Chennai Petroleum (500110) Q4 97/98 earnings summary

Executive summary

• FY1997-98 delivered record operating and financial performance: 107% capacity utilisation, crude throughput of 7.521 MMT, turnover of Rs.2,720.08 crore and profit after tax of Rs.129.28 crore.

• Refining operations entered a major transition as the Administered Pricing Mechanism began phased dismantling on April 1, 1998, creating growth opportunities alongside pricing and marketing challenges.

Financial highlights

• Turnover rose to Rs.2,720.08 crore from Rs.2,495.11 crore; profit before tax increased to Rs.144.47 crore from Rs.117.35 crore, and profit after tax to Rs.129.28 crore from Rs.102.18 crore.

• Profit before interest, depreciation and tax was Rs.367.18 crore versus Rs.327.55 crore; earnings per share increased to Rs.8.78 from Rs.7.11.

• Reported value added was Rs.413.90 crore versus Rs.428.61 crore; contribution to the exchequer was Rs.1,540.34 crore versus Rs.1,496.34 crore.

Outlook and guidance

• A 3 MMTPA Manali expansion, estimated at Rs.1,915 crore, had first-stage government clearance; the detailed feasibility report was submitted for investment approval.

• A proposed 350 MW Manali power project, estimated at Rs.1,600 crore, was being developed as a joint venture; a pre-feasibility report was submitted for first-stage clearance.

• A permanent crude-import jetty at Nagapattinam was planned at an estimated Rs.55 crore; oceanographic studies had begun.

• Priorities under MDPM included cost and energy reduction, operational efficiency, quality, and building marketing infrastructure and strategies for a more competitive market.