Chennai Petroleum Corporation Ltd
NSE:CHENNPETRO
Chennai Petroleum Corporation Ltd
Chennai Petroleum Corp. Ltd. engages in the manufacturing, marketing, distributing, and supplying of petroleum and other related products. The company is headquartered in Chennai, Tamil Nadu and currently employs 1,486 full-time employees. The firm has approximately two refineries with a combined refining capacity of over 11.5 million tons per annum (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. Its second refinery is located at Cauvery Basin at Nagapattinam, which is set up with a capacity of approximately 1.0 MMTPA. The Company’s products include liquefied petroleum gas (LPG), motor spirit, superior kerosene, aviation turbine fuel, high speed diesel, high splash diesel, light diesel oil, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane, micro crystalline wax, pet coke and petrochemical feed stocks.
Chennai Petroleum Corp. Ltd. engages in the manufacturing, marketing, distributing, and supplying of petroleum and other related products. The company is headquartered in Chennai, Tamil Nadu and currently employs 1,486 full-time employees. The firm has approximately two refineries with a combined refining capacity of over 11.5 million tons per annum (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. Its second refinery is located at Cauvery Basin at Nagapattinam, which is set up with a capacity of approximately 1.0 MMTPA. The Company’s products include liquefied petroleum gas (LPG), motor spirit, superior kerosene, aviation turbine fuel, high speed diesel, high splash diesel, light diesel oil, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane, micro crystalline wax, pet coke and petrochemical feed stocks.
Operational Outperformance: CPCL delivered crude throughput at 99.5% of installed capacity for the year and 113% in Q4, showing strong operational efficiency even during maintenance shutdowns.
GRM Premium: Q4 gross refining margin (GRM) was $6.22 per barrel, significantly above the Singapore benchmark of $3.1, helped by efficiency and product mix, with minimal contribution from inventory gains.
Profit Decline: Annual GRM dropped to $4.22 from $8.64 largely due to weaker international refining margins, driving lower profits and a reduced dividend.
CapEx & Expansion: The Cauvery refinery project has a revised cost of INR 36,354 crores and is a JV with Indian Oil; maintenance and new value-added projects will boost CapEx to INR 700–800 crores per year if new projects proceed.
Product Innovation: Launched pharma-grade hexane and trialed sustainable aviation fuel (SAF); ongoing focus on developing new, higher-value products.
Market & Sourcing: About 55–60% of crude is secured on term contracts, with the rest as ‘opportunity’ crude taking advantage of occasional discounts; product demand in the southern market remains robust.
