Essar Oil and Gas reports 273% growth in PAT for Q3

Employees walk past an Essar Group logo outside their headquarters in Mumbai.

Essar Oil and Gas Exploration and Production Ltd (EOGEPL) on February 13 said the company’s profit after tax (PAT) grew 273 percent in the quarter ended December 2022. Revenue was up by 54 percent, the firm’s highest ever, it said in a release.

Revenue stood at Rs 219 crore in the December 2022 quarter, and earnings before interest, depreciation, tax and ammortisation or Ebitda doubled on a year-on-year basis to Rs 171 crore. Profit for the quarter under review, the company said, was at Rs 97 crore, up 273 percent. Profit for the nine-month period was at Rs 284 crore, against a loss of Rs 11 crore reported for the corresponding period a year ago. The company attributed the improvement in its Ebitda margins to a reduction in operating cost and internal consumption in the nine-month period.

Pankaj Kalra, chief executive officer of the company added that the focus will continue on further reduction in internal consumption. “The company continues to focus on key priorities of field upgradation and further reduction in internal consumption which will be acting as a holistic rationalisation of the cost while also adding to the company's top line,” he said. Internal consumption refers to the captive requirements of the company’s coal bed methane business itself.