Measures to boost realisation include a naphtha splitter, low sulphur fuel oil foray
State-owned refiner Chennai Petroleum Corporation Ltd. (CPCL) , which posted a loss of ₹2,078 crore in FY20, has planned several initiatives for the current fiscal to improve its operational performance, said a top official.CPCL posted a pre-tax profit of ₹430 crore in the first quarter following improvement in crude prices though product margins continued to remain below the economic level and demand was only 70-75% of the normal. “We expect the demand to significantly improve by Q3 of FY21,” Chairman S.M. Vaidya told shareholders at the annual general meeting.“CPCL has initiated many measures to improve profitability and reduce operating costs and with good physical performance combined with these new measures, we are confident of better financial performance in the current fiscal,” he said.As part of measures to improve margin realisation, a naphtha splitter was being installed in crude unit II to split the naphtha into light and heavy grades. “This initiative will improve margin realisation of naphtha through exports and also help to consume part of the production within India as also contribute to improve the company’s gross refining margin,” Mr. Vaidya said.CPCL had also initiated action to manufacture low sulphur fuel oil, which has a better margin compared to other products. It also plans to raise hexane output from 20,000 MT to 36,000 MT per year during 2021-22 and later scale it up by an additional 15,000 MT per year in the near future. These efforts were expected to improve profitability by about ₹90 crore per year.Higher production of Lube Oil Base Stock (LOBS) products would also increase CPCL’s profitability, as margins from LOBS are quite high, he added.
You have reached your limit for free articles this month.
To get full access, please subscribe.
Already have an account ? Sign in
Show Less Plan
Subscription Benefits Include
Today’s Paper
Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.
Faster pages
Move smoothly between articles as our pages load instantly.
Unlimited Access
Enjoy reading as many articles as you wish without any limitations.
Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.
Personalised recommendations
A select list of articles that match your interests and tastes.
Briefing
We brief you on the latest and most important developments, three times a day.
*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.
A letter from the Editor
Dear subscriber,Thank you!Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.Suresh Nambath