Essar Oil (UK) posts USD 169 mn profit for H1 FY17

Essar Oil (UK) Ltd, which owns and operates UK's Stanlow Refinery, today reported its highest ever half-year net profit at USD 169 million on the back of record margins and operational efficiencies.
Net profit of USD 169 million (Rs 1,082.61 crore) in April-September was 231 per cent higher than USD 51 million in the same period a year ago, CEO S Thangapandian said from London.
"We had a record half-year EBITDA and net profit as the market has been good and units have been run very very efficiently," he said.
EBITDA or pre-tax profit more than doubled to USD 264 million.

"A strong operational performance, supported by product cracks has enabled us to post record figures for a half year period and again improve our delta over the benchmark margin," he said.
The company earned a record USD 11 on turning every barrel of crude oil into fuel as compared to a current price gross refining margin of USD 7.6 per barrel in H1 FY2017.

He said innovations were made to increase high-value transport fuel throughput. Jet fuel production has been increased to 135-140 kilo tonnes per month from 120 KT a month previously.
Essar, he said, will complete the USD 250 million investment in the expansion of the refining capacity by the first quarter of next year.

The investment in the revamping of certain units of the refinery would help cut down on crude oil processing cost, improve product slate and lead to marginal increase in capacity.
Refinery capacity would increase from 68 million barrels to 75 million barrels by March 2018, he said.
The firm, controlled by Ruia-family of Mumbai that sold Essar Oil to Russia's Rosneft for USD 12.9 billion, has 46 petrol pumps in the UK currently and is targeting 400 in five years, he said.
The company has also entered into the direct aviation fuel supply market, selling the fuel produced at Stanlow to major airlines such as Emirates, Etihad, Jet2.com and Oman Air.

He said the company leased a storage in Rotterdam, together with blending and jetty infrastructure, in order to cater to gasoline export markets directly.
Essar has invested over USD 800 million since acquiring Stanlow in July 2011.