Essar Energy optimises performance of existing assets

Essar Energy optimises performance of existing assetsWe commissioned the coal based captive power plant, becoming the only refinery in the continent to have such a facility. Besides meeting the power and steam requirements of the refinery, the power plant is aiding gross margins to the tune of at least $1 billion. – Prashant Ruia, Chairman and Non-Executive Director, Essar GroupEssar Energy is a world-class, low-cost, integrated energy company focused on India and well-positioned to capitalise on India’s rapidly growing energy demand. It has an established track record and $18 billion of assets across the power, and oil and gas industries.Essar Energy’s refining and marketing business primarily consists of the Vadinar refinery, the second-largest private sector refinery in India, the Stanlow refinery in the United Kingdom and a 50 per cent interest in the Kenya Petroleum Refinery Ltd. Essar Energy serves retail customers in India through a modern, countrywide network of 1,600 operational and under construction retail fuel outlets. In the oil and gas sector, the company has 15 blocks and fields in the various stages of exploration and production of oil and gas in India, Indonesia, Madagascar, Nigeria and Vietnam. Total reserves and resources across these blocks are 2,034 million barrels of oil equivalent (mmboe).Power figurePrashant Ruia, the Chairman and Non-Executive Director, was appointed to the Board in April 2010 and appointed Chairman in December 2011. Mr Ruia has been involved with Essar Group’s operations and management since 1985. He is fundamental to its strategy, continued growth and diversification both within India and internationally. He is currently a member of the Audit Committee of the World Steel Association and a member of the Energy Boardroom at the World Economic Forum.Power factsEssar Energy, through its subsidiaries, owns one of India’s largest private power producers with 3,910MW of installed capacity and projects under construction to expand its capacity to 6,700MW. Its Vadinar refinery, located in Gujarat, is India’s second largest private sector oil refinery with throughput capacity of 20 million tonnes per annum or 405,000 barrels per day.Financial highlights

EBITDA Rs. 1,106 crore, from negative Rs. 178 crore in Q1FY13
Current price gross refining margin rose 49 per cent to $7.01 /bbl vs $4.69 /bbl in Q1FY13
Dollarisation of debt program accelerate with $340 million further added through ECBs and swaps; $821 million worth of rupee debt converted till date
Forex fluctuation of Rs. 913 crore largely cash and earnings neutral due to prudent risk management policy
Gross revenues up 12 per cent to Rs. 24,721 crore from Rs. 22,109 crore in Q1FY13
Throughput up 15 per cent to 5.14 million tonnes vs 4.48 million tonnes in Q1FY13
Performance highlights

Essar Oil UK completes lift of giant £23 million pound unit at Stanlow refinery
With two ALPG and CNG pumps opened during the quarter, 32 Essar Oil pumps now offer multi-fuel options to customers
At Essar Oil’s flagship Raniganj CBM block, current gas production is around 100,000 standard cubic metres per day (scm/d). The company has completed drilling 165 wells. Stage III Environment Clearance for 618 wells has been received. Production is expected to reach 3 million scm/d by next year.

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