Essar Oil shares rise as co FY15 first quarter net profit Rs 684 cr vs loss a year ago

MUMBAI: Essar Oil shares on Wednesday rose 3% to touch an intra-day high of Rs 123 after the company reported net profit of Rs 684 crore for the first quarter of 2014-15 after share market trading closed Tuesday, as against a loss of Rs 863 crore a year ago.

Essar Oil’s gross revenues in April-June was Rs 27,317 crore, up 11% year-on-year.

Shares of the company closed at Rs 120.05, up 0.67% from the previous close.

“Operationally we continue to do well with the refinery operating at over 100% capacity. Our capability of sourcing, blending, and processing of heavy and ultra heavy crude, coupled with a product mix geared towards light and middle distillates have resulted in healthy margins,” said L.K. Gupta, managing director and chief executive officer.

The company’s current price gross refining margin in the June quarter was $9.04 / barrel as against $7.01/barrel reported a year ago.

“Consistency in operating performance coupled with stable forex and crude prices helped us to sustain our CP GRM and profitability,” said Suresh Jain, chief financial officer.

The company reported a forex loss of Rs 49 crore in the June quarter as against a loss of Rs 913 crore a year ago.

The company is in the process of de-listing from the bourses in India, following the de-listing of its parent company Essar Energy from the London Stock Exchange.