OREANDA-NEWS. May 14, 2012. Refinery expansion project to increase capacity to 18 MMTPA and complexity to 11.8 completed, leading to significant upside in refinery value chain.

Optimisation project to further increase capacity to 20 MMTPA on track; completion expected by September 2012

FCCBs of USD 262 million issued to Essar Energy PLC made compulsorily convertible; giving boost to net worth impacted due to one time sale tax reversal

Writ petition seeking direction on the repayment instalments and interest in relation to its sales tax deferral liability admitted by Honourable Gujarat High Court.

CDR exit proposal expected to be approved shortly

Financial Highlights

Gross revenues for Q4FY12 up 29% to Rs 19,160 croreas compared to Rs 14,846 crorereported in Q4 FY11. Revenues for FY12 was up 19% Rs 63,340 crore compared to Rs 53,119  crorein FY11.

Q4FY12 EBITDA at Rs 444 croredown 51% against Rs 911 crore in Q4 FY11.EBITDA for FY12 stood at Rs 2,106 crore, down 24% from Rs 2,779 crore for FY11 mainly due to sales tax incentive not available in Q4FY12 and lower throughput due to planned shutdown.

CP GRMfor Q4FY12 stood at USD  4.60 /bblcompared to USD  5.29 /bb in Q4FY11. For FY12, it was USD  4.23 /bbl compared to USD  4.53 /bblin FY11.

Refining

Throughput of Q4FY12 up 10.4% at 4.03 MMT against 3.65 MMT in Q4FY11, due to increase in the refinery capacity. Throughput for the FY12 stood at 13.49MMT against 14.76MMT FY11;lower due to 35-day planned shutdown undertaken in September/October 2011.

Substantial quantity of ultra heavy crude, required for expanded, high complexity refinery, tied up from both domestic and international resources.

Refinery maintains its excellent safety track record with 1460LTI free days as Mar 31st March, 2012.

Sales and Marketing

Essar Oil has over 1,600 operational and under construction outlets.

Launched VG 30 Bitumen in the market.

Added sevennew CNG stations in the quarter; EOL has total of threeauto LPG and 14 CNG stations in its retail network

Exploration & Production

Producing 25,000 scmdof CBM gas from 15 to 20 wells in Ranigunj, supply to end customers through pipeline and cascades continuing.

Environmental Clearance for Phase – I (15 test wells) &  phase-II (58 wells) received. Final environmental approval  from MoEF for Phase III, expected by Sept ’12

Proven and probable reserves at Raniganj CBM block significantly increased to 113 bcf while best estimate contingent resources are at 445bcf gross and best estimate prospective resources are at 297 bcf.