Chennai Petroleum Corporation Ltd., a subsidiary of Indian Oil Corporation, has announced an impressive final dividend of ₹55 per share for the financial year 2024. This significant payout marks a substantial increase from the previous year’s dividend of ₹27 per share.

This generous dividend declaration has led to a surge in Chennai Petro shares, with the stock currently trading 12% higher at ₹1,041.05, reaching a record high. Over the past year, the stock has experienced remarkable growth, soaring by nearly 300%. In the first four months of 2024 alone, it has risen by almost 50%.

The total payout of ₹819 crore, which constitutes nearly 30% of the company’s full-year net profit of ₹2,711 crore, underscores the company’s commitment to rewarding its shareholders.

The December quarter also brought positive news for Chennai Petro, with a net profit of ₹628 crore, marking a 71% increase compared to the same quarter last year. Despite flat revenue, there was a 2% growth from the previous quarter, reaching ₹17,720 crore. Additionally, the Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) increased significantly by 53.2%, reaching ₹1,042 crore, with a corresponding margin expansion to 5.88%.

Furthermore, the Gross Refining Margins (GRM) for the quarter showed a remarkable improvement, standing at $7.71 per barrel compared to a negative $16.6 per barrel previously. GRM reflects the difference in value between refined products sold and feedstocks consumed per barrel of crude oil processed.

The market’s positive response to Chennai Petro’s performance is evident in its sustained monthly gains, having risen for 14 consecutive months. The last instance of a monthly decline was observed in February 2023.

As the company gears up to announce the record date for the final dividend, investors eagerly anticipate further updates on its continued growth trajectory.