Chennai Petroleum Corporation Limited

Chennai Petroleum Corporation Limited (CPCL) is an Indian state-
owned oil and gas corporation headquartered in Chennai, India. It was formed as a joint
venture in 1965 between the Government of India (GOI), AMOCO and National Iranian
Oil Company (NIOC) having a share holding in the ratio 74%: 13%: 13% respectively.
From the grassroots stage CPCL Refinery was set up with an installed capacity of 2.5
Million Tonnes Per Annum (MMTPA) in a record time of 27 months at a cost of Rs.
430 million without any time or cost overrun.

In 1985, AMOCO disinvested in favour of GOI and the shareholding percentage of GOI
and NIOC stood revised at 84.62% and 15.38% respectively. Later GOI disinvested
16.92% of the paid up capital in favor of Unit Trust of India, mutual funds, insurance
companies and Banks on 19 May 1992, thereby reducing its holding to 67.7%. The
public issue of CPCL shares at a premium of Rs. 70 (Rs. 90 to FIIs) in 1994 was over
subscribed to an extent of 27 times and added a large shareholder base of over
90000.As a part of the restructuring steps taken up by the Government of India, Indian
Oil Corporation Limited ( IOCL) acquired equity from GOI in 2000-01 Currently IOC
holds 51.88% while NIOC continued its holding at Wax and Petrochemical feedstocks
production facilities
CPCL has two refineries with a combined refining capacity of 11.5 Million Tonnes Per
Annum (MMTPA). The Manali Refinery has a capacity of 10.5 MMTPA and is one of the
most complex refineries in India with Fuel, Lube, Wax and Petrochemical feedstocks
production facilities. CPCL's second refinery is Nagapattinam Refinery located
at Cauvery basin at Nagapattinam in panangudi. This unit was set up in Nagapattinam
with a capacity of 0.5 MMTPA in 1993 and later enhanced to 1.0 MMTPA.

The main products of the company are LPG, Motor Spirit, Superior Kerosene, Aviation
Turbine Fuel, High Speed Diesel, Naphtha, Bitumen, Lube Base Stocks, Paraffin Wax,
Fuel Oil, Hexane and Petrochemical feed stocks. The Wax Plant at CPCL has an
installed capacity of 30,000 tonnes per annum, which is designed to produce paraffin
wax for manufacture of candle wax, waterproof formulations and match wax. A
Propylene Plant with a capacity of 17,000 tonnes per annum was commissioned in 1988
to supply petrochemical feedstock to neighbouring downstream industries. The unit was
revamped to enhance the propylene production capacity to 30,000 tonnes per annum in
2004. CPCL also supplies LABFS to a downstream unit for manufacture of Liner Alkyl
Benzene.
CPCL plays the role of a Mother Industry supplying feed stocks to the neighbouring
industries in Manali. CPCLs products are marketed through IOCL. CPCLs products are
mostly consumed domestically except Naphtha, Fuel Oil and Lubes which are partly
exported.
CPCL has also made pioneering efforts in the field of Energy and Water Conservation
by setting up a Wind Farm and Sewage Reclamation and Sea Water Desalination
Plants
The crude throughput for the year 2011-12 was 10.557 million metric tonnes (MMT).
The companys turnover for the year 2011-12 was Rs.45385 crores and the Profit after
Tax was Rs.61.83 crores.
The Company has declared a dividend of 20% on the paid-up equity share capital of the
Company for the year 2011-12.

Related News

08-
Nov-
13
Chennai Petroleum Corporation net profit rises 103.59%
in the September 2013 quarter
03-
Sep-13
Chennai Petroleum Corporation designates company
secretary
15-
Aug-
13
Chennai Petroleum Corporation reports net loss of Rs
377.19 crore in the June 2013 quarter
02-
Aug-
13
Chennai Petro Corporation to convene AGM
04-
Jun-13
Chennai Petroleum Corporation Appoints Director
28-
May-
13
Chennai Petroleum Corporation reports net loss of Rs
392.23 crore in the March 2013 quarter

Peer Comparison
Company
Market Cap
(Rs. in Cr.)
P/E
(TTM)
(x)
P/BV
(TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Reliance Inds. 268,503.30 12.24 1.50 7.03 12.3 12.2 0.41
I O C L 59,557.61 3.81 0.97 8.59 8.4 8.2 1.31
B P C L 26,291.19 3.49 1.58 6.27 16.8 14.8 1.48
H P C L 8,277.81 1.24 0.60 7.90 6.7 6.8 2.37
M R P L 7,509.89 0.00 1.16 32.11 -11.1 -1.1 1.00
Essar Oil 6,801.48 0.00 2.86 9.43 0.0 0.0 12.92
C P C L 964.78 0.00 0.48 0.00 0.0 0.0 1.65
Nagar.Oil Refin. 158.43 0.00 0.20 0.00 0.0 0.0 0.00
Omnitech Pet. 24.19 0.00
-
100.79
0.00 0.0 0.0 0.00

Objectives
At CPCL, surpassing our own standards o f excellence has been a consistently
occurring phenomenon. A humble journey started with a refining capacity of 2.5 MMTPA
has now grown to be the largest refining company of South India.
A steely resolve to stick to quality, an unrelenting passion to tread on a consistent
growth path, the finest of technology, care for environment, all put together, make CPCL
a resounding success story, year after year.
As part of the MoU signed with Indian Oil Corporation for the year 2008-09, CPCL
would strive:
To maximise the profit and return on capital employed of the company
To optimise utilisation of the Refining capacity at Manali and at Cauvery Basin,
including selection of appropriate Crude mix and production of Value Added
products.
To maximise the yield of distillates in order to improve the Gross Margin.
To develop energy improvements schemes and reduce energy consumption
and losses in the refinery.
To synergise marketing infrastructure, capabilities and strategies with that of
IOC in order to maximize profits.
To move towards international standards of excellence in Refinery operations
To strengthen information systems and information technology.
To continue efforts towards safety achievement and environmental protection.
To ensure execution of projects without time or cost overrun.
To focus training efforts on team building, creation of competitive mind-set and
refinery economics.
To maintain reliability of operations at high level.

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Chennai Petroleum Corporation Limited (CPCL) is an Indian state-

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