OREANDA-NEWS. Essar Oil, India's second largest private refiner and part of UK-listed Essar Energy plc, reported strong results for the quarter and the year ended March 31, 2013.

Gross revenues for the January-March 2013 quarter (Q4FY13) stood at Rs 25,757 crore, up 34% over Rs 19,160 crore reported in Q4FY12; EBITDA was up 254% at Rs 1,556 crore compared to Rs 439 crore in Q4 FY12. Profit After Tax for the quarter was at Rs 200 crore versus a loss of Rs 608 crore in the same period last year. Current Price Gross Refining Margin of USD 9.06/bbl for Q4FY13 was almost double of USD 4.60/bbl reported in Q4FY12, reflecting the higher complexity benefits post completion of expansion and optimization projects.

During the quarter, Vadinar Refinery processed 5.08 MMT of crude, up 26% over Q4FY12. The refinery continues to function at over its nameplate capacity of 20 MMTPA with all units stabilized.

Share of Ultra Heavy Crude in refinery's crude diet rose to 62% from 24% in the corresponding quarter in FY12. Overall, the refinery processed 88% of heavy and ultra heavy crude in Q4FY13. Production of valuable Middle and Light distillates improved to 84% of the refinery's product slate from 69% over the same period last year.

For the full financial year ended March 31, 2013 (FY13), gross revenue was up 53% at Rs 96,797 crore compared with Rs 63,340 crore in FY12. EBITDA for full year was up over three times at Rs 3651 crore compared to Rs 1,167 crore in FY12. The Current Price Gross Refining Margin for the year was USD 7.96/bbl against USD 4.23 per barrel in FY12. Profit after tax for the year stood at negative Rs 1,180 crore compared to negative 1,285 crore in FY12.

Talking on the results, Mr. L.K. Gupta, Managing Director and CEO, Essar Oil, said: "We had a very eventful year in FY13 during which we have achieved a number of milestones. Our Vadinar Refinery, at 20 MMTPA capacity and 11.8 complexity is India's second largest single site refinery and amongst the most complex globally, set up at a very competitive capex of approx Rs 24,000 crore, whose replacement cost today is between 1.75-2 times that figure. The refinery has demonstrated excellent operating performance with a very strong focus on safety and has consistently outperformed the benchmark IEA margins, as was targeted."

Mr. Suresh Jain, CFO, Essar Oil said, "Benefit of expanded capacity and complexity was available for only three quarters of the year and the performance of the refinery post completion of expansion has been consistent. Our primary focus is now to align our asset liability mismatch by dollarizing our debt, which will also lower our interest cost, and in turn improve our free cash flows significantly."