Chennai Petroleum Corporation Ltd (CPCL), part of Indian Oil, has achieved a record physical performance for the financial year 2022-23. CPCL’s manali refinery achieved the highest-ever throughput of 11.3 million metric tonnes per annum (MMTPA), which is over 107% of its capacity utilisation, as against 9.0 MMTPA last fiscal.

CPCL surpassed past records in the production of diesel (HSD), petrol (MS), aviation turbine fuel (ATF), naphtha and hexane by 26.8%, 14.3%, 47.4%, 23% and 6.3%, respectively as compared to last year, all of which are highest-ever in the history of CPCL.

Also read: Traders’ body CAIT calls for monitoring mechanism for social media, OTT platforms

Arvind Kumar, MD, CPCL, attributed the stupendous physical performance of the company to collective and committed team effort of its employees under challenging business environment prevailing in oil Industry.

During FY23, CPCL achieved 104% of capex target by spending Rs 609 crore on its projects including JVs as against the outlay of Rs 584 crore.

CPCL is setting up a new grassroot refinery of 9 MMTPA capacity at Nagapattinam in an area of about 1,300 acres. The new refinery will produce petrol and diesel of Bharat Stage-VI specifications and polypropylene as a value added product, at a project cost of Rs 31,580 crore. Further investment of about Rs 4,000 crore will flow into the project from other stakeholders on build own and operate (BOO) basis.

CPCL, Indian Oil and seed equity partners had signed a joint venture agreement for the project. Indian Oil and CPCL will together hold 50% of equity stake (25% each) in the JV company and the balance 50% stake would be held by financial/strategic investors. The seed equity investors incude Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance.

Also read: 63% consumers to cut back non-essential spendings as cost of living rises

The company had posted a lower standalone net profit of Rs 143 crore for the quarter ended December 31, 2022, as compared to Rs 229 crore in the year-ago quarter. Revenue from operations was higher at Rs 19,214 crore compared with Rs 13,592 crore in the year-ago quarter. CPCL had then said that the Centre, with effect from July 1, 2022, levied duties on the export of petroleum products at the rates notified on fortnightly basis, which have been reckoned in the refinery transfer pricing. This has resulted in lower revenue realisations with significant impact on the profitability for and up to the quarter.