May 19, 2010
CPCL PROFITABLE PERFORMANCE DURING 2009-10
Chennai Petroleum Corporation Limited (CPCL) has rallied back to profitability by coming up with an impressive physical and financial performance during the financial year 2009-10.
Financial Performance
The Gross Sales for the year 2009-10 was Rs.29,183.84 Crore as against Rs.36,489.67 Crore in the previous year.
The Profit After Tax (PAT) for the current year is Rs.603.22 Crore as against a loss of Rs.397.28 Crore for the previous year. As you are aware, it was mainly due to the unprecedented, volatile market conditions that led to CPCL suffering an adventitious loss for inventory as also processing of high-cost crude in a falling market that contributed to CPCL’s one-off negative performance in 2008-09.
CPCL achieved GRM of US$ 4.75 per barrel for the year 2009-10, net of under recoveries, as against US$ 1.22 per barrel for 2008-09.
The Board of Directors of CPCL has recommended a dividend of % for 2009-10.
Physical Performance
During 2009-10, CPCL achieved a Crude thruput of 10.06 Million Metric Tonnes (MMT) and also achieved the h ighest ever production of HSD - 3580 Thousand Metric Tonnes (TMT) (previous best 3525 TMT in 2008-09), Propylene - 33.90 TMT (previous best 30.50 TMT in 2008-09) and Paraffin Wax - 28.6 TMT (previous best – 28.02 in 2007-08).
In Cauvery Basin Refinery (CBR), the highest ever gas intake of 26.4 TMT was achieved and resulted in highest ever Propane production of 1763 MT (previous best 660 MT in 2008-09).
As a step towards widening the crude oil basket, CPCL processed 3 new crudes during 2009-10 i.e. CPC blend from Kazhakastan, Zarzartitine from Algeria and Brega from Libya.
Manali Refinery achieved the highest ever distillate yield of 69.2% (previous best 68.3% in 2006-07).
Commercialization of catalyst developed by IOC R&D was established by producing Ultra Low Sulfur Diesel (< 50 PPM) meeting Euro-IV Spec in Diesel Hydro treating unit of 0.25 MMTPA capacity.
At Manali Refinery, Sulfur Recovery Unit capacity was enhanced by 22% through Oxygen Enrichment Technology, developed jointly with Engineers India Limited (EIL) (for the first time in Indian Refineries).
CPCL has started supplying Bunker FO RMG 380 meeting ISO 8217 specification.
CPCL generated generated 35.56 million units in 2009-10 as against 29.63 million units in 2008-09 at its windmill farm near Coimbatore.
Reliability test of Sea Water Desalination plant was carried-out during Nov & Dec 09.
Energy Index:
Energy Index for Manali for 2009-10 is 71 MBTU/Barrel/NRG factor (MBN) which is the lowest ever achieved.
Product Pipelines:
Chennai-Tiruchi-Madurai pipeline (CTMPL) has crossed its design capacity of 1.8 MMTPA on 18 th Mar’10 for the first time since commissioning.
Commissioning of Chennai-Bangalore Pipeline (CBPL) has commenced.
CAPEX Plans:
During the next 5 years, the following major projects are pursued at a total investment outlay of about Rs.10,000 crore.
Projects under implementation:
Capacity Augmentation of Refinery III Crude Unit at Manali:
Capacity of Crude and Vacuum Distillation Unit of Refinery-III is enhanced from 3.0 MMTPA to 4.0 MMTPA at a cost of about Rs. 200 crore.
Revamp projects to upgrade Auto Fuel Quality to Euro-IV specifications
For meeting Auto Fuel Quality Specification of Euro III / Euro IV norms, CPCL is currently implementing Euro IV Projects at a total investment of Rs. 2615 crore.
CPCL is in the process of converting the existing Semi-Regenerative Catalytic Reformer (SCR) to a Continuous Catalytic Reformer (CCR) to increase the octane number for meeting Euro-IV specification, besides maximizing its capacity. The unit along with Isomerization unit of Euro IV project will enable CPCL in meeting the increased MS demand. Estimated Project cost is Rs. 270 crore.
The Euro IV project includes units like Diesel Hydrotreating Unit (DHDT) and Isomerization Unit along with associated facilities like HGU unit, Utilities and Offsites. A new Gas Turbine with HRSG is also being implemented. The Construction of the above Process units is in the advanced stage of completion. DHDT unit will be mechanically completed by July 2010.
New Project Initiatives:
Resid Upgradation Project:
CPCL proposes to implement the Resid Upgradation Project with a view to increase the distillate yield of the refinery and increase the percentage of high sulphur crude processing. The anticipated cost of the project is Rs. 3350 crore. The proposed project involves installation of a Delayed Coker Unit and revamping of existing Hydrocracker Unit along with other associated facilities. Process Packages for all the process units have been completed. Project Management Consultant has been selected for preparing the DFR of the project. The Resid Upgradation project is expected to be completed by end 2012.
New Projects/Initiatives CBR
An interconnecting crude pipeline between Karaikkal Port and CPCL Jetty is being implemented to enable high parcel size crude shipments. INDMAX for Resid cracking and INDADEPT- G for gasoline treating of IOC (R&D) are being considered for implementation.
Crude Oil Pipeline from Chennai Port
CPCL is also vigorously pursuing the proposal for laying a new 42” crude oil pipeline from Chennai Port to Manali Refinery. The new route would be by the side of the shore along the Chennai-Ennore Express corridor. The 11.5 km long pipeline proposal is under advanced stage of obtaining clearances and would be completed in less than one year time at a cost of about Rs,100 crores.
Single Point Mooring (SPM) Off-Ennore for crude oil unloading
CPCL is also evaluating the proposal for the installation of an SPM off Ennore for Crude Oil imports for its Manali Refinery. Most Pre-Project activities have been completed including Marine Geo-physical study, Geo-technical study, Pipeline route survey and Soil investigation. The Environment studies are in progress. Detailed Engineering for On-shore portion is in progress. This project is expected to be completed in 36 months from the time of final approval and is expected to cost around Rs.1200 crore.
Revamp of Ref.II for Capacity Expansion:
Capacity of Crude and Vacuum Distillation Unit of Refinery-II is proposed to be enhanced from 3.7 MMTPA to 4.3 MMTPA at a cost of about Rs. 333 crore.
Corporate Social Responsibility:
An amount of Rs. 169.78 lakh has been spent on Corporate Social Responsibility activities in and around Manali and CBR Focusing on Education, health Care and Sanitation, Women empowerment, Sports Development, Socio-cultural activities Flood relief to Tamil Nadu Chief Ministers’ Relief fund and Karnataka Flood Relief Fund and other infrastructure development.
Awards
CPCL CBR was awarded “Award for TPM Excellence, category A” indicating that Total Productive Maintenance (TPM) is implemented in entire CBR, by Japan Institute of Plant Maintenance (JIPM).
CPCL was shortlisted as one of the top 25 companies adopting good Corporate Governance Practices in the year 2009 by Institute of Company Secretaries of India (ICSI). CPCL has achieved this excellence for the fourth time in a row.
CPCL has been awarded the Golden Peacock Award for Occupational Safety and Health by Institute of Directors for its pioneering efforts in the field of Occupational Health in the Oil Sector and for the most significant improvements and innovative activities practiced in the field of Occupational Health and Safety.
CPCL was selected one of the recipients of prestigious Corporate Social Responsibility (CSR) award by Rural Development and Panchayat Raj Department, Govt. of Tamil Nadu.
CPCL was awarded highest excise duty payer award in the Large Tax Payer category by the Central Excise Department.
***** |
