A host of adverse factors including high crude oil prices which eroded the gross refining margins, high freight costs, the global economic scene have hit the performance of Chennai Petroleum Corporation Ltd.

The oil refiner's net profit in the fourth quarter of 2011-12 is just about a third of its profit in the comparable quarter in the previous year.

It has reported a net profit of Rs 107.19 crore (Rs 314.11 crore) on an income of Rs 10,331.54 crore (Rs 10,322.93 crore) for the fourth quarter ended March 31, 2012.

The Gross Refining Margin for the quarter halved to $4.46 a barrel ($8.46).

Chennai Petroleum has announced a dividend of Rs 2 (20 per cent) a share of Rs 10 for 2011-12.

A Rs 276-crore income tax refund contributed to the company reporting a net profit for the financial year 2011-12.

It reported a net profit of Rs 61.83 crore (Rs 511.52 crore) on a total income of Rs 40,807.86 crore (Rs 33,141.32 crore) during 2011-12.

Capex

The company has announced a capital expenditure plan of Rs 1,092.21 crore, including a plan outlay of Rs 785.68 crore.

Two of its projects are awaiting environment clearance. These include: the resid upgradation project to improve refinery margins. The Rs 3,110.36-crore project can be completed in 33 months, if the Ministry of Environment and Forests lifts the ban on new expansion projects in Manali, North Chennai.

It will replace the 30-inch crude oil pipeline from the Chennai Port with a 42-inch pipeline at a cost of Rs 126 crore. The work has been awarded to IOCL, which will start once the Environment Ministry clears the project.

The Manali Refinery Expansion project that will increase its capacity to six million tonnes a year from the present 3.7 million tonnes is being finalised.

> rbalaji@thehindu.co.in

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