Essar Energy Plc, the London-listed oil & gas arm of privately owned Indian conglomerate Essar Group, on Monday reported an impressive fall in its losses.
The London-listed company announced that its pre-tax loss fell to $163.2 million (nearly Rs 900cr) in the twelve months ended March 31, 2013, from a huge pre-tax loss of $1.15 billion in the fifteen months ended March 31, 2012.
It is worth-mentioning here that Essar Energy has moved its year-end from December to March, making the preceding comparative period a fifteen month one.
Leading energy giant, Essar Energy has announced better than expected for the financial year 2012-2013 mainly due to increased capacity at its oil refineries in India.
The company said that its pre-tax losses fell to $163 million during the financial year till March, 2013 compared to $1.14 billion during the 15 months to March 2012. The company said that its earnings before interest, tax, depreciation and amortisation (Ebitda) rose to $1.33b billion, which is highest than analysts' expectations of $1.16 billion for the year.
Mumbai, June 24 : Essar Energy Monday said its loss before tax declined to $163.2 million in the financial year ended March 31, 2013 as compared to a cumulative loss of $1.14 billion in the previous five quarters.
The company's revenue increased by 24 percent to $27.3 billion in the financial year 2012-13, largely due to higher refining volumes at its plant at Vadinar in India and Stanlow in Britain.
London Stock Exchange-listed energy giant Essar Energy has reported remarkably strong jump in revenues and operating profit for the six-month period ended September 30.
In the April-September period, Essar Energy's revenues jumped 97 per cent from the previous eight months to settle at $12.84 billion, thanks to its acquisition of Shell's Stanlow refinery. Essar Energy had acquired Stanlow refinery in July last year for $350 million.
Essar Energy, which is promoted by Ruia brothers Ravi Ruia and Shashi Ruia, has announced a pre-tax loss of $1.15 billion during the 15 months till March 2012.
The company has moved from accounting period till the month of December to the April-March accounting period and has thus reported the results for a period of 15 months. London-listed Essar blamed the negative ruling by the Supreme Court in a tax case for the pre-taxation loss during the period.
Essar Energy has said that its core earnings fell by 10 per cent comaprd to the same period previous year.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) for the calendar year 2011 was at $624.8 million compared to $696.5 million in 2010. The figure is worse than market expectations.
Essar Energy has entered into an association with Shell’s refinery. It has been decided that Essar Energy will buy Shell’s refinery at Stanlow, on the south bank of the Manchester Ship Canal near Ellesmere Port in Cheshire.
But in case the energy company decided to back out of the acquisition, it will be liable to pay a break fee of $50 m and if Essar proceed with the buying but Shell decided not to proceed with the offer, it will be liable to pay $10m fee. Shell will be given three days time to decide whether to accept the proposal or reject it.
Navbharat Power which is being set up in Dhenkanal in Orissa is being purchased by Essar Power. The UK listed, Essar Energy has announced the intentions of its subsidiary towards the 2250 MW coal fuelled power plant. EPL will put their money into 76% of the current equity and the rest is expected to be bought as certain project targets are accomplished.
A joint venture between Malaxmi Energy ventures and Nava Bharat Ventures, Navbharat power has been granted all the major clearances and even the coal linkages are in place, with the land acquisition process currently in progress.
Indian conglomerate, Essar Energy failed to raise the expected amount from the London Stock Exchange (LSE).
It had expected to raise $2.5 billion from the capital markets, but fell short by $550 million. The reason for this was the falling markets and finally the company had to give up.
Essar Energy is into the business of oil and gas. The final price of its shares was 420p. This is less than 450-550 p range that was given by the company.
This was supposed to be the biggest listing that the stock exchange has seen in the last few years.
- Brazilian President Says Growth in the U.S. Could Result in an Improvement of Brazilian Economy
- Anonymous Whistleblower to get $30 Million from SEC
- Siemens Plans to Acquire Dresser-Rand for $6 billion Says Sources
- OSI Group to Cut 340 Jobs in China in Relation to Food Safety Scandal
- PARK(ing) Day Celebration Turns Parking Spots into Temporary Parks