Companies

Essar Oil UK posts record net

Our Bureau Mumbai | Updated on January 20, 2018 Published on May 23, 2016

FY16 profit zooms to $248 million

Essar Oil UK reported its highest ever net profit of $248 million (₹1,661 crore) for FY16, up 248 per cent from $70 million in FY15. Essar Oil (UK) Ltd is a wholly-owned subsidiary of Essar Energy Ltd. It owns and operates Stanlow Refinery in Ellesmere Port, near Liverpool. The refinery produces 16 per cent of road transport fuels in the UK, including 3 billion litres of petrol, 4.4 billion litres of diesel and 2 billion litres of jet fuel each year.

The refinery reported a gross refining margin of $9.3 a barrel, against $8.3 in FY15. Gross refining margin is the difference between the cost of crude oil and the final selling price of refined products. The crude throughput was 8.97 million tonnes for the year, up by 5 per cent. The company is also looking to enter the fuel retailing business, with seven sites already operational. It plans to increase the retail network to 400 sites over the next three years.

Since most retail outlets in the UK are dealer-owned and operated, the company said that its capital investment for this expanding the network would be negligible.

In a conference call with journalists, Naresh Nayyar, Executive Chairman, Essar Oil UK, said the company is undertaking capital expenditure of $137 million (over ₹900 crore) for Project Tiger Cub, which will make improvements to the refinery so that it can process cheaper but heavier variations of crude oil.

Published on May 23, 2016
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