Essar Energy refining margins rise on India capacity addition

Mon Feb 11, 2013 2:19pm IST

Workers, framed between insulated pipes, push a trolley at the Vadinar refinery, operated by Essar Oil Ltd., (EOL) in Gujarat June 5, 2012. REUTERS/Amit Dave/Files

Workers, framed between insulated pipes, push a trolley at the Vadinar refinery, operated by Essar Oil Ltd., (EOL) in Gujarat June 5, 2012.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

REUTERS - Essar EnergyESSR.L said an expansion in refining capacity and the ability to better process lower-cost heavy crude oils helped firm up refining margins in the third quarter.

Essar Oil, India's second largest private refiner, said current price gross refining margin rose to $9.75 per barrel at its Vadinar refinery in Gujarat, up from $2.82 per barrel last year.

Refining margin at its Stanlow refinery in the United Kingdom rose to $5.59 per barrel from $2.45 a barrel a year earlier.

The company's oil refining unit, Essar Oil (ESRO.NS), said last month that EBITDA grew over 8 times to 12.42 billion Indian rupees for the quarter.

Margins at Vadinar rose thanks to an expansion of refining capacity to 405,000 barrels per day from 300,000 barrels, combined with an increased ability to refine heavier low-cost crude oils into high-value products like diesel and jet fuel.

At Stanlow, margins rose as the company improved current-price refining margins by $1 per barrel. Essar is aiming to improve current-price refining margins by $3 a barrel by 2014.

Essar Energy, 77 percent-owned by privately held Indian conglomerate Essar Group, also said it was working towards meeting conditions laid down by the government that would allow it to mine coal from the Mahan coal block in Madhya Pradesh.

The company received forest clearance for the Mahan coal block in October, bringing Essar a step closer to supplying coal to its captive power project in Madhya Pradesh.

Shares in the company were up 2 percent at 144 pence at 1.40 p.m. on the London Stock Exchange on Monday.

(Reporting by Brenton Cordeiro and Abhishek Takle in Bangalore; Editing by Roshni Menon)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Republic Day

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage