Oil refining major Essar Oil on Tuesday announced it had posted a net loss of Rs 1,400 crore for the quarter ending June 30.
In the year ago quarter, the company has posted a profit of Rs 469 crore.
For the current quarter, the loss has been due to lower EBITDA, high interest cost and depreciation.
The company clocked 33 per cent growth in net sales at Rs 19,993 crore (Rs 14,946 crore) in the current quarter, mainly due to higher product price realisation on account of increased domestic sales and rupee depreciation.The gross refining margin (GRM) for the quarter was $4.69 per barrel, compared with $4.20 per barrel in the year ago quarter.
The first phase optimisation project of the Vadinar refinery was completed in June. Post-completion, the refinery has achieved a total refining capacity of 20 million tonnes.
In a media statement, the company said that the full benefit of the higher complexity refinery would be felt from next quarter onwards.
The GRMs are expected to be $7-8 higher than the benchmark IEA margins from current quarter onwards. At the close of trading hours on the BSE, the stock traded at Rs 53.85 — an increase of 0.09 per cent over the previous close.
rahul.wadke@thehindu.co.in