Riding on the back of high refinery margins, London-listed Essar Energy Plc on Monday announced a 20% jump in net profit for calender year 2010. The Ruias-led company clocked a net profit of $248.3 million (R1,117 crore) in 2010 against $206.8 million (R1,034 crore) in the previous year.
Speaking to reporters in India on a conference call from London, Essar Energy vice-chairman Prashant Ruia said the company earned a gross refining margin of $6.6 (the price for turning every barrel of crude oil into petroleum products) in 2010, compared to a gross refining margin of $4.2 in the year-ago. Revenues were up 42% at $10.0 billion (R45,022 crore).
“This is a strong financial result driven by record refinery throughput of 14.7 million tonnes per annum, a pleasing uplift of over 50% in current price gross refinery margins and high availability at our power plants,” said Naresh Nayyar, CEO, Essar Energy.
The company expects to sign the deal to acquire Royal Dutch Shell’s Stanlow refinery in England for $350 million in the next 10 days, Ruia said. Stanlow is UK’s second-biggest refinery and Essar had announced the acquisition on February 18.