2005 - Oil India Limited

OIL beyond territorial barriers
Year 2001-02, 2002-03, 2003-04 & 2004-05 (Nine
Months ended Dec. 2004) is as under: -
Particulars Pre ONGC Post ONGC
2001-02 2002-03 2003-04 2004-05
9 months
Thruput MMTP 5.32 7.25 10.05 8.71
Rs. Crs Rs. Crs Rs. Crs Rs. Crs
PBDIT 288 319 1357 1408
Interest &
Finance Charges 672 567* 373 181
PBDT -384 -248 984 1227
Depreciation &
Amortization 394 405 409 308
PBT -779 -653 575 919
Provision for
Tax / Deferred
Tax -286 -241 115 350
PAT -492 -412 459 569
GRM (US$/BBL) 1.74 2.04 3.90 5.62
* DRP was effective from 1st July 2002.
Special emphasis has been given on safety and
environment protection. MRPL has been awarded 5 Star
rating by British Safety Council. As on 1st February 2005,
accident free days are 419.
Various initiatives have been taken to further reduce the
interest on working capital borrowing and also term loans
as under: -
a) Working Capital Borrowing has been shifted from PLR
(presently 10.25% p.a.) linked to Libor (around 2.5-
3% p.a.) linked. Saving of around 6.5% p.a.
b) ONGC's Working Capital Loan of Rs.450 Crores was
refinanced by MRPL by availing Buyers credit facility
with ONGC's guarantee carrying interest at around
1.5% p.a.
c) MRPL persuaded Saudi Aramco (Crude Supplier) to
supply crude without insisting for any LC with the
backing of ONGC's parental guarantee.
d) Once the IOC-NIOC contract was assigned by IOC in
February 2004, MRPL took up with NIOC for waiver
of confirmation / handling charges pertaining to LC
levied by Bank Markazi, Iran (0.10% flat for
confirmation & 0.10% flat for handling). After lot of
persuasion NIOC & Bank Markazi agreed to waive the
confirmation charges of LCs with support of RBI.
e) Long Term Loan of Rs. 2400 Crores availed from
ONGC in January 2004 to refinance Facilities `A', `B'
and the outstanding under facility `C', carrying interest
linked to Bank Rate (Presently 6% p.a.) have been
prepaid to the extent of 600 Crores.
The Annual Accounts of MRPL for the year 2002-03,
2003-04 were subjected to C&AG supplementing Audit
U/s 619(4). C&AG have given nil report on the same.
Other positive features after ONGC's entry in MRPL
The short term borrowing programme of MRPL is rated at
A1+rating (indicating highest safety) by ICRA on standalone
basis without the benefit of comfort from ONGC.
The share price of MRPL
share to almost Rs.53 per
share (increase of about
550%) indicating the
substantial improvement in
Investors confidence in
MRPL.
Market capitalization of MRPL's equity has increased
from Rs.638 Crores to approximately Rs.9000 Crores
increase of 1310%.
MRPL, which was virtually a sick unit at the time of
acquisition of A.V. Birla's stake by ONGC, entered BSE
top 30 portals on 7th January 2004.
MRPL has started getting Mumbai High crude. MRPL has
also started processing Nile crude. ESC for MRPL has been
constituted by MOP&NG. MRPL has for the first time
signed a Term Contract with Saudi Aramco (National Oil
Company of the Kingdom of Saudi Arabia). MOP&NG has
also approved assignment of NIOC-IOC contract of 5
MMTPA for import of Iran Mix crude in favour of MRPL.
The crude procurement is now directly done by MRPL
saving the canalizing charges / commission to the buying
agent of about 3 cents per barrel.
MRPL has finalized Contract of Affreightment with the
help of Transchart (Ministry of Shipping) for transporting its
Arab Mix / Iran Mix crude for the year 2003-04 & 2004-05
at very competitive rates.
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