OREANDA-NEWS. January 21, 2013. Essar Oil, India’s second largest private refiner and part of UK listed Essar Energy plc, today reported Current Price Gross Refining Margin of USD 9.75 per barrel, for the October-December 2012 quarter (Q3FY13), up 350% compared to USD 2.82 per barrel in Q3FY12 reflecting the higher complexity benefits post completion of expansion and optimization projects. The gross revenues for Q3FY13 stood at Rs 25,909 crore, up 86% over Rs 13,897 crore reported in Q3FY12; while EBITDA was up 8.4 times at Rs 1,242 crore compared to Rs 148 crore in Q3 FY12. Profit After Tax for the quarter was at Rs 32 crore versus a loss of Rs 362 crore in the same period last year.

The Vadinar Refinery, at 20 MMTPA capacity and 11.8 complexity, is India’s second largest single site refinery and amongst the most complex globally for a facility of this scale. During the quarter, Vadinar Refinery processed 5.14 MMT of crude, up 83% over Q3FY12 (during the corresponding quarter last year, the refinery had a 22-day shutdown, as a part of a scheduled 35-day planned shutdown for maintenance and synching of new units). The refinery is now functioning at over its nameplate capacity of 20 MMTPA with all units stabilized.

Share of Ultra Heavy Crude in the refinery’s crude diet rose almost three fold to 67% from the corresponding quarter last year and production of valuable Middle and Light distillates improved to 85% of the refinery’s product slate from 69% over the same period last year. Heavy and Ultra Heavy Crude constituted 84% of the refinery’s crude diet during the quarter, against 74% in Q3FY12.

Talking on the results, Mr. LK Gupta, EOL’s Managing Director and CEO said: “Our Vadinar Refinery has demonstrated excellent operating performance during the quarter post completion of its expansion & optimization projects. With the differential of Heavy and Ultra Heavy crude price widening over the lighter variety, complex refineries like us, who on one hand are able to process lower price Ultra Heavy and Heavy Crude and yet produce high value products, are realizing the gains of higher complexity. Going forward, we will continue to optimize our crude diet and product slate further to improve our earnings, creating greater stakeholder value.”

Mr. Suresh Jain, CFO, Essar Oil said, “With CP GRM continuing to remain firm, the company has witnessed major jump in its overall earnings performance in the third quarter. Our EBIDTA and PAT would have been higher by Rs 260 crores in this quarter if not for the foreign exchange gain accounted in the previous quarter which showed up as lower sales realization during the quarter. We are clearly focused on creating shareholder value now that the sales tax matter is behind us and no major capex plan is on the agenda.”