The Ruias-promoted Essar Oil posted a net profit of Rs 660 crore for the fourth quarter ended March 31, 2009, against a net loss of Rs 8 crore during the same quarter in 2008.
The company’s profit surged after its refinery at Vadinar in Jamnagar began operating at full capacity from May 2008.
“We commissioned our refinery last May. This helped our sales. Also, oil prices were high, which helped in boosting the profit,” said Naresh Nayyar, CEO, Essar Oil.
Total income during the quarter increased by Rs 6,832 crore from Rs 49 crore in the corresponding period last year.
For the fiscal year comprising 11 months, the company reported a standalone net loss of Rs 514 crore, as compared with a net loss of Rs 41 crore in the year 2008.
The gross refining margin for the quarter stood at $10.92 per barrel. The crude processed during the quarter was 3.31 million tonnes, the company said.
The company has decided to seek its shareholders’ approval for issue of further equity shares and/or convertible debentures by way of private placement in domestic or international market up to $2 billion.
Meanwhile, Essar Exploration & Production-India Director and CEO S R Agrawal said that Essar Oil’s investment may go up to $70 million in exploration and production (E&P) this year if a long-pending Production Sharing Contract (PSC) with the government for the Ratna and R-Series fields is concluded early.
“Our E&P capex for FY10 is $50 million if (signing of contract for) Ratna happens. For our CBM block in Raniganj, it is $20 million,” Agrawal told reporters here.
The company said that its Raniganj coal bed methane (CBM) block has been estimated to have high prospects of recoverable gas reserves.