Chennai Petroleum Corporation Addresses Share Volume Surge, Cites Market Factors

Chennai Petroleum Corporation Limited (CPCL) has recently responded to inquiries from stock exchanges regarding a significant increase in its share trading volume. The company, known for its operations in the petroleum refining sector, has clarified its position on the matter.

Key Points of CPCL's Response

Regulatory Compliance: CPCL affirmed that it has disclosed all required information under SEBI regulations.
No Undisclosed Information: The company confirmed that there is no unpublished price-sensitive information that needs disclosure.
Market-Driven Movement: CPCL attributed the recent volume movement in its shares to market-driven factors.

Recent Financial Performance

While addressing the share volume surge, it's worth noting CPCL's recent financial performance as disclosed in their latest press release:

Metric	Q2 FY2025-26	Q2 FY2024-25
Crude Throughput	3.01 MMT	2.10 MMT
Capacity Utilization	114.00%	-
Revenue from Operations	₹20,034.00 crore	₹14,424.00 crore
Profit After Tax (PAT)	₹732.00 crore	(₹629.00 crore)
Gross Refining Margin (GRM)	$9.04/barrel	($1.63/barrel)

Operational Highlights

Record Performance: CPCL achieved its best-ever distillate yield of about 80%, showcasing operational excellence.
Improved Margins: The company's Gross Refining Margin showed substantial improvement year-over-year.
Turnaround: CPCL reported a significant financial turnaround, moving from losses to profits in both quarterly and half-yearly results.

The company's clarification on the share volume surge, coupled with its strong recent financial performance, provides context for the increased market interest. However, as CPCL stated, the recent trading volume increase appears to be driven by market factors rather than any undisclosed company-specific information.

Investors and market participants are advised to consider this information in the context of broader market trends and individual investment strategies. As always, it's crucial to conduct thorough research and consider multiple factors when making investment decisions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.59%	+8.85%	+6.49%	+31.21%	+19.36%	+1,002.24%

Chennai Petroleum Corporation (CPCL) has reported a net loss of Rs 40.00 crore for the first quarter, a significant downturn compared to a net profit of Rs 484.00 crore in the same quarter last year. The company's revenue also declined by 8% to Rs 18,683.00 crore during this period.

Operational Assurance Amid Geopolitical Concerns

CPCL's Managing Director, H Shankar, has provided reassurance regarding the company's operations in light of potential restrictions on Russian oil imports. Shankar stated that such restrictions would not affect the company, as CPCL has already secured its crude requirements for the next two months through mid-September.

Procurement Strategy

The company employs a forward-looking procurement strategy, placing crude orders two months in advance. This approach, coupled with diversified sourcing options, including opportunities in the West African market, helps CPCL maintain a stable supply chain. It's worth noting that CPCL does not directly procure crude oil; instead, its parent company, Indian Oil, handles the sourcing and procurement processes.

Financial Performance

The financial results for the quarter reveal some challenges faced by the company:

Metric	Q1 FY2026	Q1 FY2025	Change (%)
Revenue	14,838.00	17,114.00	-13.30
EBITDA	124.00	682.00	-81.77
Net Profit	-40.00	357.00	-111.23
EPS	-2.69	23.98	-111.22

Factors Affecting Performance

Shankar attributed the company's challenges to crude price fluctuations, which ranged between $60-78 per barrel during the quarter. He also noted that inventory stocks experienced significant deviations, impacting the financial outcomes.

Operational Metrics

Despite the financial setbacks, some operational metrics showed resilience:

Sales volume remained relatively stable, with a marginal decrease of 13.35% compared to the same quarter last year.
The company managed to reduce its expenses by 10.45% year-over-year, indicating efforts to optimize costs in a challenging environment.

Looking Ahead

While the quarter presented challenges, CPCL's proactive approach to crude procurement and its ability to navigate through market volatilities suggest a focus on long-term stability. The company's strategy of maintaining diversified sourcing options may help in mitigating risks associated with geopolitical uncertainties in the oil market.

As global oil markets continue to face uncertainties, CPCL's performance in the coming quarters will be closely watched by investors and industry analysts alike.