Chennai Petroleum Corporation Ltd (CPCL), a subsidiary of Indian Oil Corporation (IOC), said it could achieve improved margins in FY24 due to the opportunity to process more cost-effective crude oil.

Processing of less costly crude reached its highest level at 31.3 per cent (3.6 million tonne) enhancing the refinery margins during FY24. The key energy performance indicators, including fuel and loss of 8.81 per cent, MBN (Million British thermal units per barrel) of 72.2, and Energy Intensity Index (EII) of 87.5, facilitated cost savings and improved efficiency, SM Vaidya, Chairman, IOC, said while addressing CPCL’s 58th annual general meeting over video conference mode.

CPCL also achieved its highest-ever crude throughput since its commissioning, processing 11.642 million tonnes, resulting in 111 per cent capacity utilisation. This led to increased production volumes, better energy performance, and enhanced profitability, he added.

Vaidya also mentioned that the debt of the company reduced to ₹2,762 crore compared to ₹4,235 crore in FY23. CPCL recorded its second-highest turnover of ₹79,207 crore a Profit After Tax of ₹2,711 crore. He also highlighted that CPCL successfully met the mandated MSME procurement target of 25 per cent over the past five years.

CPCL is actively exploring and investing in various other verticals, including renewable energy, petrochemicals, and advanced technologies. CPCL is leveraging these technologies to diversify into sustainability initiatives, such as setting up compressed bio-gas plants, green hydrogen plants, and producing biofuels.

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