Business

CPCL plans to raise ₹1,000 crore via bonds

Sees lower production, inventory loss

Chennai Petroleum Corp Ltd plans to raise up to ₹1,000 crore through issue of domestic bonds during the current fiscal to meet its financing needs.

The CPCL board has approved a resolution pertaining to the raising of funds through private placement, towards balancing the short term/long term (borrowing) mix, it said in a regulatory filing.

The proposed bond issue would be within the overall borrowing limit of ₹10,000 crore approved by shareholders on August 21, 2019.

As of March 2020, the company had a borrowing of ₹2,953 crore.

On Wednesday, CPCL had reported widening of net loss in the fourth quarter ended March 2020 to ₹1,638 crore, from ₹29 crore a year earlier, on lower crude production and inventory losses. In the period, revenue from operations dipped to ₹11,769 crore from ₹12,765 crore. Due to the losses, the board has not recommended any dividend.

Average gross refining margin for the April-March period is a negative $1.18 per barrel compared with $3.70 per barrel a year earlier.

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Printable version | Jun 3, 2020 11:43:22 AM | https://www.thehindu.com/business/cpcl-plans-to-raise-1000-crore-via-bonds/article31660288.ece

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