Essar Oil has posted a net loss of Rs 166 crore for the quarter ended September 30 against a profit of Rs 130 crore in the same period last year. The setback this quarter was largely due to a provision of Rs 407 crore for foreign exchange liabilities arising from the sharp depreciation of the rupee against the dollar.
Revenue for the quarter was up 11 per cent to Rs 13,805 crore (Rs 12,415 crore). The gross refining margin was also higher at $7.22/barrel ($6.49/bbl).
Mr Naresh Nayyar, Managing Director, said the company was on the threshold of achieving a quantum jump in its GRM with the Vadinar refinery expansion. Ramp up of all new expansion units with increased refinery throughput of 18 mt will kick off in the first quarter of 2012.
Essar Oil has 1,388 operational retail outlets with 252 under construction. The company is focusing on cities which have the potential to register high growth in petrol. This is thanks to the fact that the fuel has been freed of price control which gives Essar a level playing field vis-à-vis the public sector oil companies.
Plans are also underway to increase the number of auto LPG and CNG pumps across its retail network through tie-ups with local gas marketers such as Aegis Logistics, Sabarmati Gas, GAIL (India), Adani Gas & Gujarat State Petroleum Corporation. The Essar Oil scrip was down 3.57 per cent at Rs 83.75 on Monday.