Essar Oil gains after reporting stellar Q1 results

Essar Oil rose 0.47% to Rs 192.95 at 10:40 IST on BSE after net profit rose 54% to Rs 1063 crore on 25% decline in gross revenue to Rs 20572 crore in Q1 June 2015 over Q1 June 2014.

The result was announced after market hours yesterday, 29 July 2015.

Meanwhile, the S&P BSE Sensex was up 214.79 points or 0.78% at 27,778.22.

On BSE, so far 2.21 lakh shares were traded in the counter as against average daily volume of 6.58 lakh shares in the past one quarter.

The stock hit a high of Rs 199.15 and a low of Rs 192.05 so far during the day. The stock had hit a 52-week high of Rs 200.30 on 13 July 2015. The stock had hit a 52-week low of Rs 91.85 on 27 November 2014.

The stock had outperformed the market over the past one month till 29 July 2015, rising 39.62% compared with Sensex's 0.3% decline. The scrip had also outperformed the market in past one quarter, gaining 79.74% as against Sensex's 1.24% gain.

The large-cap company has equity capital of Rs 1511.44 crore. Face value per share is Rs 10.

Essar Oil attributed the decline in its top line during Q1 June 2015 to lower crude oil prices prevailing in the global market.

Essar Oil's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 28% to Rs 2060 crore in Q1 June 2015 over Q1 June 2014.

The company registered a growth of 22% in current price gross refining margin (CP GRM) at $11.05 per barrel in Q1 June 2015, as against $9.04 per barrel in Q1 June 2014.

Essar Oil said that it has registered its highest ever profit after tax (PAT), EBITDA and CP GRM in Q1 June 2015.

During Q1 June 2015, the Vadinar Refinery continued to operate above its rated capacity, registering a throughput of 5.17 million tonnes. With its increased complexity, post the expansion and optimisation projects that were completed in 2012, the refinery continues to process a high volume of heavy and ultra-heavy crudes that enable better refining margins. In terms of finished products, the refinery continues to produce a high proportion of light and middle distillates that also have a positive impact on margin.

Commenting on the company's Q1 performance, LK Gupta, Managing Director & CEO of Essar Oil said that for the 12th consecutive quarter the company's refinery has continued with its trend of registering steady and strong performance by operating beyond its rated capacity. The planned 30-day refinery maintenance shutdown between September and October this year will help the company complete its Diesel Maximisation Project, which will enable it to convert lower margin intermediates like VGO to higher margin distillates like diesel, Gupta said. This will further improve the company's refining margins, he added. Essar Oil's retail expansion is on track and it is witnessing encouraging response and improvement in sales, Gupta said.

Suresh Jain, CFO of Essar Oil said that the company has 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, Jain said. The company is confident of further reduction in its interest cost through the ongoing dollarisation programme, Jain added.

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

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