LPG Tanker unloading facility was commissioned in Numaligarh to facilitate receipt of external LPG input to boost packed LPG production. Additional 4 lakh LPG cylinder could be bottled using the external LPG input.