Chennai Petroleum Corporation Ltd's (NS:CHPC) standalone revenue for the quarter came in at Rs9,788.1cr, registering 43.4% yoy increase. Chennai Petroleum Corporation Limited has informed the Exchange that the Board of Directors of the Corporation, at its meeting held on May 10, 2018, has recommended a final dividend of Rs.18.5 per Equity Share (i.e., 185% on the Paid-up Equity Share Capital) and Preference Dividend of Rs. 0.665 per Preference Share (i.e., 6.65% on the paid up Preference Share Capital) for the financial year 2017-18, subject to approval of the shareholders at the ensuing Annual General Meeting of the Company.
Let's have a look at Company profile.
Chennai Petroleum Corporation Limited is a small-cap stock with a market capitalization of ₹48.20B. Popularly called Chennai Petro, Chennai Petroleum Corporation Limited NSE: CHENNPETRO operates in downstream petroleum sector. Chennai Petroleum Corporation Ltd (CPCL) was incorporated as Madras Refineries Ltd in 1965. The company produces petroleum products, lubricants, and additives. CPCL also provides high-quality feed stock, such as propylene, superior kerosene, butylenes, naphtha, paraffin wax, and sulphur.
CPCL is largest refinery in south India with a total installed capacity of 11.5 MMTPA with IOCL holding 51.9% stake in the firm as at 30 Sep 2017. CPCL has approximately two refineries with a combined refining capacity of over 11.5 million tons per annum.
The Company has two refineries located in Tamil Nadu – the first Manali Refinery at Chennai with a capacity of 10.5 MMTPA and the second Cauvery Basin Refinery at Cauvery Basin near Nagapattinam with a capacity of 1.0 MMTPA.
The Manali Refinery has a capacity of approximately 10.5 MMTPA and is a refinery with fuel, lube, wax and petrochemical feedstocks production facilities. CPCL's second refinery is located at Cauvery Basin at Nagapattinam, which was set up in Nagapattinam with a capacity of approximately 0.5 MMTPA 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 over 30,000 tons per annum, which is designed to produce paraffin wax for manufacture of candle wax, waterproof formulations and match wax.
Joint Ventures:
Indian Additives Ltd (IAL): CPCL has entered into a joint venture with Chevron (NYSE:CVX) Chemical Company (now Chevrone Oronite Co) for manufacturing of lube additive components and packages. CPCL and Chevron hold 50% each in the share capital of IAL. IAL reported turnover of Rs 642.4cr against the Rs 650.3 cr in FY16, and reported PAT of Rs 55.3 cr against the Rs51.1 cr in FY16.
National Aromatics and Petrochemical Corporation Ltd (NAPCL): CPCL has entered into a joint venture with M/s Southern Petrochemical Industries Corporation Ltd (NS:SPIC) for manufacturing of PTA, Paraxylene, Orthoxylene and Benzene, CPCL and SPIC hold 50% each in the share capital of NAPCL. This is not operational.
Market Cap.: ₹ 4,476.28 Cr.
Book Value: ₹ 272.47
Stock P/E: 4.94
Dividend Yield: 7.98%
Face Value: ₹ 10.00
Return on Equity:
- 10 Years: 10.35%
- 5 Years: 4.71%
- 3 Years: 27.8%
- TTM: 36.29%
