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.

The company has switched to financial year till March form December year and thus the previous accounting period includes 15 months. The company had recorded an Ebitda of $484 million during the 15 month period till March,
2012. The company's earnings were also affected by delays in winning consent to produce coal at blocks close to its Mahan power plant in the central Indian state of Madhya Pradesh.

Chief executive Naresh Nayyar said, "We are starting to reap the benefits of new schemes we have implemented in our oil and gas business."

Its oil refineries including Vadinar in the Indian state of Gujarat and Stanlow in Britain recorded improved revenues but its power business reported losses of $28.5 million compared to profits of $144.6 million during the previous year. The company increased its capacity and the range of fuels produced at Vadinar and now accounts for 10 per cent of India's total refining capacity.