Essar Oil, promoted by the billionaire Ruia brothers, has reported a seven-fold jump in its third quarter net profit at Rs 364 crore on account of record refining margins.
The company had reported a net profit stood at Rs 52 crore in the corresponding period last year.
“The decline in throughput was due to the planned shutdown of 30 days (completed in 28 days from September 18, 2015 to October 15, 2015),” the statement said. Lalit Kumar Gupta, Managing Director and Chief Executive
Officer, said: “Essar Oil has delivered excellent performance despite very challenging domestic and global macro-economic environment.”
Essar’s 20 million tonnes per annum Vadinar refinery in Gujarat processed 4.24 million tonnes of crude oil in the quarter, down 18 per cent from 5.19 million tonnes.
The safe and successful completion of the turnaround shutdown of the refinery before schedule along with completion of the Diesel Maximisation Project will help the company sustain performance in future, he said.
Suresh Jain, Chief Financial Officer, said profitability is further expected to improve pursuant to overall improvement in crude mix and product slate post shut down.
Essar Oil earned $13.25 on turning every barrel of crude oil into fuel in the third quarter as compared to a gross refining margin of $7 per barrel a year ago. However, total revenue declined 37 per cent to Rs 13,947 crore as oil prices slumped to a 12-year low.