Strong quarterly performance from Essar

Essar Oil has reported its best ever quarterly performance, with the highest ever PAT, EBIDTA and CP GRM in the first quarter of its financial year 2015 – 2016. The gross revenues for the quarter stood at Rs 20 572 crore, which is 25% lower than the Rs 27 317 crore reported in Q1FY15. This dip in revenues was mainly due to lower crude oil prices prevailing in the global market.

Refinery performance

During the April 2015 – June 2015 quarter, the Vadinar refinery continued to operate above its rated capacity, registering a throughput of 5.17 million t. With its increased complexity, post the expansion and optimisation projects that were completed in 2012, the refinery continues to process a high volume of heavy and ultra heavy crudes that enable better refining margins. In terms of finished products, the refinery continues to produce a high proportion of light and middle distillates that also have a positive impact on margins.

Comments

LK Gupta, Managing Director and CEO, Essar Oil said, “it is encouraging to begin the fiscal year with such strong performance. For the 12th consecutive quarter, our refinery has continued with its trend of registering steady and strong performance by operating beyond its rated capacity. The planned 30 day refinery maintenance shutdown between September and October this year will help us complete our diesel maximisation project, which will enable us to convert lower margin intermediates like VGO to higher margin distillates like diesel. This will further improve our refining margins. Our retail expansion is on track and we are witnessing encouraging response and improvement in sales.”

Suresh Jain, CFO, Essar Oil said, “we have declared record quarterly results on the back of stellar operating and financial performance. Consistent strong financial performance has improved all financial parameters and ratios in the last two years. We are confident of further reduction in our interest cost through the ongoing dollarisation programme.”

Edited from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/refining/30072015/essar-results/