Essar Oil Q4 net jumps 78% | business | Hindustan Times
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Essar Oil Q4 net jumps 78%

business Updated: Apr 11, 2011 23:11 IST
HT Correspondent

The Ruias controlled Essar Oil on Monday reported a year-on-year 78% net profit jump in its fourth quarter ending March 31 to Rs 321.0 crore, on the back of record refinery throughput and higher margins.

“This is a strong financial result driven by record refinery throughput of 14.76 million tonnes per annum and a healthy uplift of over 80% in gross refinery margins (GRMs),” said Naresh Nayyar, CEO and managing director, Essar Oil.

Essar Oil earned $8.15 for turning every barrel of crude oil into fuel in January-March quarter as against $5.37 per barrel gross refining margin (GRM) in the same period a year ago.

Revenues soared 24% to Rs 14,846.0 crore in the fourth quarter. For the full year 2010-11, net profit jumped to R654.0 crore as against R29.0 crore in the previous year.

“Demand for petroleum products in India is expected to continue to grow sharply and we remain focused on delivering our key projects, which in 2011 includes the first phase of our Vadinar refinery expansion,” he said.

Expansion of Vadinar refinery in Gujarat to 18 million tonnes per annum is on tract for mechanical completion in the second and third quarter of calendar year 2011.

“Optimisation project to enhance refinery capacity to 20 million tonnes a year is on track for completion by September, 2012,” he said.

Essar Oil has 1,635 petrol pumps, of which 1,381 are operational and 254 are in various stages of construction. For full year, gross revenues increased 25% to R53,119 crore from R42,402 crore in 2009-10.

Current price GRM registered an 87 per cent growth to $6.91 per barrel in 2010-11 from $3.70 a barrel in 2009-10.

Nayyar said Vadinar refinery continued to operate well above its nameplate capacity of 10.5 million tonnes per annum, processing a record 14.76 million tons of crude oil in 2010-11, 9 per cent higher than the 13.50 million tonnes of crude oil processed during 2009-10.