Essar Oil Q1 revenue up 12% Y-O-Y at Rs24,721 crore
Essar Oil, India’s second largest private refiner and part of UK-listed Essar Energy plc, today reported a 12% increase in revenue to Rs24,721 crore for Q1 FY14, compared to Rs22,109 crore reported in Q1FY13, on the back of 15% improvement of throughput, which stood at 5.14 MMT during the quarter, against 4.48 MMT during the same period in FY13, said in the company's press release.
The EBITDA was at Rs 1,106 crore compared to negative Rs 178 crore in Q1 FY13. The Current Price Gross Refining Margin stood at $7.01 / bbl in Q1 FY14 up 49% over $4.69 / bbl in Q1 FY13, reflecting the higher complexity benefits post completion of expansion and optimization projects.
The company reported a net loss of Rs863 crore during the quarter, mainly due to negative forex fluctuations arising out of 10% rupee depreciation during the quarter. Essar Oil follows a very prudent risk management policy to hedge all its risks against currency fluctuations. As a result, the forex variations are mostly of mark-to-market nature, which is recoverable through sales or GRM in next quarters and hence have cash and earning neutral impact during the full financial year.
For the quarter, the refinery processed 5.14 metric million tonnes (MMT) of crude, up 15% in Q1 FY14 over Q1 FY13. The refinery continues to function at over its nameplate capacity of 20 MMTPA for the last four consecutive quarters with all units stabilized. During the quarter, the refinery operated at 103% of its capacity.
Share of ultra heavy crude in refinery’s crude diet rose to 56% in the reporting quarter from 48% in the same period last year. Overall, the refinery processed 92% of heavy and ultra heavy crude in Q1 FY14.
Production of valuable middle and light distillates share in the overall crude slate improved to 84% in Q1 FY14, from 82% in Q1 FY13 with the capability to produce Euro IV and V grade products.
