Chennai Petroleum Corporation Limited (CPCL) has posted a profit after tax (PAT) of Rs.510 crore for the first quarter of the current year. It resulted in enhancing the company’s net worth, said its Chairman B. Ashok.
During 2012-13 CPCL posted net loss of Rs.1,766.84 crore and Rs.303.85 crore for 2013-14. These had resulted in eroding more than 50 per cent of its peak net worth from Rs.3,793 crore in 2011-12 to Rs.1,722 crore in 2013-14. This called for ‘reporting’ the matter to the BIFR. The company skipped payment of dividend for the second consecutive year.
‘Not a sick company’Addressing the 48 annual general meeting, Mr. Ashok said: “CPCL is not a sick company. We will be reporting the matter to BIFR. We have posted PAT of Rs.510.11 crore in the first quarter. The company’s net worth has increased to Rs.2,322 crore from Rs.1,722 crore, and the book value per share from Rs.116 to Rs.149.”
Explaining further about the improved PAT for the first quarter, he said it was on account of recognition of deferred tax asset on the carry forward business losses and unabsorbed depreciation to the extent of deferred tax liability.
He said CPCL’s gross refining margin would improve with the implementation of Rs.3,110-crore resid upgradation project.
“The laying of new 42 inch crude pipeline from Chennai Port to Manali Refinery at a cost of Rs.257 crore will reduce pumping time and port demurrage charges. It will be completed in 18 months. The Rs.279-crore mounded bullet storage facility for LPG and petrochemical facility, as part of risk mitigation measures, will be mechanically completed by end-2014,” he said.
