Guwahati, Sept. 7: Numaligarh Refinery Limited has chalked up a Rs 8,955-crore plan in the Twelfth Five Year Plan for its expansion.
Refinery officials made this announcement here today at the refinerys 19th annual general meeting.
R.K. Singh, chairman and managing director of Bharat Petroleum Corporation Limited and chairman of NRL, presided over the meeting, which was attended by NRLs managing director Dipak Chakravarty and other members of the board.
In 2011-12, the refinery recorded its highest sales turnover of Rs 14,027.75crore, a growth of 56.4 per cent over the previous year.
However, profitability was affected primarily becasue of the negative impact of duty restructuring in June 2011.
The companys profit before tax was recorded at Rs 287.46 crore and net profit at Rs 183.70 crores.
The Telegraph had reported in its September 7 edition that the net profit would dip below Rs 200 crore owing to duty restructuring.
A dividend of 10 per cent for 2011-12 on the paid up share capital was declared at the AGM.
The company stressed the need for long-term sustainability and growth. And realising that it faces several challenges like its sub-economic size the refinery is going in for expansion.
The company plans to expand its refining capacity from 3 million metric tonnes per annum to 8/9 million metric tonnes per annum together with the option of sourcing and transporting the additional crude oil through a pipeline.
It is also exploring possibilities for diversification into other sectors with promising potential, such as power generation, pipelines, exploration and production.
The refinerys location is in close proximity to countries like Bangladesh, Bhutan and Myanmar, and this presents another opportunity of natural markets for its products.
The company is also looking at growth opportunities via implementation of value added projects.
The Rs 577-crore wax project envisages production of high value low-volume paraffin and microcrystalline wax utilising inherent properties of Northeast crude.
The project is scheduled for completion by December 2013. The Naphtha Splitter Project involving a project cost Rs 87 crore is targeted for completion in third quarter of 2012-13.
On the physical front, NRL achieved its best ever-physical performance during the year. Besides highest ever processing of 2,825 thousand metric tonnes (TMT) crude against 2,250 TMT in the previous year, the distillate yield (yield of high value liquid petroleum products) of the company during the year was recorded at 91.52 per cent, which was the highest in the Indian refining industry.