Shares of Chennai Petroleum Corporation Ltd., a subsidiary of Indian Oil Corporation (IOC) fell as much as 12% on Wednesday after the company slipped into a loss during the September quarter.
Chennai Petro reported a net loss of ₹633.7 crore for the July-September period, compared to a net profit of ₹343 crore during the June quarter.
Revenue for the quarter fell to ₹12,086 crore, a drop of 29% from the June quarter, when the topline figure stood at ₹17,095 crore.
Chennai Petro’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) came in at a loss of ₹643 crore, while in the June quarter, that figure stood at a positive ₹343 crore.
Gross Refining Margins for the quarter also slipped into the negative of $1.5 per barrel from a positive figure of $6.33 per barrel in June.
Gross Refining Margin is the difference between the value of petroleum products produced by an oil refinery and the price of crude oil used to make them. It is calculated per barrel of crude oil processed.
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In the second week of October, Bloomberg reported that Chennai Petroleum Corporation is in talks with banks to raise a ₹28,000-crore ($3.3 billion) loan to help build a major oil refinery in South India.
The state-owned company has already received expressions of interest, and the State Bank of India will lead the transaction, according to sources who prefer to remain unnamed. It would be the second-biggest local currency loan in India this year.
The funds will help build a proposed nine million-tonne-a-year oil processing plant in Tamil Nadu, at a total cost of around ₹33,000 crore. Chennai Petroleum Finance Director Rohit Agrawala said in April the project would take 36 months to complete, once it has been approved by the central government.
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Shares of Chennai Petroleum Corporation are currently trading 10.5% lower at ₹786.8. The stock is down nearly 40% from its recent peak of ₹1,277.
Content retrieved from: https://www.cnbctv18.com/market/stocks/chennai-petroleum-corporation-share-pricer-ioc-arm-q2-results-net-loss-revenue-falls-19497128.htm.
