Essar Energy reports 97% jump in revenues for first half of current fiscal

Essar Energy reports 97% jump in revenues for first half of current fiscalLondon 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.

Operating profit jumped a whopping 193 per cent to $311.1 million in six months under review, from $107.7 million in January to June period of last year.

After acquiring the refinery, Essar Energy implemented a number of programmes to optimize operations at the refinery. For example, it used natural gas to drag down costs, and also increased margins by hiking the crude basket.

Naresh Nayyar, chief executive of Essar Energy, said, "These projects, along with a series of other initiatives, helped us in posting a GRM of $8 per barrel as against $3 per barrel in the first eight months of the acquisition."

GRM (Gross refining margins) from the Stanlow refinery averaged at $8.03 a barrel in the April-September period, including $10 a barrel in September alone.

Nayyar added that the company would continue to receive considerable additional margin enhancements from numerous further projects that are under way at Stanlow.