Essar Energy losses fall to $163 million
The London-listed power, oil and gas arm of privately owned Indian conglomerate Essar Group, Essar Energy Plc, on Monday said its losses-before-tax declined to $163.2 million (or about Rs. 900 crore) in the financial year ended March 31.
The company said it will spend $200 million (Rs. 1,100 crore) to convert two of its gas-based power plants in Gujarat to coal, owing to shortages in domestic supplies.
The company had reported a pre-tax loss of $1.15 billion in the 15 months ended March 31, 2012.
Essar Energy this year moved its year-end to March from December, making the previous comparative period a 15 month one.
Company’s chief executive Naresh Nayyar said earnings before interest, taxation, depreciation and amortisation, on a current price basis, was $1.33 billion (about Rs. 7,315 crore) during the period under review, compared with $484.5 million (Rs. 2,665 crore) in the 15 months ended March 31, 2012.
The rise in earnings was primarily due to improved refining capacity at Vadinar refinery in Gujarat as well as Stanlow refinery in the UK which pushed up margins.
Full-year refining margins rose 79% to $7.96 per barrel.
The company also said it expects another strong year, backed by continued improvement in refining margins and higher demand from its core Indian market.