Essar Oil has reported financial results for the quarter and financial year ending 31 March 2015.
Results for FY14-15
Gross revenues for the fiscal year reached Rs 92 983 crore, 13% lower than the Rs 107 190 crore reported in FY14. The dip in revenues is mainly due to lower crude oil price, which fell by about 50% during the year. Average crude oil price for FY15 was lower by over 20% as compared to FY14.
Essar Oil reported their highest ever annual Current Price Gross Refining Margin for the year ending 31 March 2015 at US$8.37/bbl, as compared to US$7.98/bbl in FY14, up 5%.
Results for Q4FY15
Essar Oil's CP GRM for the January-March 2015 quarter was the highest ever at US$10.41/bbl against US$10.12/bbl reported in Q4FY14. Inspite of fall in crude oil prices, key product cracks have generally remained steady, resulting in robust refining margins.
EBITDA during the quarter stood at Rs 1804 crore, against Rs 2082 crore in Q4FY14. PAT for the quarter was at Rs. 546 crore, against Rs 1008 crore in Q4FY14.
During the quarter, Essar Oil realised 57% of its revenues from the domestic market. Exports were higher at 43% due to sluggish domestic demand and increased production from the newly commissioned PSU refineries.
Essar Oil has approximately1500 operational retail outlets nationwide, with another 1400 in various stages of implementation. With the government announcing deregulation of diesel prices on 19 October 2014, diesel retail sales from Essar Oil's outlets is gradually picking up. During the year, Essar Oil has more than doubled its retail volume from FY14. Essar Oil retail sales now account for 8% of its against 2% in the corresponding quarter last fiscal.
Exploration and Production
At our flagship Raniganj CBM Asset, we have achieved production of 0.62 million scm/d (standard cubic meters per day), making Essar Oil India's largest CBM gas producer. This is being sold to industrial consumers in the catchment area.
While 120 wells have been already placed on gas production, additional 142 wells have been drilled and presently are at various stages of the hydrofracking-completion-dewatering cycle for gas ramp up to 1.2 million scm/d over the next few months and 2.5-3 million scm/d finally. We have built a high quality infrastructure including gas conditioning and compression stations, in-field pipelines of 120km and last mile pipeline connectivity network to end users of approximately 60km. Essar anticipates completing the development program ahead of the May 2016 deadline as per the contract with the Government of India.
Adapted from press release by Joseph Green
Read the article online at: https://www.hydrocarbonengineering.com/refining/29052015/essar-oil-reports-financial-results-863/