Essar Energy reported a 49 per cent rise in half year EBITDA (earnings before interest, tax, depreciation and amortisation) to $477.9 million as refinery and marketing earnings soared by 73 per cent.

Gross refining margins rose to $8.3 a barrel from $6 as the Japanese earthquake and West Asia conflict hit supplies.

Essar said it expected strong demand in China and India to continue offsetting weakness in Europe, keeping GRM at similar levels in the second half of 2011.

European margins have been under pressure because of higher Brent prices, but Mr Nayyar said that a price correction and structural changes would result in a return to better refining margins in Europe.

The company is currently in the midst of a 100-day plan to review its Stanlow business in the UK to improve operational efficiency.

“We do see further opportunities for improvement,” he said.

Also on Monday, Essar confirmed that the payment channel with Iran was open, and it had tied up all crude requirements for September and October.

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