CPCL's higher turnover

By Our Special Correspondent

CHENNAI, MAY 30. Chennai Petroleum Corporation (CPCL) has reported a lower profit after tax (PAT) of Rs. 122.43 crores (Rs. 143.14 crores) for 2000-01 on an increased turnover of Rs. 7,133 crores (Rs. 5,514 crores).

Consequently, it has announced a lower dividend of 25 per cent, down from 30 per cent last year. The lower PAT is attributed to an assortment of factors ranging from fluctuations in crude and product prices to interest and depreciation charges on account of DHDS (hydro de-sulphurisation) project. The profit before interest, depreciation and tax (PBIDT) is placed at Rs. 380.92 crores (Rs. 358.63 crores).

The crude throughput for the year was 6.625 million tonnes. The Cauvery Basin Refinery processed 57.9 lakh tonnes, recording a capacity use of 115.8 per cent. The Manali Refinery processed 6.046 million tonnes.

CPCL has now become the subsidiary of Indian Oil Corporation (IOC) following the completion of share transfer formalities on March 29. It may be recalled that the Central Government had sold its holding of 77 million shares in the company to IOC at a price of Rs. 65.92 a piece, realising Rs. 509.33 crores. In the new arrangement, IOC will hold 51.81 per cent stake in CPCL, National Iranian Oil Company 15.38 per cent, FII 1.16 per cent, mutual funds and UTI 4.66 per cent, banks and the like 13.5 per cent, NRIs 1.44 per cent and corporate bodies 2.24 per cent. The balance is held by the general public.

Addressing a press conference here today, Mr. S. Rammohan, Chairman and Managing Director of the company, said the strength of CPCL board had gone up from 10 to 13 following the induction of three IOC nominees into it.

Fielding an array of questions, Mr. Rammohan had indicated that CPCL's courtship with PSEG, the U.S. power major, for the proposed 500 MW power project had more or less ended. For one, PSEG appeared to have gone `dormant' on the issue. For another, the Tamil Nadu Electricity Board (TNEB) had not shown any major inclination to sign a power purchase agreement. All these apparently has forced CPCL to look for alliances with public sector power enterprises like National Thermal Power Corporation (NTPC) and Neyveli Lignite Corporation (NLC). Expected to involve an investment of over Rs. 2,830 crores, the power project will have a debt-equity ratio of 70:30. It will use refinery residue as fuel. If CPCL would not be averse to have more than one equity partner for the project, according to the CMD.

He scotched reports that the proposal for a permanent jetty facility at Nagapattinam for receiving crude oil for its Cauvery Basin Refinery had been shelved. He asserted that the work on the project had already commenced and hoped it would go on stream by January next.

To a query, he said the company had transferred all marketing rights hitherto enjoyed by BPCL had been transferred to IOC. Yet, it still continued to market on its own certain specialised products.

On the memorandum of settlement with the SPIC group over the jinxed Arochem project, he merely said the ``ball is now in SPIC's court'. CPCL would get from SPIC its entire equity invested in Arochem, interest thereon and legal fees incurred thus far.

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