May 12, 2012, 05.12 PM IST | Source: Moneycontrol.com

Essar Oil pins hope on FY13 after Rs 515-cr loss in Q4

Essar OIl has posted a net loss of Rs 515 crore for the March quarter of financial year 2011-12 when compared with a profit of Rs 321 crore which the company posted in the year-ago period. Gross revenues for the period grew 29% to Rs 19,160 crore, Year-on-Year.

Moneycontrol Bureau

Essar Oil Ltd (EOL) posted a net loss of Rs 515 crore for the March quarter of financial year 2011-12  as compared to the profit of Rs 321 crore posted in the year-ago period. Gross revenues for the period grew 29% year-on-year to Rs 19,160 crore.

The company said that it has already provided Rs 4,015 crore as an exceptional item in its books as reversal of sales tax incentive income in Q3-FY12. Considering the net accretion of Rs 53 crore in Q4-FY12 on account of defeasement, the net reversal for the year is Rs 3.962 crore. The gross refinery margin (GRM) in EOL's refining business in Q4 stood at USD 4.60 per barrel, compared to USD 5.29 per barrel year-on-year

LK Gupta, managing director and CEO, EOL. said: "We have completed a very challenging yet satisfying year at Essar Oil. During the year, we completed our refinery expansion programme and this has made us the second largest single-location refinery in India and one of the most complex refineries in the world. It has opened up new markets for our products and provides flexibility for sourcing of crudes."

"With our optimisation programme now nearing completion, we have reached the closure of our major capex initiatives. With this, we have significantly moved up in the refining value chain and are now fully focused on delivering the value of investments to the stakeholders."

The company has said that with its refinery expansion project to increase capacity to 18 MMTPA (million metric tonnes per annum) and complexity to 11.8 completed, would lead to aa significant upside in refinery value chain.

The optimisation project to further increase capacity to 20 MMTPA is on track and completion is expected by September 2012.  FCCBs( foreign currency convertible bonds) of USD 262 million issued to Essar Energy were made compulsorily convertible. This boost to net worth was impacted due to one time sale tax reversal. 

A writ petition seeking direction on the repayment installments and interest in relation to its sales tax deferral liability was admitted by the Gujarat High Court. The CDR exit proposal is expected to be approved shortly.

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