The net profit of Chennai Petroleum Corporation Limited (CPCL) dropped by nearly 66 per cent during the quarter ended March 31, 2012, as compared to the corresponding period in 2011. The total income, however, remained flat.

While the net profit was Rs.107.19 crore and total income Rs.10,331.54 crore in the quarter under review, the figures in the corresponding period in previous fiscal were Rs.314.11 crore and Rs.10,322.93 crore, respectively.

In 2011-12, CPCL reported a sharp dip in the net profit to Rs.61.83 crore as against Rs.511.52 crore in 2010-11. But for a refund of Rs.276 crore received from Income Tax Department on account of exemption of profit under Section 80 IB of Income Tax Act for new undertaking for previous years, even this would have been wiped out.

Total income for the full fiscal went up to Rs.40,807.86 crore as against Rs.33,141.32 crore.

Dividend

The company will pay a dividend of Rs.2 per share.

Constraints at port

The profit before tax was negative at Rs.158 crore on account of various factors. One of the main factors, the release said, was the higher freight expenditure of around Rs.192 crore due to transportation of crude oil in smaller Afra Max vessels instead of regular Suez Max vessels as Chennai Port Trust discontinued berthing of bigger vessels citing infrastructure constraints at the port.

CPCL achieved a gross refining margin (GRM) of $4.16 per barrel for 2011-12, as against $ 5.38 per barrel for 2010-11. For the quarter ended March 31, 2012, the GRM was $ 4.46. Apart from the crude oil prices, which remained well above $ 100 per barrel, unplanned shutdown of process units during power disturbances, low throughput operation during cyclone Thane also contributed to lower margins.

The crude throughput in 2011-12 was 10.56 million tonnes as against 10.75 million tonnes in the previous fiscal. As a step towards widening the crude oil basket, CPCL processed three new imported crude — Espoir from Ivory Coast, Essider from Libya and Palanca blend from Angola.

Keywords: CPCL profit