Essar Oil has reported a net profit of Rs.200 crore for the fourth quarter ended March 31, 2013, against a net loss of Rs.608 crore in the same period in the previous year. Gross revenue stood at Rs.25,757 crore against Rs.19,160 crore, up 34 per cent.

Gross refining margin

The current price gross refining margin of $9.06/bbl for the fourth quarter was almost double that of $4.60/bbl reported in the year-ago period.

For the year ended March 31, 2013, the company reported a net loss of Rs.1,180 crore as compared to a net loss of Rs.1,285 crore in the previous financial year. Gross revenue was up 53 per cent at Rs.96,797 crore against Rs.63,340 crore. The current price gross refining margin for the year was $7.96/bbl against $4.23 per barrel.

“We had an eventful year. Our Vadinar Refinery, at 20 million metric tonnes per annum capacity and 11.8 complexity is India’s second largest single site refinery and among the most complex globally, set up at a competitive capex of about Rs.24,000 crore, whose replacement cost today is between 1.75 times and 2 times that figure,” L. K. Gupta, Managing Director and CEO, Essar Oil, told reporters here on Friday.

“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 dollarising our debt, which will also lower our interest cost, and, in turn, improve our free cash flows significantly,” Suresh Jain, CFO, said.

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