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Nayara Energy posts record Rs. 3,564 crore profit in Q1

Indian refiners such as Nayara Energy started snapping up Russian oil since March after some western countries and companies shunned purchases from Moscow over its invasion of Ukraine.

Nayara Energy Q1 Results
Net profit of Rs 3,563.7 crore, or Rs 23.91 per share, in April-June compared with a loss of Rs 139.1 crore in the same period a year back. Image: FE

Russian oil major Rosneft-backed Nayara Energy has reported a record quarterly profit in April-June as it made hay on export of fuel made from discounted Russian oil.

Net profit of Rs 3,563.7 crore, or Rs 23.91 per share, in April-June compared with a loss of Rs 139.1 crore in the same period a year back, it said in a late evening stock exchange filing on Friday.

The profit was up from Rs 409.5 crore in the preceding January-March quarter.

Rosneft and Kesani Enterprises Co Ltd, a consortium led by Trafigura Group and Russia’s UCP Investment Group, holds 49.13 per cent stake each in Nayara, which operates a 20 million tonnes a year refinery at Vadinar in Gujarat and over 6,500 petrol pumps in the country.

The profit in the first quarter of current fiscal year that began in April is higher than the Rs 1,029.9 crore earnings in the entire previous fiscal (2021-22).

Indian refiners such as Nayara Energy started snapping up Russian oil since March after some western countries and companies shunned purchases from Moscow over its invasion of Ukraine.

While the state-owned firms such as Indian Oil Corporation (IOC) used such imported oil to boost supplies within the country where fuel prices remained on freeze, private refiners boosted exports to Europe and the US to capture high margins available.

Since the time Russian energy giant Rosneft was sanctioned by the West to punish Russia for its invasion of Ukraine, some top officials of Nayara have left the company. (Nayara has not been sanctioned).

In a separate notice, the firm said Rosneft’s representative Krzysztof Zielicki has resigned from the board and has been replaced by Andrey Bogatenkov. He will represent Rosneft Singapore Pte Ltd, a unit of the Russian firm which holds a stake in Nayara.

Bongatenkov, 42, was vice president – commerce and logistics with PJSC Rosneft Oil Company.

On August 10, Nayara said its chief financial officer Anup Vikal had resigned with effect from August 18.

Prior to that, Jonathan Kollek, a nominee of Kesani Enterprises Co Ltd, resigned from Nayara board and was replaced by Sachin Gupta. Gupta, 48, is currently the CEO of Trafigura India Pvt Ltd.

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