Robust financial performance

Essar has invested over $850 million since acquiring Stanlow in July 2011
Essar Oil (UK) Limited, which owns and operates the Stanlow Refinery, has reported robust financial results for the fiscal year ending March 31st 2018.
The refinery remains a key national asset, producing over 16% of the UK’s road transport fuel demand.  Throughput in FY18 was 7.19 MMT, a reduction of 20.9% on FY17 due to the major turnaround in Q4.
The refinery completed the execution of all project upgrades during the turnaround. It is expected the margin improvements will yield an incremental margin of US $75 million to US $80 million annually in the prevailing market.
Essar’s optimised reconfiguration to a single train site, material diversification of the crude slate and an ongoing focus on margin booster initiatives in recent years resulted in a delta over the benchmark margin of US $4.00/bbl, as against under US $1.00/bbl in 2012.

Operational and financial performance:  Key Indicators

March endingFY18FY17Change
Throughput (in MMT)7.199.09(20.9%)
Gross Revenue (in US $m)5,4274,924+10.2%
CP GRM (US $/bbl)9.48.4+11.9%
EBITDA (in US $m)300311(3.5%)
Profit after Tax (in US $m)161168(4.2%)

Including FY18, Essar has invested over $850 million since acquiring Stanlow in July 2011, helping to turn around the business and build a company that is both profitable and sustainable.
The Board has a strategic focus to further improve the financial performance of the company through the continued growth and development of the business in the UK and beyond.
For the first time, the company leased storage in Rotterdam, together with blending and jetty infrastructure, in order to cater to gasoline export markets directly.
Essar Oil UK has established working capital facilities and no long-term debt.
“Stanlow has emerged as a top tier refinery in Europe, with 16% market share in the UK and a growing presence in the retail and aviation sectors,” said chairman, Prashant Ruia.
“We will continue to make proactive investments in technology to build a sustainable business that remains competitive in the rapidly changing global energy market.”
The major turnaround proved a complex and challenging period and we will ensure all learnings are rigorously understood and implemented for the future,” said S. Thangapandian, chief executive officer.
“The completion of project Tiger Cub was a major positive and is already exceeding our expectations in some respects.  Going forward, the focus remains on the delivery of further margin booster initiatives to improve yields and increase volumes to grow market share.”