CPCL net at Rs 189 crore

CORPORATE SCORECARD

Chennai Petroleum Corporation Ltd, a subsidiary of Indian Oil Corporation (IOC), has posted a net profit of Rs 189.09 crore for the quarter ended March 31, 2007 compared with Rs 29.26 crore in the corresponding quarter of the previous fiscal.

Net sales of the company stood at Rs 5,725.24 crore, up four per cent over Rs 5,508.16 crore in the same period previous year.

For the year ended March 31, 2007, net profit of the company grew 17.5 per cent to Rs 565.27 crore as compared with Rs 480.96 crore in the previous year. Profit before tax was Rs 880.88 crore as against Rs 723.37 crore in the previous year. Net sales for the year 2006-07 stood at Rs 24,694.82 crore, higher by 17 per cent over Rs 21,127.43 crore posted in the previous year.

The board has recommended a dividend of 120 per cent for 2006-07.

On physical performance, CPCL has achieved a crude thruput of 10.40 million metric tonnes (MMT) in 2006-07 against 10.36 MMT in 2005-06. The company's Manali refinery operated at 103 per cent of design and processed highest ever 9.78 MMT of crude oil. It achieved gross refinery margin (GRM) of $5 per barrel for 2006-07 net of under recoveries plans Rs 35,000 crore refinery-cum-petrochemical complex at Chennai.

A new 15 MMTPA (million metric tonnes per annum) grass-root refinery-cum-petrochemical complex at Manali is being proposed by the company involving an investment of Rs 30,000 crore to Rs 35,000 crore.

Addressing a press conference, K K Acharya, managing director, CPCL, said process configuration and prefeasibility studies were being undertaken through Engineers India Ltd for this project. The reports are expected to be submitted by June end. About 3,000 acres of land at Ennore being sought from the Tamil Nadu government.

He said that it would be better to add petrochemical complex along with refinery considering the economic viability and huge demand for petrochemicals in the country. It will take about 5-6 years to complete this project.

N C Sridharan, director - finance, CPCL, said the refinery-cum-petrochemical complex at Manlai could be undertaken jointly by IOC and CPCL. In this project, the company is also expected to bring in a strategic partner, which could be a multinational oil firm.

About one third of the project cost could be pumped in by IOC and CPCL and the balance could be raised by bringing in a strategic investor and through debt. Depending on the needs, a separate special purpose vehicle or a new company may also be formed. Less than 26 per cent stake may be offered to the strategic investor while the rest will be held by CPCL and IOC in the initial stage. As the project progresses, the company may explore public issue option.

CPCL has already chalked out an expansion plan involving an investment of Rs 6,00 crore in various projects over the next five year period. Funds will not be a constraint and the company can tie-up for funds as and when it requires, added Sridharan.