Essar Oil Limited: Results for the quarter ended June 30, 2011 (Unaudited)

July 11, 2011

Key Highlights

Overall

• Essar Oil Limited (EOL) reports strong financial performance, with quarterly gross revenues increasing by 37% to Rs 16,478 crore from Rs 12,048 crore in Q1 FY 2010-11.
• Quarterly EBITDA was at Rs 913 crore, a growth of 124% from Rs 407 crore in the corresponding quarter of last fiscal year
• Quarterly PAT was at Rs 469 crore, compared to a loss of Rs 70 crore in Q1 FY 2010-11.
• Quarterly Current Price GRM (CP GRM) registered a 27% growth to US$ 7.38 /bbl compared to $ 5.79/bbl in Q1 FY 2010-11.

Refining

• Vadinar Refinery achieved quarterly throughput of 3.62 MMT (million metric tonnes), signifying over 135% capacity utilisation
• Phase I expansion project, which will increase the refining capacity from 14 MMTPA to 18 MMTPA and complexity from 6.1 to 11.8, is 92% completed:
- Isomerisation Unit and many other units achieved mechanical completion in the quarter
- Rest of the units, excluding DCU, to achieve mechanical completion in Q3 of CY 2011
- Start-up activity of all expansion units to commence in phases during Q3 & Q4 of CY 2011
- 35-day shutdown planned, starting 18 September 2011, for tie-in of new units
- Revamp of CDU, FCCU & SRU to be completed during this shutdown
• Optimisation project to enhance refinery capacity to 20 MMTPA on track; 56% already completed and mechanical completion by September 2012
• Refinery continues to maintain excellent safety track record, with 1,185 Lost Time Incident (LTI) free days as on 30 June 2011

Marketing

• Essar Oil has 1,639 retail outlets, including operational and under construction outlets
• On the back of high crude prices, HSD & MS pricing at outlets maintained higher than PSUs
• Company increasing focus on non-fuel retailing at its outlets
- Four CNG stations commissioned
- Tapping the opportunity of retailing Auto LPG & CNG in Essar Oil outlets through tie-ups with Aegis Logistics, Sabarmati Gas, GAIL India and Adani Gas.
- Formed new non-fuel retail alliances with Kerala Tourism, Rajasthan Tourism, Heritage Foods and United Phosphorus Group

Exploration & Production

• Raniganj CBM to start commercial sales shortly post statutory approval; block generating controlled production of about 33,000 scmd
• All supporting infrastructure for delivery of gas to customers completed
• Tie-ups with local customers at Durgapur Industrial Estate

Essar Group