Key Highlights
• Record Performance
• Crude throughput reached 11.64 million metric tons, exceeding installed capacity.
• Achieved lowest Energy Intensity Index and highest annual production of petroleum products, including RLNG.
• Financial Performance
• Gross refining margin (GRM) for FY24: $8.64 per barrel, outperforming Singapore benchmark.
• Significant debt reduction from INR 4,200 crores to INR 2,700 crores.
• Recommended record dividend of INR 55 per share, pending shareholder approval.
• Project Updates
• Advancing Cauvery Basin Refinery project.
• Joint venture refinery project with IOCL: 9.8% physical progress, revised completion timeline of 36 months plus 3 months for commissioning.
Strategic Focus
• Agile Governance and ESG Commitment
• Emphasis on enhancing disclosure practices and stakeholder confidence.
• Acknowledgment of global uncertainties affecting crude oil prices.
• Debt Management
• Balanced approach to dividends and debt repayment.
• Planned capital expenditure (capex) of INR 3,000 crores for CBRPL project, with INR 1,000 crores already spent.
Operational Insights
• Refining Capacity and Production
• Current refining capacity: 10.5 million metric tons; new 9 MMTPA refinery expected in three years.
• Anticipated stable volume growth of 11 to 12 million metric tons.
• Yield and Efficiency
• Distillate yield for FY '24: 76.2%, with potential for improvement.
• Fuel and loss percentage at 8.81%, with room for enhancement.
Future Outlook
• Capex and Project Financing
• Total capex for FY '25 estimated at INR 600 to 650 crores.
• Nagapattinam refinery project cost revised to INR 36,354 crores, with CPCL's equity share at 25%.
• Crude Sourcing and Market Conditions
• Crude sourcing mix: 47% Middle East, 13% indigenous, 9-10% Africa, remainder from spot markets.
• Decreased premiums for crude compared to previous quarters.
• Debt-to-Equity Ratio
• Successfully reduced to manageable levels, focusing on balancing dividends with growth and capital needs.

Chennai Petroleum Corporation Limited (CPCL) Q4 and FY23 Earnings Call Summary
Key Highlights
• Record Throughput: Achieved 11.31 million tonnes per annum (TPA).
• Russian Crude Processing: Constituted 13% of capacity; operational expenditure of $1.7 per barrel for FY23.
• Fuel and Loss Rate: Reported at 9.06% with improved distillate yield.
Financial Performance
• Windfall Tax Impact: Rs. 700 crores for Q4; over Rs. 4,000 crores for FY23.
• Inventory Loss: Rs. 170 crores for Q4; Rs. 680 crores for FY23.
• Working Capital: Approximately Rs. 3,800 crores.
Capital Expenditure (CAPEX) Plans
• New Greenfield Refinery: Estimated CAPEX of Rs. 31,500 crores for 9 million tonne capacity.
• Annual Maintenance CAPEX: Rs. 200-300 crores planned; no major projects currently approved.
• Land Acquisition: 30-40% of required land for new refinery acquired.
Operational Strategies
• Gas Usage: Currently using 1 MMSCMD, potential increase by 50-60% if prices remain favorable.
• Focus on Value-Added Products: Future projects may prioritize high-margin products over crude capacity increases.
Shareholder Engagement
• Dividend Distribution: Decisions based on cash flow and project opportunities; commitment to rewarding shareholders.
• Investor Communication: Management acknowledged the need for more frequent updates and committed to improving communication.
Future Outlook
• Throughput Maintenance: Anticipated to maintain around 11 million metric tons annually.
• Crude Sourcing: Currently sourcing primarily through spot contracts; no term contracts signed yet.
• Equity Structure: Discussions on potential bonus issues and additional equity in the future.
Investor Inquiries
• Contingency Provisions: Rs. 217.06 crore provision confirmed for indirect taxes.
• Gross Refining Margins (GRMs): Reported at 8.2 for Q4, decreased to 3.
• Refinery Efficiency: Management exploring projects to enhance margins and improve efficiency.
Conclusion
• CPCL aims to optimize operations while navigating market fluctuations, with a strong focus on maintaining financial health and shareholder value.