Comments
Chennai Petroleum Corporation Ltd (CPCL), a subsidiary of Indian Oil Corporation (IOC), has posted a 38 per cent increase in net profit to ₹1,024 crore for the year ending March 31, 2017, against ₹740 crore in the previous year.
This was the second highest net profit reported by the company in a fiscal with the previous best being in 2007-08.
Revenue was up by 16 per cent to ₹40,586 crore (₹34,953 crore).
The company’s board recommended a dividend of 210 per cent, representing ₹21 per equity share. The dividend was the highest ever announced by the company with the earlier best being 170 per cent in 2007-08, according to B Ashok, Chairman, IOC.
In October 2014, CPCLwas reporting to the Board for Industrial & Financial Reconstruction. Since then, its performance has improved, he said.
The improved financial performance was due to increase in quantity of products sold, physical performance, and favourable international prices of crude and products. This resulted in higher gross refining margin of $6.05 a barrel in 2016-17 against $5.27 a barrel in the previous year, he told newspersons.
CPCL achieved a throughput of 10.25 million tonnes during 2016-17, exceeding the MoU target of 10.25 million tonnes - after a gap of seven years. This was despite the impact of cyclone Vardah, said Gautam Roy, Managing Director, CPCL.
Roy said around ₹5,200 crore will be spent on various projects, including Resid Upgradation Project and a new crude oil pipeline from Chennai port to the refinery.
CPCL-IOC merger
On the merger of CPCL with IOC, Ashok said due to high volatility, a standalone refinery is not viable when compared to an integrated and diverse project like IOC. “We believe that a merger of a subsidiary with parent organisation is helpful,” he said.
The company told the foreign investor — Naftiran Intertrade Company Sàrl, a Swiss-based subsidiary of National Iranian Oil Company — in CPCL to infuse money or other options will be evaluated.
As of March quarter end, IOC holds 51.89 per cent in CPCL, the Iranian company 15.40 per cent and rest by domestic financial institutions and public.
Funds are required to expand the company’s Narimanam refinery to nearly 9 mt from 1 mt at an estimated cost of ₹27,000 crore.
On the BSE, CPCL’s scrip closed at ₹417.15, up by 2.67 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.