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Essar Oil reports 10.7% revenue growth

Oilfield Technology,

Essar Oil Limited has reported revenue growth of 10.7% for the 12 month period ending 31 March 2014. Revenue reached Rs 107 190 crore, compared to Rs 96 797 crore for 2013 financial year (FY13). Throughput for the year was up 2.3% to 20.23 million t.

The current price gross refining margin was at US$ 7.98/bbl, compared to US$ 7.96/bbl for FY13. Premium over benchmark International Energy Administration (EIA) margin for the full year was at US$ 8.82/bbl, compared to US$ 6.80/bbl in FY13. This was achieved partially via improved crude diet: 93% heavy and ultra heavy crude processed in FY14 versus 86% in FY13; and stable product slate.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were Rs 4703 crore, compared to Rs 3651 crore for in FY13. Profit after tax stood at Rs 126 crore against a loss of Rs 1180 crore in FY13.

Quarter highlights

Essar Oil reported gross revenues of Rs 27 691 crore for the January – March 2014 (Q4FY14) quarter, up 7.5% over Rs 25 757 crore in Q4FY13.

Essar Oil’s current price gross refining margin for the quarter was US$ 10.12/bbl, compared to US$ 9.06/bbl in Q4FY13.

EBITDA for Q4FY13 was Rs 2053 crore, compared to Rs 1556 crore for the same time last year. Profit after tax stood at Rs 1008 crore against Rs 200 crore in Q4FY13.

The Vadinar refinery, at 20 million tpy capacity and 11.8 complexity, is India’s second largest single site refinery and among the most complex globally for a facility of this scale. During the quarter, it processed 5.05 million t of crude, which was almost at the same level of 5.08 t, processed during Q4FY13. Vadinar Refinery continues to operate above 100% capacity post expansion.

Mr L.K. Gupta, Managing Director and CEO, Essar Oil, commented on the results: “We are happy to report that the company has returned to profitability for the full year. Having breached the rupees on lakh crore revenue mark, Essar Oil is today one of India’s top 10 companies by topline, having achieved this distinction in a relatively short span of five years of beginning commercial production.

“Operationally, we continue to do well with the refinery further optimizing on its crude diet and product slate, which has resulted in the company delivering healthy gross refining margins of US$ 10.12/bbl.”

Mr Suresh Jain, CFO, Essar Oil, said: “This is the first full year of operations of our expanded refinery. We are happy to share that our company has demonstrated excellent financials backed by solid operating performance, which has resulted in improved gross refining margins, EBIDTA, and profit after teax for the quarter, and closed our financial year with a profit of Rs 126 crore”.

Adapted from a press release by Emma McAleavey.

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