Essar Energy Plc., the London Stock Exchange-listed India-focussed energy company, has reported 7 per cent drop in current price (CP) earnings before interest, tax, depreciation and amortization (EBITDA) to $543.7 million for the first six months ended September 30, 2013, from $582.6 million in the same period last year.
The company’s pre-tax loss has gone up sharply to $498.8 million, against a loss of $282 million in six months ended September 30, 2012.
The company’s profitability was impacted due to foreign exchange losses of $483 million on account of depreciation of Indian rupee from Rs.54 to Rs.63 to a dollar. Much of the forex losses are unrealised and the company said it would recover the losses through product sales.
The impact of crude oil price volatility on the inventory was to the tune of $83 million, the company added.
“The global refining market was very tough during the period, with global industry margins falling sharply in both Asia and Europe compared with a year earlier. Essar Energy’s refineries at Vadinar and Stanlow significantly outperformed the market, but were, nevertheless, impacted,” Essar Energy said in a statement.
Current price EBITDA at Vadinar rose to $339.4 million for the first half from $311.1 million in the same period last year.
The gross refinery margins at the Vadinar facility rose 9 per cent to $6.97 per barrel against $6.41 per barrel in the first half of last year.
Current price EBITDA at Stanlow fell to $65.2 million from $197.2 million a year earlier. Gross refinery margins fell to $5.03 per barrel, against $8.03/barrel in the first half.
In the power business, EBITDA rose 59 per cent to $147 million from $93 million in the first half of the previous year. The company’s total net debt fell 2.6 per cent to $6.56 billion, helped by the depreciation of the rupee against the dollar, the company said.
