London-listed Essar Energy Plc today said margins at its Stanlow refinery in the UK fell by more than a third due to weak diesel and jet prices.
In its interim management statement for the quarter ended June 30, Essar Energy said Stanlow earned $4.86 on turning every barrel of crude oil into fuel as compared to $7.53 per barrel gross refining margin (GRM).
“Current price GRM was impacted during the quarter by generally lower industry margins, weaker diesel and jet prices relative to gasoline, and higher residues production relating to the stabilisation of the revised refinery configuration following the closure of the lubes plant in February 2013,” the company said.
Work was underway to improve margins at Stanlow, it added.
Also, preparations are at an advanced stage for a planned turnaround at Stanlow in the second half of current fiscal, allowing major maintenance projects to be completed, including a 25 year re-lifting of the residue catalytic cracking unit, the largest in Europe.
However, the company’s Vadinar refinery in Gujarat saw GRM rise to $7.01 per barrel in April-June from $4.69 a year ago.
During the first quarter, the Vadinar refinery achieved a throughput of 5.14 million tonnes compared with 4.48 million tonnes in the same period last year, an increase of 15 per cent.
“This increase followed the completion of the Vadinar refinery optimisation project four months early in June 2012, which lifted capacity to 20 million tonnes per year/4,05,000 barrels per day and brought the refinery’s major capex programme to an end,” it said.
The complexity of the refinery has increased to 11.8, which has helped it process more of heavy and ultra-heavy crudes. Vadinar’s crude mix comprised 92 per cent lower cost heavy and ultra-heavy crudes, compared with 89 per cent in Q1 last fiscal.
At the Stanlow refinery in the UK, throughput during Q1 stood at 2.55 million tonnes, compared with 2.61 million tonnes in the same quarter the previous year.
On power sector, the company said its 8 power plants generated 3,114 million units of electricity, up 60 per cent on 1,945 million units in the same quarter last year.