Chennai Petroleum (500110) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 delivered record PAT of Rs.302.89 crore, with turnover up 38% YoY to Rs.8,636.52 crore, supported by improved refining margins and inventory holding gains.

• Crude throughput reached 6.819 MMT and capacity utilization 97.4%; the Nagapattinam oil jetty was commissioned and export activity expanded.

Financial highlights

• Turnover Rs.8,636.52 crore vs Rs.6,174.82 crore; PBT Rs.487.96 crore vs Rs.88.89 crore; PAT Rs.302.89 crore vs Rs.63.71 crore.

• Profit before interest, depreciation and tax rose to Rs.696.63 crore from Rs.296.00 crore; value added increased to Rs.925.75 crore from Rs.436.57 crore.

• Internal resources generated were Rs.389.29 crore vs Rs.136.64 crore; reserves rose to Rs.1,146.28 crore from Rs.902.22 crore.

• Recommended dividend of 35% on paid-up share capital, absorbing Rs.58.83 crore including dividend distribution tax; 32nd consecutive annual dividend.

Outlook and guidance

• 3 MMTPA Manali expansion, estimated at Rs.2,360.38 crore, was expected to be fully operational by December 2003; it targets improved distillate yield, product quality and emissions.

• FCCU revamp at Rs.91.45 crore was scheduled for completion by April 2004; new Chennai Port crude pipeline was expected to be completed by end-2005.

• A 492 MW residue-based power project with Neyveli Lignite Corporation and a Manali desalination project were under development or evaluation.

• Refinery expansion was intended to meet Bharat Stage II and Euro III-equivalent fuel specifications required from 1 April 2005.