Chennai Petroleum Corporation Limited (CPCL), an Indianoil Subsidery  company, has declared a dividend of 120% for the year 2010-11. This was announced by Mr. R.S. Butola, Chairman, IndianOil Group Companies, at the 45th Annual General Meeting (AGM) in Chennai .



The turnover for the year 2010-11 was Rs. 38,124 crore as against Rs. 29,184 crore in 2009-10. The Profit After Tax (PAT) for 2010-11 was Rs. 511.52 crore as against Rs. 603.22 crore, the previous year.

The Utilities and Offsite facilities of the Rs. 2,616 crore Auto Fuel Quality Upgradation Project of CPCL are in various stages of completion. A new 42-inch crude oil pipeline from Chennai Port to Manali Refinery at a cost of Rs. 126 crore is awaiting environmental clearance and Indian Oil Corporation Limited is the Engineering Procurement, Construction Management (EPCM) Contractor.



CPCL’s new project initiatives include the Rs. 3,111 crore Resid Upgradation Project and a brownfield refinery expansion project at Manali with matching secondary processing facilities. CPCL is equipping itself to receive Natural Gas for use at its Manali Refinery and Heads of Agreement for supply of LNG have already been signed with Indian Oil Corporation Limited, from its proposed LNG Terminal at Ennore near Manali.

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CPCL pays 120% dividend for 2009-10



Chennai Petroleum Corporation Limited (CPCL) has declared a dividend of 120% for the year 2009-10. This was announced by Mr.B.M.Bansal, Chairman, IndianOil Group Companies, at the Company’s 44th Annual General Meeting (AGM) held in Chennai on September 06, 2010.



The turnover for the year 2009-10 was Rs.29,184 Crore while the Profit After Tax (PAT) was Rs.603.22 Crore. CPCL’s on-going projects include Rs.2,616 crore Auto Fuel Quality Upgradation Project which is in an advanced stage of completion and a new 42-inch crude oil pipeline as a replacement for the existing 30” pipeline from Chennai Port to Manali Refinery at a cost of Rs.65 crore.





CPCL’s new project initiatives include Resid Upgradation Project, Single Point Mooring (SPM) and Crude Oil Terminal (COT). In order to increase the distillate yield of the Refinery and reduce fuel oil production, CPCL also proposes to install a high conversion Resid Upgradation Unit at an estimated cost of Rs. 3,350 Crore which is expected to be completed by the end of 2013. A 9.0 MMTPA brown-field refinery project is also in the pipelines at Manali to replace the aging original 2.8 MMTPA refinery at a cost of Rs.10,000 crore and achieve better energy/utilities management and optimal product pattern. The project is expected to be commissioned by the end of 2015.

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Chennai Petro plans brownfield refinery

















Chennai Petroleum Corporation Ltd (CPCL) plans to set up a 9 million tonnes per annum (mtpa) brownfield refinery in Manali, north of Chennai, at a cost Rs 10,000 crore. This will replace the aging 2.8 mtpa refinery and help achieve better energy/utilities management and optimal product pattern, according to Mr B.M. Bansal, Chairman, CPCL.



The project is expected to be commissioned by the end of 2015, he told newspersons on the sidelines of the company's 44 {+t} {+h} annual general meeting.



To increase the ‘distillate' yield of the company's refinery and reduce fuel oil production, the company plans to install a high ‘conversion resid upgradation unit' at a cost of Rs 3,350 crore. This project is expected to be completed by 2013 end, he said.



Mr Bansal said projects worth Rs 2,600 crore were under implementation. These include the auto fuel quality upgradation project, which is in an advanced stage of completion, and a new 42-inch crude oil pipeline as a replacement for the existing 30” pipeline from Chennai port to Manali refinery, at a cost of Rs 65 crore. The project will be completed within 12 months after the right of way is made available.


http://www.thehindubusinessline.com/2010/09/07/stories/2010090752870200.htm

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Chennai Petro sees 55-cr loss



Chennai Petroleum Corp on Wednesday reported a net loss of Rs. 55.31 crore in the quarter ended June 30 on lower refining margins. The Chennai-based firm had, in the April-June quarter of the previous fiscal, reported a net profit of 304.72 crore, according to the company's filing to the stock exchanges. The company earned $1.79 on turning every barrel of crude oil into fuel in the quarter against $6.88 per barrel gross refining margin in Q1 of 2009-10 fiscal. Net sales rose to 6,327.65 crore in Q1 this fiscal from 5,660.39 crore a year ago. CPCL, a unit of state-owned IndianOil, turned 2.326 million tonnes of crude oil into product in April-June this year against 2.685 million tonnes throughout a year ago.

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Chennai Petro looks to hedge on MCX
Chennai Petroleum Corporation (CPCL), an IOC group company, will shortly begin hedging on MCX joining companies such as IOC, Tata Petrodyne and SpiceJet which hedge themselves partly against crude oil price risk and volatility by taking exposure to crude oil futures traded on the commodity bourse.

MCX is understood to be in talks with BPCL and HPCL, the other two state-owned refiners, and Air India to use its trading platform for hedging and thus adding to the liquidity of the crude contracts. "We are in the process of getting into the over-the-counter (OTC) market for hedging ourselves against volatility by buying crude oil and selling petroleum products forward," said NC Sridharan, director, finance, CPCL. "We have decided to test the market by enrolling with MCX. By June-end, we would have done half a dozen transactions on the bourse. We propose to enter the offshore OTC market by July with IOC having vetted the agreements being signed between us and the counterparties, which are the ones that IOC does forward transactions with. We will use MCX to hedge our African and Gulf crude oil exposure and the OTC market to sell petroleum products forward." State-owned firms as well as private refiners such as Essar use the more liquid over-the-counter (OTC) market to sell forward the spread or difference between products such as a barrel of diesel and a barrel of crude to banks and trading outfits of major oil companies operating out of Singapore, Hong Kong, Dubai, Tokyo and Sydney.

Metals and energy exchange MCX has been offering futures trading since late 2003 and its average daily volume of crude oil traded in the calendar year through April has been 13 million barrels. However, Indian commodity futures markets are yet to achieve the scale that will enable genuine users to increase their presence in the market. This is because an important legislation (FCRA Act, 1952 Amendment) that will facilitate the entry of banks mutual funds into the market is pending passage by Parliament. "We have been hedging on MCX, albeit not in a big way, for the past two years. Our exposure has to be covered typically for nine months to a year so far. Month contracts must have liquidity, which we find on the OTC market where we do most of our hedging," said SV Narasimhan, director, finance, IOC.

Forward contract is customised

An exchange-traded futures contract facilitates the purchase or sale of an asset at a predetermined price for delivery at a future date, thereby allowing an entity to lock in the price of its raw material or end product A forward contract is similar to a futures contract except that, unlike a futures, which is a standardised contract traded on an exchange, it is a customised contract entered into between two counterparties on the over-the-counter market A benefit that a futures transaction affords over an OTC contract is the removal of counterparty default risk, which is borne by the exchange.


Economic Times, New Delhi, May 10, 2010

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