Essar Oil

Essar Oil owns India’s second largest single site refinery having a capacity of 20 MMTPA and complexity of 11.8, which is amongst the highest globally. For Q3Fy13, YoY, the performance looks good with a net profit at Rs.32 crore compared to a net loss of Rs.3986 crore in Q3FY12. But sequentially, net profit is down 69%. This was despite a 14% rise in net revenue at Rs.23817 crore. A 14% rise in operating costs and the gargantuan interest outgo of Rs.882 crore pushed the profit down sequentially. Its total interest outgo at the end of 9MFY13 stood at Rs.2504 crore, a 162% jump on YoY. Though the company has posted a net profit for past two quarters, it continues to remain in the red for 9MFY13, with a net loss at Rs.1381 crore.

Its GRM for the quarter was at $9.75 per barrel, up 350% compared to $2.82 per barrel in Q3FY12 reflecting the higher complexity benefits post completion of expansion and optimization projects. During the quarter, Vadinar Refinery processed 5.14 MMT of crude, up 83% over Q3FY12. The refinery is now functioning at over its scheduled capacity of 20 MMTPA with all units stabilized. Share of Ultra Heavy Crude in the refinery’s crude diet rose almost three fold to 67% on YoY and production of valuable Middle and Light distillates improved to 85% of the refinery’s product slate from 69% on YoY. Heavy and Ultra Heavy Crude constituted 84% of the refinery’s crude diet during the quarter, against 74% in Q3FY12. At Essar Oil’s flagship Raniganj CBM block, current gas production is around 55,000 standard cubic metres per day (scm/d), against 30,000 scmd a year ago. The company has completed drilling 120 wells. Environment Clearance III approvals for 618 wells is in progress. FY14 should see the company really shine bright and it has made that beginning in current fiscal.