Essar Oil reports net profit of US$105.2 million

India’s Essar Oil Ltd. announced net profit of US$105.2 million for the quarter ending June, from a loss during the same period a year ago, which the company attributes to an increase in both output and gross refining margin. The company said that revenue from operations rose 37%. Gross refining margins increased 27% to US$7.38 per barrel. Naresh Nayyar, chief executive officer and managing director, said “Since the last several quarters, we have been consistently reporting profits that have been driven by record refinery throughput and a healthy uplift in GRM.” The company has two oil refineries in operation, one located at Vadinar, India, and another in Mombasa, Kenya. The Vadinar refinery reported a throughput of 3.62 million tons for the quarter, compared with 3.68 million tons during the same period a year ago. The Vadinar refinery is undergoing expansion and will shut down for maintenance for 35 days, beginning September 18. The expansion project is expected to be completed by 2012 and will bring the company’s total refining capacity to 730,000 barrels per day. Essar Energy Plc is also acquiring Shell UK’s Stanlow oil refinery, which will give the company access to the U.K. Market. (July 12, 2011)