Essar Oil slips into red, sales dips by 24%

Our Bureau MUMBAI

THE Ruias-owned Essar Oil on Saturday slipped into the red in the September
quarter because on lower sales and poor refinery margins.
   The company has suffered a net loss of Rs 94 crore in September quarter
against a net profit of Rs 26 crore in the year-ago period. Total sales,
during the period, dipped by 24% to Rs 11,144 crore. The company’s 10.5
million tonnes per annum refinery at Vadinar in Gujarat reported a refining
margin—income from processing every barrel of crude oil— of $4 per barrel
against $6.6 per barrel during the corresponding previous quarter. It has
reported a forex loss of Rs 80 crore against a forex gain of Rs 66 crore.
   Essar Oil has valued its inventory lower by Rs 55 crore, leading to
increase in loss before tax, thanks to a change in its method of inventory
valuation, said Essar Oil in its regulatory filing to stock exchanges.
   During the quarter, the company tied up a debt of Rs 4,600 crore for the
upgradation of the refinery to 16 mmtpa, the company said in a media
statement.

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