Essar Oil first quarter net profit up 55% at Rs 1,063 cr

Gross Refining Margin rises 22% to $11.05 per barrel

Essar Oil, the oil and gas arm of the Ruias-controlled Essar Group, on Wednesday said it had posted a 55 per cent jump in net profit for the April-June period. It reported net profit of Rs 1,063 crore against Rs 684 crore in the corresponding quarter a year ago.

“We have declared record quarterly results on the back of stellar operating and financial performance. Consistent strong financial performance has improved all financial parameters and ratios in the last two years. We are confident of further reduction in our interest cost through ongoing dollarisation programme,” chief financial officer Suresh Jain said.

The gross refining margin rose 22 per cent to $11.05 per barrel during the three months period against $9.04 per barrel in the same quarter last year. However,  total income dipped by a third to Rs 16,664 crore from Rs 25,087 crore in the same quarter last year. “This dip in revenues was mainly because of lower crude oil prices prevailing in the global market,” the company said.

Gets not for delisting
Essar Oil has received approvals from the National Stock Exchange and BSE to delist its shares, managing director and chief executive L K Gupta said on Wednesday. Delisting the company would give promoter Ruia borthers — Shashikant and Ravikant — greater flexibility and less regulatory scrutiny while selling a stake in the refiner. “The promoters will now have to make announcement and reverse book building start,” Gupta said. The entire process to delist shares may take up to two months.