Chennai Petroleum Corporation, as expected, has posted very good results for year ended 31-03-08. Though the topline growth was marginal, profit growth was spectacular.
Its net sales rose 13% at Rs.28,018.60 crore. It managed to keep its operating expenses at consistent levels, it rose 11%. EBIDTA showed a 65% jump at Rs.2,618.10 crore. Interest outgo rose just 3% and depreciation by just 4%. Its PBT consequently shot up 95% at Rs.1,721.60 crore. Tax outgo was up 90%, yet it managed to show a spectacular 98% jump in PAT at Rs.1,122.90 crore.
The company, a subsidiary of Indian Oil Corporation (IOC), supplies its entire production to IOC at prices which it would pay to an international supplier. Hence, the biggest advantage which the company has is that its entire production is already booked but at existing international oil prices. It is not shackled under the Govt’s pricing. So it enjoys international rates, keeps its costs same and thus manages to reap a bounty.
The company is putting up another hydro diesel desulphurization unit at its Cauvery basin refinery. This would help the company overcome the problem of feedstock availability and expand its crude product line.
Chennai Petro is sure to have a fantastic year ahead, what with crude now scaling $ 135 per barrel and with predictions coming in of there being no let up in the prices.
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