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Essar Oil spurts to 52-week high on turnaround Q3 results

Capital Market/ 10:40 , Jan 18, 2013

Essar Oil advanced 3.97% to Rs 79.90 at 10:41 IST on BSE, with the stock extending recent gain triggered after the company reported turnaround Q3 results on Tuesday, 15 January 2013.

Meanwhile, the BSE Sensex was up 118.31 points or 0.59% at 20,082.34

On BSE, 14.03 lakh shares were traded in the counter as against average daily volume of 7.32 lakh shares in the past one quarter.

The stock hit a 52-week high of Rs 80.85 in intraday trade today, 18 January 2013. The stock hit a low of Rs 77.20 so far during the day. The stock had hit a 52-week low of Rs 44.80 on 18 January 2012.

The stock had outperformed the market over the past one month till 17 January 2013, rising 13.1% compared with the Sensex's 3.74% rise. The scrip had also outperformed the market in past one quarter, rising 19.24% as against Sensex's 7.27% surge.

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

Essar Oil rose 9.34% in three trading days from a recent low of Rs 72.80 on 15 January 2013 triggered after the company after trading hours on Tuesday, 15 January 2013 reported turnaround Q3 results.

Essar Oil reported net profit of Rs 32 crore for Q3 December 2012, as against net loss of Rs 362 crore in Q3 December 2011. Essar Oil's gross revenue jumped 86% to Rs 25909 crore in Q3 December 2012 over Q3 December 2011. Earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 739% to Rs 1242 crore in Q3 December 2012 over Q3 December 2011. Crude throughput jumped 83% to 5.14 MMT in Q3 December 2012 over Q3 December 2011.

The company said its Current Price Gross Refining Margin (GRM) surged to $9.75 per barrel in Q3 December 2012 from $2.82 per barrel in Q3 December 2011, reflecting the higher complexity benefits post completion of expansion and optimization projects. Essar Oil said that the refinery is now functioning at over its nameplate capacity of 20 MMTPA with all units stabilized, Essar Oil said in a statement.

Talking on the results, Mr. LK Gupta, Managing Director and CEO, Essar Oil said: Our Vadinar Refinery has demonstrated excellent operating performance during the quarter post completion of its expansion and optimization projects. With the differential of Heavy and Ultra Heavy crude price widening over the lighter variety, complex refineries like us, who on one hand are able to process lower price Ultra Heavy and Heavy Crude and yet produce high value products, are realizing the gains of higher complexity. Going forward, we will continue to optimize our crude diet and product slate further to improve our earnings, creating greater stakeholder value.

Mr. Suresh Jain, CFO, Essar Oil said: With Current Price GRM continuing to remain firm, the company has witnessed major jump in its overall earnings performance in the third quarter. Our EBIDTA and PAT would have been higher by Rs 260 crore in this quarter if not for the foreign exchange gain accounted in the previous quarter which showed up as lower sales realization during the quarter. We are clearly focused on creating shareholder value now that the sales tax matter is behind us and no major capex plan is on the agenda.

At Essar Oil's flagship Raniganj coal bed methane (CBM) block, current gas production is around 55,000 standard cubic metres per day (scm/d), against 30,000 scmd a year ago, the company said. The company has completed drilling 120 wells. Environment Clearance III approvals for 618 wells is in progress, Essar Oil said.

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. Essar Oil owns India's second largest single site refinery having a capacity of 20 MMTPA and complexity of 11.8, which is amongst the highest globally. It has a portfolio of onshore and offshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves & resources. There are more than 1,600 Essar-branded oil retail outlets in various parts of India.

 



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