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Essar Oil UK net profit down by 4pct for FY18

Gasoil News - Published on Fri, 06 Jul 2018

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ETEnergyworld reported that Ruia-owned Essar Oil UK, which operates the 9 million metric tonne per annum (MMTPA) Stanlow refinery, reported a 4 per cent decline in net profit at INR 1,037 crore for the last financial year (2017-18) as compared to INR 1,125 crore in the previous fiscal.

Mr Sampath P, chief financial officer told ETEnergyworld that “We started our turnaround in mid January 2018 to March 31. So, except for a few million barrels we processed, the entire period was used for the once-in-four-years block turnaround and the Tiger Cub project. So, there are no operating numbers during this period as the quarter mostly involved capex spending.”

The company reported a 6 per cent increase in revenue from operations at INR 34,947 crore during the financial year as compared to INR 32,975 crore reported for the previous fiscal. The refiner’s gross refinery margins (GRM) increased to USD 9.4 per barrel during 2017-18 as against USD 8.4 per barrel in the previous fiscal.

The company said that “Throughput in FY18 was 7.19 MMT, a reduction of 20.9 per cent on FY17 due to the major turnaround in Q4. The refinery completed the execution of all project upgrades during the turnaround.”

Mr S Thangapandian, Chief Executive Officer said that the company expects to report GRM of over USD 9.4 per barrel in the current fiscal, adding the refiner is better placed than its peers in the region to meet the International Maritime Organization (IMO) 2020 standards. “We are trying to make some modification in the products to meet the IMO specifications too. The initial period will involve more focus on the blend strategy than the capex strategy.”

Mr Thangapandian said that main focus areas of refinery operation will be increasing its market share in the region, increasing the direct sale of aviation turbine fuel (ATF) to airlines operating from Manchester, Liverpool and Leeds and ramping up retail outlets in UK to 400 in the next 5 years.

He said that “We have around 53 operational retail outlets in the region with an additional four in the pipeline. We are looking at increasing the number by 65 retail outlets in the present financial year.”

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Posted By : Nanda Koijam on Fri, 06 Jul 2018
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