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Essar Oil net profit up 78% at Rs 321 crore & Govt fixes price of Essar Oil gas at $5.25 mmBtu

13 Apr 2011 Evaluate

Riding on higher refining margins, Essar Oil reported a 78 per cent rise in fourth-quarter net profit at Rs 321 crore, compared to Rs 180 crore a year earlier. Revenues for the January-March period jumped 24 per cent to Rs 14,846 crore. Refining margins, or earnings on converting a barrel of crude oil into products, were $8.15 a barrel compared with $5.37 a year ago. The net profit growth was majorly driven by record refinery throughput of 14.76 million tonnes per annum and a healthy uplift of over 80 per cent in gross refinery margins.
Essar Oil’s Vadinar refinery on the west coast continued to operate well above its nameplate capacity of 10.5 million tonnes per annum. It processed a record 14.76 million tonnes of crude oil in 2010-11, nine per cent higher than last year.  The expansion of Vadinar refinery is progressing on schedule. The company is expanding the refinery to 18 million tonnes a year by 2011 and to 20 million tonnes by September 2012. Essar Oil has 1,635 petrol pumps, of which 1,381 are operational and 254 are in various stages of construction.
In another development, the Union government has fixed $5.25 per million British thermal unit (mmbtu), as the provisional sale price of gas Essar Oil is producing from its Raniganj Coal Bed Methance (CBM) block in West Bengal. At Raniganj, Essar Oil’s first CBM block under development, 33 wells are currently producing about 35,000 standard cubic meters per day of gas.

Peers
Company Name CMP
Reliance Industries 1353.65
Indian Oil Corp. 147.40
BPCL 318.05
HPCL 384.70
MRPL 180.75
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