Energy major Essar Oil, riding on higher gross refining margins and forex gains, has reported Rs 200-crore profit for the quarter ended March 31. In the comparable quarter last year, the company had made Rs 515 crore loss.
A gross refining margin (GRM) is the differential between cost of a barrel of crude oil and the price at which its processed output can be sold.
The GRM for Q4FY13 stood at $9.06 a barrel, while in Q4FY12 it was $4.60.
The company has attributed almost doubling of the GRM to expansion and optimisation projects, which were carried out at the Vadinar refinery.
Net sales for the quarter increased by 34 per cent to Rs 23,534 crore, while in the year-ago quarter it was Rs 17,514 crore. The EBITDA for the quarter was up at 254 per cent to Rs 1,556 crore (Rs 439 crore).
On the other hand, for FY13 the company reported Rs 1,180 crore loss, while for FY12 the loss was even higher at Rs 1,285 crore. The company has attributed the loss in FY 13 to the one-time massive loss of Rs 515 crore in Q4FY12.
Net sales for the FY13 were Rs 88,307 crore (Rs 58,248 crore).
Managing Director and CEO L.K. Gupta said the fourth quarter has posted a profit, which also can be attributed to a stable rupee and oil prices.
During the quarter, the Vadinar refinery processed 5.08 million tonnes of crude, which is an increase of 26 per cent over the corresponding quarter last fiscal. The refinery continues to function at its installed capacity of 20 million tonnes a year with all units stabilised, he said.
He added the company plans to refinance about $1.8 billion of its debt in the next three to six months.
The RBI has given approval for refinancing up to $2.27 billion.