Chennai Petro extends rally post Q1 results, capex plans; stock surges

NEW DELHI: Chennai Petroleum Corporation, a group company of Indian Oil Corporation, surged 6.3 per cent in trade on Tuesday after a top official said that the company has lined up about Rs 1,392 crore capital expenditure plans, including laying of crude oil pipeline, for this year.

The company on Monday reported a strong 81% year-on-year (YoY) jump in net profit at Rs 924 crore for the quarter ended June.

"Our capex plan for this year is Rs 1,392 crore... our resident upgradation project is going on. We will be spending about Rs 1,100 crore of the total estimation of Rs 3,110 crore," Gautham Roy, Managing Director, Chennai Petroleum Corporation, was quoted as saying in a PTI report.

"Then, we will be investing for crude oil pipeline and for small projects", Roy said.

Elaborating about the two projects, he said the Resident Upgradation Project involves construction of major units like delayed coker unit, sulphur recovery unit and other utilities and offsite packages.