Chennai Petroleum (500110) Q4 99/00 earnings summary

Executive summary

• Record turnover of Rs.5,521.41 crore in FY1999-2000; crude throughput reached 7.013 MMT, exceeding 100% capacity utilisation.

• Shareholders approved the change from Madras Refineries Limited to a new corporate name; the change took effect on April 6, 2000.

• Diesel Hydro Desulphurisation (DHDS) was commissioned, while Public Investment Board approval was secured for the 3 MMTPA Manali expansion.

Financial highlights

• Turnover Rs.5,521.41 crore, up 48% YoY from Rs.3,747.39 crore; profit before interest, depreciation and tax Rs.358.63 crore vs Rs.466.65 crore.

• PBT Rs.191.68 crore vs Rs.275.64 crore; PAT Rs.143.14 crore vs Rs.204.93 crore.

• Interest expense declined to Rs.85.98 crore from Rs.112.01 crore; depreciation was Rs.80.97 crore vs Rs.79.00 crore.

• Direct marketing turnover was Rs.684 crore; contribution to the exchequer rose to Rs.1,827.28 crore from Rs.1,348.03 crore.

• Recommended dividend of 30% on paid-up share capital; EPS Rs.9.72 vs Rs.13.92.

Outlook and guidance

• 3 MMTPA Manali expansion, estimated at Rs.2,360.38 crore, had PIB approval and awaited CCEA investment approval; environmental clearance and lender appraisal were complete.

• Cauvery Basin Refinery expansion from 0.5 to 1.0 MMTPA, estimated at Rs.30 crore, was underway and expected to finish by June/July 2001.

• Cauvery Basin oil jetty, estimated at Rs.96 crore, was expected to be commissioned in Q1 FY2001-02; the project is intended to secure crude supply and support future product exports.

• A 500 MW residue-based power project, estimated at Rs.2,650 crore, was in detailed-feasibility preparation; Petronet CTM pipeline investment was expected to be about Rs.35 crore.

• Additional DHDS reactor work for Rs.25 crore was scheduled for October 2001 completion; extra Cauvery Basin storage for Rs.10 crore was expected by December 2000.