 "Essar Oil posts seven fold jump in Q3 net at Rs 364 crore")
The company, in its last reported results as a listed entity, reported a net profit of Rs 364 crore as compared to Rs 52 crore in the same quarter last fiscal (2014-15). "This quarter's performance has been excellent amid challenging economic environment. The earlier highest GRM was $11.05 per barrel in June 2015," Managing Director and Chief Executive L K Gupta said.
Essar Oil's GRM stood at $7 per barrel in the December 2014 quarter. The company's refinery throughput in December quarter stood at 4.24 million tonne, compared with 5.19 MT in the same period of the previous year. "The decline in throughput was due to the planned shutdown of 30 days which was completed in 28 days ended 15 October 2015," Gupta said.
The company's total income during the quarter stood at 11,343 crore, down 49 per cent as compared to Rs 20,554 crore posted in the corresponding quarter last fiscal. Gupta said the decline in revenues was due to the fall in oil prices and lower throughput due to the continuation of shutdown for 15 days during the quarter. For the nine months ended December 2015, Essar Oil's GRM was $10.45 per barrel as compared to $7.69 per barrel in the same period last fiscal.
Essar Oil Chief Financial Officer (CFO) Suresh Jain said the company managed to report excellent financial performance despite shutdown and inventory impact due to fall in oil prices. "Our profitability is further expected to improve pursuant to overall improvement in crude mix and product slate post shut down," Jain said.
He added the company's retail business' contribution in overall revenue has improved to 16 per cent compared to 6 per cent in third quarter 2014-15. Jain informed Essar Oil commissioned 220 new retail outlets during the third quarter taking the total operational outlets to 1,910. In addition, 2,186 new outlets are under implementation.
The firm's total retail sales volume during the quarter rose 87 per cent to 448 Kiloliter from 239 Kiloliter in the corresponding period last year. At its flagship Raniganj Coal Bed Methane (CBM) block the company produced 655,000 standard cubic meter of gas. According to Gupta the company is on course to ramp up production to 2.5 mmscmd by 2017-18.
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The promoters of Essar Oil had completed the delisting process from the National Stock Exchange and Bombay Stock Exchange after agreeing to pay Rs 262.8 per share to the public shareholders. As a result, trading in shares of Essar Oil will halt from 10 February and delisting will be effective from 17 February 2016.
Gupta also rejected as rumours recent reports on how the Essar Group, controlled by billionaire Ruia brothers, may be looking at selling stake in its refinery business. The Group has been seeking to sell 49 per cent stake in the refinery unit to Russian company Rosneft. That deal is likely to be completed soon, Gupta said. He also said that post the lifting of economic sanctions on Iran, Essar Oil's crude imports from that nation will depend on purely economic considerations.
The company's share price at the BSE today closed at Rs 262.60, down 0.15 per cent as compared to previous close.