CPCL looks at bringing equity funding from Iranian promoter

Chennai Petroleum Corporation (CPCL), an Indian Oil Corporation (IOC’s) arm, on Monday said that it is looking to bring in equity contribution from one of its promoters, namely Naftiran Intertrade, the subsidiary of National Iranian Oil Company, in a bid to widen the capital base of the refinining major.

Untill now, there had been some restrictions to bring capital contribution form Naftiran Intertrade because of certain sanctions imposed by the US against Iran.

For CPCL, the presence of a Naftiran Intertrade’s shareholding had been reportedly a major concern in wake of US sanctions against the West Asian country. It was also considered as a stumbling block for the company’s rumoured merger plans with its parent IOC.

Speaking to reporters here on Monday, while announcing CPCL’s results , B Ashok, chairman, IOC said “at this point of time there is no consideration of the merger issue, and now we are looking at how Naftiran Intertrade can bring in equity into the project. So, at the point of time we are more working towards sustaining the partnership”.

He added, untill now they had some restrictions in terms of bringing in money. “Now that things are opening up in terms of the sanction issue and so, we have started discussion with them. We will like to see how it moves forward,” Ashok said.

CPCL net down 27% in Q4

Chennai Petroleum Corporation Limited (CPCL) on Monday reported a net profit of R265.59 crore for the fourth quarter as compared to Rs 364.57 crore in the corresponding quarter last fiscal, registering a drop of 27%.

The total income dropped by 33.4% to R5,869.65 crore from R8,823.95 crore.

The net profit for the quarter has come down owing to the lower fross refining margin of $5.07 per barrel during the quarter compared to $5.82 during the same period last year, B Ashok, chairman, IOC said.

Company’s average gross refining margin for 2015-16 was $5.27 a bbl as compared to $1.97 a bbl in 2014-15.

Indian Oil Corporation