Essar Oil UK reports $244 million profit

MUMBAI: Essar Oil (UK), which owns and operates the Stanlow Refinery in UK, reported net profit of $ 244 million in the year ended March, as against $ 70 million a year ago, the company said Monday.

Gross revenues for the financial year was $4,992 million, down 34% year-on-year as crude oil price fell 44% on an average in the same period.

“Looking forward, our ongoing margin improvement initiatives, major capex investment project and ambitious plans for downstream integration through the UK retail sector will deliver a truly sustainable and successful future for us,” said Essar Oil UK Executive Chairman, Naresh Nayyar.

Billionaire brothers Shashi Ruia and Ravi Ruia-led Essar Group acquired the refinery from Royal Dutch Shell in July 2011 and has been able to turn around its performance and capture 16% of the UK's road transport fuel demand. Essar Oil UK, which recently forayed into fuel retail market in UK, has seven operating outlets and plans to expand it to 400 sites over the next three years.

The company also plans to invest $137 million in a project named ‘Tiger Cub’which will work on reduction in crude costs and improved yields across the product slate.

The company declined to comment on Essar Oil talks with Russian energy major OAO Rosneft for a stake sale.