Chennai Petroleum hit a new 52-week low after a set of disappointing numbers for Q4FY13. It posted a net loss of Rs.393 crore, down from the loss of Rs.465 crore in Q3 but certainly worse off than the net profit of Rs.107 crore for Q4FY12. It has ended the fiscal with a whopping Rs.1767 crore net loss compared to a net profit of Rs.62 crore in Fy12.

Its gross refining margin (GRM) which is the difference between crude price and value of petro products it produces, was down sharply from $4.46/barrel to a meager $0.80/barre (YoY)l. This is a huge fall compared to GRM of 1.56/barrel in Q3 and US$ 4.6/barrel. Obviously falling crude prices are not a matter of rejoice for this company!

The company has received as per the formula worked out by Petroleum Planning and Analysis Cell (PPAC), discount of Rs.2505 crore for FY13 from ONGC, on crude purchased compared to Rs.3380  crore received in FY12. It has passed the benefit to Indian Oil Corporation which holds 51.89% stake in Chennai Petroleum. It is now planning on expanding its Manali facility at a cost of Rs.3350 crore. This expansion is expected to increase the GRM by at least $1/barrel. It would take over 3 years for the project to go on stream.