1. Essar Oil posts Rs 226-cr net on lower forex losses

Essar Oil posts Rs 226-cr net on lower forex losses

Integrated oil and gas company Essar Oil reported a standalone net profit of Rs 226 crore for the second quarter compared...

By: | Mumbai | Published: November 8, 2014 12:05 AM

Integrated oil and gas company Essar Oil reported a standalone net profit of Rs 226 crore for the second quarter compared to a net loss of Rs 71 crore in the year-ago period, aided by lower foreign exchange losses and lower finance costs.
India’s second-largest private refiner saw revenues decline 13% to Rs 22,371 crore from Rs 25,695 crore, mainly due to lower crude oil price during the quarter, even as throughput at 5.04 mmt stood 3% lower y-o-y due to a seven-day planned shutdown and five-day capacity slowdown.
Ebitda (earnings before interest, taxes, depreciation and amortisation), including forex variations, stood at Rs 1,025 crore against Rs 1,033 crore in the year-ago period. Operating profit was aided to an extent by higher current price GRM, which stood at 7.04/bbl against $6.93/bbl in the second quarter of fiscal 2014.
However, the major contributing factor to profit was the sharp decline in forex losses, which came down from Rs 773 crore in Q2FY14 to Rs 289 crore. Also, finance costs were down nearly 27% y-o-y to Rs 556 crore.
Suresh Jain, CFO of Essar Oil, said the financials were impacted on account of a decline in cracks of key products and weakness in oil prices, which were partly offset by operational efficiency and reduction in interest and financial charges due to part dollarisation of debt.
“We expect to complete our balance dollarisation programme by end of FY15 to further reduce our overall cost of debt,”added Jain.
Essar Oil, which has over 1,400 outlets across the nation, said the company has begun retail diesel sales after the government’s deregulation of diesel.
The stock closed the day at Rs 123.15, down 2.03% from its previous close, on the BSE.

Tags: Essar Oil
  1. No Comments.

Go to Top