CHENNAI PETROLEUM CORPORATION LTD
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BSE Code:
500110
NSE Code:
CHENNPETRO
Business Profile
Business Profile
Chennai Petroleum Corporation (CHENNPETRO), incorporated in 1965, is engaged in the refining and marketing of fuel and other petroleum products. Earlier known as Madras Refineries, it got its present name with effect from Jun. 13, 2000. The company is part of the Indian Oil Corporation group of companies, which also include IndianOil Technologies, Bongaigaon Refinery & Petrochemicals, IndianOil (Mauritius), Lanka IOC PLC, and IndianOil Tenders.
Liquid petroleum gas (LPG), motor spirit, superior kerosene, aviation turbine fuel, high speed diesel, bitumen, naphtha, lube base stocks, paraffin wax, fuel oil, hexane and petrochemical feed stocks are the main products produced. The company has a refinery at Manali in Chennai with a capacity of 9.5 MMTPA producing fuel, lube, wax and petrochemical feedstocks. Its second refinery is located at the Cauvery Basin in Nagapattinam with a capacity of 1 MMTPA. A windmill project with an installed capacity of 17.6 MW was commissioned in September 2007.
Dun & Bradstreet (D&B) ranked the company 12th as per total income in its 2007 edition of India`s Top 500 companies. A state level safety award was bestowed for the longest accident free man hours for the year 2005 in March 2008. The aviation turbine fuel produced at the Manali refinery was accorded certification by Centre for Military Airworthiness and Certification (CEMILAC) for use by the Indian armed forces.
Indian Oil Corporation markets majority of the fuel products, but direct marketing by the company has recorded an all-time record sales of paraffin wax, sulphur, propylene and food grade hexane in FY08. Another significant marketing milestone achieved is the commencement of propane marketing from the Cauvery Basin refinery. The company has entered into a long term agreement with Tamil Nadu Petroproducts for supply of linear alkyl benzene feed stock and with TANFAC Industries, Cuddalore for supply of sulfur. Lube oil base stock has been exported for the first time to Sri Lanka for commissioning the lube blending plant of Lanka IOC.
The registered office is located at No 536, Anna Salai, Teynampet, Chennai-600018, Tamil Nadu.
Financials
The company swung to loss for the quarter ended December 2008. During the quarter, the company reported loss of Rs 12,698.90 million compared with a profit of Rs 2,256.20 million in the same quarter previous year. Net sales declined 20.44% to Rs 56,175 million, while total income for the quarter fell 20.60% to Rs 56,395.40 million, when compared with the prior year period. It posted loss of Rs 85.28 a share during the quarter compared with earnings of Rs 15.15 a share in prior year period.
Future Plans
The company proposes to invest towards expansion of existing refinery capacity, quality upgradation of auto fuels to Euro III / Euro IV Standard and for upgradation of refinery residues to distillates.
Auto fuel quality upgradation project has been undertaken at an estimated cost of Rs. 24,200 million at the Manali refinery to produce MS/HSD meeting Euro-IV specifications for Chennai and Bangalore and Euro-III equivalent specifications for the rest of the locations from April 2010 onwards, as per the Auto Fuel Policy of the Government of India.
In order to produce additional value added products like LPG, Naphtha, and high speed diesel, and meeting latest fuel norms, the existing Refinery-III capacity at Manali Refinery is being expanded from 3 MMTPA to 4 MMTPA. This project is expected to be completed by mid 2009.
A project for installation of a 5.8 MGD sea water desalination plant is in an advanced stage of implementation at an estimated cost of Rs.2313.4 million. The project is expected to be ready for precommissioning by mid 2008.
The Company is evaluating various options to meet Euro III specification of diesel from CBR with effect from April 2010.
A project for installing additional crude tanks is under implementation to augment crude storage capacity at the Manali refinery. This project is expected to be completed by the end of 2009.