Chennai Petroleum declined almost 15.5% today at Rs.198.30 on the back of a major surge in volumes. Its 20% LC for today is at Rs.187.35.

The market has given a big thumbs down to its Q2FY23 earnings. The company reported a 99% (QoQ) decline in standalone profit at Rs 28 crore, mainly impacted by the windfall tax on exports.

The Government of India with effect from 1 July 2022, levied duties on export of petroleum products at the rates notified on fortnightly basis, which have been reduced in the Refinery Transfer Pricing. This has resulted in lower revenue and profitability for the quarter.

Crude throughput in Q2 FY23 stood at 2.887 MMT, rising 48.51% from 1.944 MMT reported in the same period last year. Average gross refining margin (GRM) for Q2 FY23 stood at $4.44 per bbl as against $5.83 per barrel posted in the corresponding period a year ago, down 23.84% on a YoY basis.