Reply #33: Rising global demand to boost refining industry: Essar Oil

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http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=535711

Essar Oil’s fourth quarter (January-March) net profit surged 78% year-on-year to Rs 321 crore, driven by strong sales and higher gross refining margins. The quarterly sales rose 27.4% y-o-y to Rs 13, 564 crore, and gross refining margin was USD 8.15 per barrel compared to USD 5.37 last year.

For the full year, the company clocked a net profit of Rs 654 crore from Rs 29 crore last year, and net sales increased 28.4% to Rs 47,905 crore. Gross refining margin (GRM) for the year was USD 6.91 per barrel versus USD 3.70 per barrel last year.

In an exclusive interview with CNBC-TV18, Naresh Nayar, managing director of Essar Oil says the company's margins have improved on the back of rising global demand. “It is largely driven by the developments that have taken place with the Middle-East, as well as the Japanese crisis,” he says.

He also adds that the company’s margins have improved last one year. “Last year, we saw 2.9 million barrels per day of growth in oil demand globally. If this trend continues, 2011 should also be a good year for the refinery industry,” he adds.