Essar’s major investment in 2018 will increase annual throughput from 68 million to 75 million barrels with the Tiger Cub project expected to deliver enhanced yields of high value products, reduced crude costs and drive revenue growth.
Operational and financial performance: Key indicators
|March ending||Q4 FY17||Q4 FY16||FY17||FY16|
|Throughput (in MMT)||2.22||2.20||9.09||8.97|
|Gross Revenue (in $m)||1,327||951||4,924||4,992|
|KBC benchmark ($/bbl)||4.5||4.8||4.2||6.3|
|CP GRM ($/bbl)||9.2||6.8||8.4||9.3|
|∆ KBC v CP GRM ($/bbl)||4.7||2.0||4.2||3.0|
|EBITDA (in $m)||86||55||311||359|
|Profit before tax (in $m)||115||28||257||251|
|Profit after Tax (in $m)||54||65||168||244|
Stanlow margins over the KBC Benchmark improved to $4.2/bbl in FY17 due to ongoing margin booster initiatives, despite the industry benchmark dropping $2.1/bbl from the previous year.
Stanlow produces 16% of the UK’s road transport fuel demand, processed 9.09 MMT of crude, a 1.3% increase on the previous year’s 8.97 MMT.
Essar Oil UK has established working capital facilities and no long-term debt.
“With a strong financial base and key improvement projects set to be completed this fiscal, we’re now looking forward to the continued growth of the company with an increased commercial focus,” said chief financial officer Sampath P.
“Despite a weaker market, this is another impressive set of results that has helped to build a business with a net worth of almost a billion dollars.”
“The continued ambitious expansion of our UK retail network and direct aviation fuel supply business are also important strategic elements in the drive to build a fully integrated downstream energy company,” added chief executive officer, S. Thangapandian.
Already a major player in the wholesale supply of Jet A-1 to UK airports, Essar secured contracts for the direct supply of aviation fuel to major airlines such as Emirates, Etihad, Jet2.com and Oman Air.
An award-winning entry to the UK retail market has seen the Essar network grow to 36 stations, with planning permission secured for the first company owned site to be opened later this year.
During FY17, a number of new monthly records were established for the highest CD4 Distiller crude throughput under Essar ownership, the highest ever amount of residue upgraded via Europe’s largest Catalytic Cracker and the highest ever production levels of diesel, alkylate and propylene.
Since acquiring Stanlow in July 2011 Essar will have invested over $800 million (including FY18) which has helped to turnaround the business and deliver significant improvement in safety performance and has enabled the refinery to meet tighter environmental legislation on emissions.
In FY15 Essar reconfigured and optimised Stanlow to a single train operation which increased the yield of high margin products such as gasoline and middle distillates, while the crude slate has been materially diversified with the introduction of 37 new grades.