Chennai Petroleum Shares Plunge After ₹633 Crore Q2 Loss

24 Oct 2024 , 10:52 AM

Chennai Petroleum Corporation Ltd. (CPCL), a subsidiary of Indian Oil Corporation (IOC), saw its shares drop by 12% on Wednesday following a weak September quarter performance.

At the time of writing on October 24, 2024 at 10:37 am, shares of Chennai Petroleum Corporation Ltd are trading at ₹772.35 which is a 9.76% gain than the previous close. Chennai Petroleum Corporation Ltd stock has gained a total of 44% in the last one year, and 9.67% since the beginning of the year.

The company reported a net loss of ₹633.7 Crore for the July-September period, compared to a net profit of ₹343 Crore in the June quarter.

Revenue declined 29% quarter-on-quarter, falling to ₹12,086 Crore, down from ₹17,095 Crore in the previous quarter.

CPCL’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) for Q2 showed a loss of ₹643 Crore, in contrast to a positive EBITDA of ₹343 Crore in the June quarter.

Gross Refining Margins (GRM) slipped into negative territory, at -$1.5 per barrel, down from $6.33 per barrel in the June quarter. GRM is the difference between the value of petroleum products produced and the cost of crude oil.

In October, reports suggested that CPCL is in talks with banks to raise a ₹28,000-Crore ($3.3 billion) loan to fund the construction of a major oil refinery in Tamil Nadu.

The proposed project, costing around ₹33,000 Crore, aims to build a 9 million-tonne-per-year oil processing plant, expected to take 36 months for completion after central government approval.