Calcutta, May 12: Essar Oil has suffered a net loss of Rs 515 crore in the fourth quarter ended March 31, 2012. The company had posted a net profit of Rs 321 crore in the same period a year ago. Gross revenues grew by 29 per cent year-on-year to Rs 19,160 crore.
The loss in bottomline is on account of a decrease in refinery throughput because of a planned shutdown, decline in gross refinery margin, shutdown expenditure, and the reversal of a sales tax incentive.
Gross refinery margin in Essar Oil’s refining business in the fourth quarter stood at $4.60 per barrel compared with $5.29 per barrel year-on-year.
“During the year, we completed our refinery expansion programme and this has made us the second largest single-location refinery in India and one of the most complex refineries in the world. It has opened up new markets for our products and provides flexibility for sourcing of crudes,” said L.K. Gupta, managing director and CEO of Essar Oil.
“With our optimisation programme now nearing completion, we have reached the closure of our major capex initiatives. With this, we have significantly moved up in the refining value chain and are now fully focused on delivering the value of investments to the stakeholders,” he said.