Essar's UK refinery turns a corner

The factory recorded a net profit of $70 mn versus a loss of $121 mn in FY14

Essar group’s Stanlow refinery in UK has turned the corner as it reported its highest ever profit after tax (PAT) of $70 million for the fiscal 2015 as compared to a loss of $121 million in the fiscal 2014. The earnings before interest, tax, depreciation and amortization (EBITDA) was $177 million as compared to a loss of $113 million in FY14, said a company statement.

During the year, Stanlow refinery, which meets about 15% of UK’s transport fuel demand, processed 8.54 MMT of crude, an 18 per cent increase on the previous year. Gross revenues for the fiscal 2015 stood at $7,615 million, an 11% drop to $8,569 million reported in FY14, largely due to the lower crude oil price which fell 21% year on year average.

The statement said Essar Oil UK reported its highest ever annual Current Price Gross Refining Margin (CP GRM) at $7.80/bbl, a 91% increase to the $4.08/bbl reported in FY14, primarily due to refinery reconfiguration and improved benchmark margins.

“This was a significantly better year for us. It is heartening to note that the impact of several initiatives taken at the site in recent years is now being reflected in the operational and financial performance of the company. I am confident the business will continue to improve its performance,” said Essar Oil UK Chairman, Naresh Nayyar.