CPCL gains as expansion project at Manali reportedly gets green nod

Chennai Petroleum Corporation rose 0.79% to Rs 121.90 at 15:16 IST on BSE on reports the company has got environment clearance for its Rs 3350-crore expansion project at the Manali refinery in Chennai.

Meanwhile, the S&P BSE Sensex was down 14.03 points or 0.08% at 18,436.20

On BSE, 585 shares were traded in the counter as against average daily volume of 19,458 shares in the past one quarter.

The stock hit high of Rs 123 and a low of Rs 121 so far during the day. The stock had hit a 52-week high of Rs 162 on 18 January 2013. The stock had hit a 52-week low of Rs 107 on 22 March 2013.

The stock underperformed the market over the past one month till 5 April 2013, sliding 5.66% compared with the Sensex's 3.62% fall. The scrip had also underperformed the market in past one quarter, declining 13.88% as against Sensex's 6.74% fall.

The small-cap crude oil refiner has equity capital of Rs 149 crore. Face value per share is Rs 10.

Chennai Petroleum Corporation (CPCL) has reportedly got environment clearance for its Rs 3350-crore expansion project at the Manali refinery in Chennai. Proposed two years ago, the project aims to maximise the refinery margins at least by $1 a barrel. It will produce more high value distillates and enable the company to process more of the cheaper high-sulphurous crude, reports added.

Reports further indicated that the project would help process heavier, high sulphur crude, which is also cheaper. The distillate yield would go up by 7% and it would mostly be in the form of more petrol, diesel and liquefied petroleum gas.

The clearance was delayed mainly because of a ban imposed by the Ministry of Environment and Forests (MoEF) on new expansion projects in the Manali industrial region. However, a study conducted in September 2011 had pointed out pollution levels had significantly dropped in the region, compared with previous years. The final DFR (draft final report) was completed in 2012 and the investment approval has been obtained.

Now, as the project got the ministry's clearance, it will take close to three years to finish the project, reports added.

The expansion project includes a coker unit (2.2 million tonnes per annum) and a sulfur recovery unit at the Manali Refinery Complex. CPCL is also proposing to set up a petroleum coke storage facility about 3.5 km from the refinery.

CPCL reported a net loss of Rs 464.83 crore in Q3 December 2012, higher than net loss of Rs 63.41 crore in Q3 December 2011. Net sales rose 4% to Rs 11593 crore in Q3 December 2012 over Q3 December 2011.

State-run oil refining-cum-marketing giant Indian Oil Corporation (IOC) holds 51.89% stake in CPCL as per the shareholding pattern as on 31 December 2012.

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