The Hindu Business Line : CPCL net rises in third quarter

CHENNAI Petroleum Corporation's net profit for the quarter ended December 31, 2003 has gone up by about three times over that of the previous corresponding quarter. During this period, income from operations has gone up by 5.7 per cent.

The company had posted a net profit of Rs 105.26 crore on an income of Rs 2,387.19 crore for the third quarter of this year against a net profit of Rs 32.38 crore on an income of Rs 2,257.58 crore for the same period last year.

According to Mr S.V. Narasimhan, Managing Director, Chennai Petroleum Corporation Ltd, the improved performance is due to better refining margins, higher throughput and production of more high value products, and reduced financing costs.

Interest charges during the quarter were down 78 per cent to Rs 5.04 crore from Rs 23.62 crore for the previous corresponding period.

Mr Narasimhan said refining margins were favourable right from the beginning of this year, while the company achieved higher throughput and also produced more high value products.

He said CPCL had pre-paid about Rs 150 crore of loans carrying an interest of 11 per cent to 14 per cent, readjusted about Rs 500 crore of the Oil Industry Development Board loans with an interest of 9.75 per cent to an interest of 6.5 per cent now.

The company is now able to get short-term loans at about 4.5 per cent against 9 per cent to 10 per cent earlier.