Essar Oil has announced its financial report for the year and has reported an impressive net profit. This has been achieved by the company in its second year of operations and it is now focusing on some of its expansion plans.

The firm is planning to expand the capacity of its Vadinar refinery to 18 million tonnes. The press statement suggests that Essar Oil has managed to receive a net profit of Rs 29 crore in 2009-10 fiscal years while there was a massive net loss of Rs 514 crore in the previous year.

The company has a production capacity of 10.5 million- tonne in its Gujarat refinery. The company has earned to $7.69 gross refining margin (GRM) in the 11-month operation in 2008-09 fiscal.

However, the Essar Oil's parent firm Essar Energy is planning to list itself on the London Stock Exchange soon. It has decided to raise $2.5 billion which is about Rs 11,250 crore through an initial public offer for this purpose. The parent company holds over 88% stakes in Essar Oil.