Millennium Post

Essar Energy reduces FY13 loss to $163 mn on better earnings

London-listed Essar Energy Plc on Monday reported a pre-tax loss of $163.2 million in 12 months ended 31 March and said it will spend $200 million to convert two of its gas-based power plants in Gujarat to coal owing to shortages in domestic supplies.The firm had reported a pre-tax loss of $1.15 billion in the 15 months ended 31 March, 2012.

Essar Energy this year moved its year-end to March from December, making the previous comparative period a 15 month one.Company chief executive Naresh Nayyar said earnings before interest, taxation, depreciation and amortisation, on a current price basis, was $1.33 billion in the year ended March 31, compared with $484.5 million in the 15 months ended 31 March, 2012. The rise in earnings was primarily due to improved refining capacity at Vadinar refinery in Gujarat as well as Stanlow refinery in UK which pushed up margins.
Full-year refining margins rose 79 per cent to $7.96 per barrel.

Nayyar said the company has decided to convert the 515 MW Hazira power plant and 500 MW Bhander power station to coal fired boilers based on imported coal due to issues regarding availability of domestically produced natural gas.'Considering gas position in the country, it doesnt make sense to generate electricity using high-priced imported LNG,' Nayyar said adding the conversion would take 3 years to complete. Many of the gas-based power plants in the country are stranded due to an unanticipated fall in output from Reliance Industries' eastern offshore KG-D6 gas fields.
Agencies

Agencies

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