Essar Oil drops after 3-day 7.5% rally

Meanwhile, the S&P BSE Sensex was down 140.44 points or 0.7% at 19,981.88.

On BSE, 4.04 lakh shares were traded in the counter as against average daily volume of 11.01 lakh shares in the past one quarter.

The stock hit a high of Rs 87.35 and a low of Rs 83.75 so far during the day. The stock had hit a 52-week high of Rs 96.15 on 4 February 2013. The stock had hit a 52-week low of Rs 46 on 31 August 2012.

The stock had underperformed the market over the past one month till 11 May 2013, surging 7.36% compared with the Sensex's 8.52% rally. The scrip had also underperformed the market in past one quarter, declining 5.23% as against Sensex's 3.4% gain.

The large-cap company has equity capital of Rs 1427.59 crore. Face value per share is Rs 10.

Shares of Essar Oil had rallied 7.55% in three trading sessions to settle at Rs 86.10 on Saturday, 11 May 2013, from a recent low of Rs 80.05 on 8 May 2013. The stock had surged 3.42% to settle at Rs 86.10 on Saturday, 11 May 2013, after the company after market hours on Friday, 10 May 2013, reported turnaround in Q4 results.

Essar Oil reported net profit of Rs 200 crore in Q4 March 2013, as against net loss of Rs 608 crore in Q4 March 2012. Gross revenue rose 34% to Rs 25757 crore in Q4 March 2013 over Q4 March 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) galloped 254% to Rs 1556 crore in Q4 March 2013 over Q4 March 2012.

The company's current price gross refining margin doubled to $9.06 a barrel in Q4 March 2013, from $4.60 a barrel in Q4 March 2012, reflecting the higher complexity benefits post completion of expansion and optimization projects, Essar Oil said in a statement.

Essar Oil reported net loss of Rs 1180 crore in the year ended 31 March 2013 (FY 2013), lower than net loss of Rs 1285 crore in the year ended 31 March 2012 (FY 2012). Gross revenue rose 53% to Rs 96797 crore in FY 2013 over FY 2012. EBITDA was up over three times at Rs 3651 crore in FY 2013, as against Rs 1167 crore in FY 2012. Current price gross refining margin for FY 2013 was at $7.96 a barrel, as against $4.23 a barrel in FY 2012.

Essar Oil has re-entered the bulk diesel market, which recently was deregulated. Essar Oil said that the recent move of government towards full deregulation of auto fuels will create great value for the company's retail business. With three ALPG and CNG pumps opened during the quarter, 30 Essar Oil pumps now offer multi fuel options to customers, the company said in a statement.

Throwing light on its exploration and production activities, Essar Oil said that at the company's flagship Raniganj CBM block, current gas production is around 60,000 standard cubic metres per day (scm/d). The company has completed drilling 148 wells. Environment Clearance III approvals for 618 wells has been received. Production is expected to reach 3 million scm/d by next year, Essar Oil said in a statement.

Essar Oil is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration and production to refining and oil retail.

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