OREANDA-NEWS. Q3FY14 highlights

EOL's premium over benchmark IEA margins for Q3FY14 reached a high of USD 9.33/bbl. However, Q3FY14 current price gross refining margin (CP GRM) at USD 7.93/bbl vs USD 9.75/bbl in Q3FY13 on back of reduction of USD 2.16 in the benchmark IEA margins.

Gross revenues up 6% to Rs 27,385 crore

Throughput at 4.86 MMT for 85 days, post -7-day planned shutdown in November 2013

EBITDA at Rs 1,202 crore vs Rs 1,241 crore in Q3FY13

PAT up 63% to Rs 52 crore Vs Rs 32 crore in Q3FY13

Essar Energy, the parent company, converted FCCBs worth USD 262 million into equity shares of EOL

Nine months highlights

Gross revenue up 12% to Rs 79,498 crore

Throughput up 3% to 15.18 MMT

Premium over benchmark increased to 8.37/bbl for 9MFY14 from USD 6.87 /bbl in 9MFY13. CP GRM at USD 7.27/bbl Vs USD 7.57/bbl in 9MFY13

EBIDTA up 27% at Rs 2,650 crore vs Rs 2,094 crore in Q3FY13

Dollarized - 900 million of its rupee debt through ECBs and swaps

Refinery achieves 2100 LTI free days as on December 31, 2013

Mumbai: Essar Oil, India's second largest private refiner, reported its highest ever GRM premium over the benchmark IEA margin at USD 9.33 /bbl during the quarter ending December 31, 2013.

Essar Oil's current price gross refining margin (CP GRM) for the October-December 2013 quarter (Q3FY14) stood at USD 7.93/ bbl, compared to USD 9.75 per barrel in Q3FY13. Benchmark IEA margin during the quarter was minUSD 1.4/bbl versUSD 0.76 in the corresponding quarter last year.

Gross revenues for Q3FY14 stood at Rs 27,385 crore, up 6% over Rs 25,909 crore in Q3FY13 EBITDA at Rs 1,202 crore was almost at the same level compared to Rs 1,241 crore in Q3FY13. Profit after tax for the quarter was up 63% to Rs 52 crore against Rs 32 crore in the same period last year.

The Vadinar refinery, at 20MMTPA 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 4.86MMT of crude, which was lower than 5.14MMT in the corresponding period last year, due to a planned -7-day shutdown in November 2013.

Taking advantage of the increased spread between light and heavy crude, Vadinar refinery processed 98% of heavy and ultra heavy crude in its crude diet, which is the highest ever. During the quarter, Arab heavy and light differential rose 22% sequentially. Despite processing such a high proportion of heavy and ultra heavy crude, production of valuable middle and light distillates stood at 84% of the refinery's product slate.

Nine month performance

For the nine month period ending December 31, 2013, Essar Oil reported strong revenue growth of 12% to Rs 79,498 crore, against Rs 71,040 crore reported during the same year ago period. Throughput during the nine month period was up 3% to 15.18MMT.

EBITDA for the nine-month period ending December 31, 2013 jumped 27% to Rs 2650 crore from Rs 2,094 crore in 9MFY13. PAT was negative Rs 882 crore against negative Rs 1,381 crore in 9MFY13.

Talking on the results, Mr LK Gupta, Managing Director and CEO, Essar Oil, said: "We had an excellent quarter during which we demonstrated further improvement in all our operational areas, from refinery to marketing to finance. In spite of benchmark margins continuing to languish due to lower gasoline and fuel oil cracks, Essar Oil has delivered very good margins. Our premium over the benchmark IEA margins at USD 9.33/bbl is at an all time high, demonstrating benefits of higher complexity."

Mr. Suresh Jain, CFO, Essar Oil said, "We have witnessed a stable quarter both in terms of oil prices and foreign exchange. In spite of a planned shutdown of about seven days, we improved our topline and bottomline, demonstrating all round operational excellence. We are progressing well on dollarization of our rupee debt to reduce our interest cost, which has already begun to show a declining trend, and have dollarized - USD 900 million worth of rupee debt through ECBs and swaps."