Rajnath Singh refuses to pinpoint blame about 'rumours' on son

Rajnath Singh refuses to pinpoint blame about 'rumours' on son

There has been some reports of Rajnath Singh's son being ticked off by PM Narendra Modi...
New Flight MH 370 theory

New Flight MH 370 theory

Malaysia Airlines Flight MH370 may have turned south earlier than previously thought

Essar Oil Q3 profit surges 63% as interest costs drop

Feb 11 2014, 04:32 IST
Comments 0
SummaryThis was driven mainly by an 8% reduction in interest costs to R812 crore in Q3FY14.

Despite a fall in the gross refining margin and a refinery shutdown for seven days in December, Essar Oil, the downstream oil and gas arm of the Essar Group, posted a 63% jump in net profit for the quarter ended December 2013 on a year-on-year basis.

This was driven mainly by an 8% reduction in interest costs to R812 crore in Q3FY14. Also, an 11% increase in the company's other income due to an increased interest income also led to the gain at the profit after tax (PAT) level.

“On a net basis, including reduced interest outgo and increase in interest income, there is a saving of 16% in interest cost as we have already started getting benefit of the dollarisation of the debt,” said Suresh Jain,CFO, Essar Oil.

He said for the first nine months, the company converted $900 m of its rupee debt into dollars and the focus now is to convert the remaining $1.3 bn.

For the third quarter, Essar Oil's Ebitda stayed almost flat at R1,202 crore as the company faced a seven-day shutdown in November. This reduced the quarterly throughput of the 20-mtpa Vadinar refinery from 5.14 million metric tonne (mmt) in Q3FY13 to 4.86 mmt.

It also witnessed a 19% year-on-year fall in its GRM to $7.93 per barrel, which hit the company's operational performance.

“If we reduce the number of days of shutdown, we have still crossed 100% capacity utilisation in the third quarter. But we have been able to increase our GRMs compared with the benchmark at a time when the benchmark margins have itself languished,” said LK Gupta, MD and CEO, Essar Oil.

Ads by Google

More from Corporates & Markets

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...