New Delhi, July 6 (Representative) Essar Oil (UK) has reported Q1 2022 revenues of $3.72 billion, compared with the $2.03 billion posted in the first quarter of 2021. Volumes were up 8 per cent in the first half of the calendar year 2022 to 3.2 million tons against the same period last year (Jan-June 2021: 2.96m), a statement from the company said. The company said it ceased importing all Russian products (including diesel) from mid-April this year and has successfully replaced any shortfall from this strategy by maximising indigenous diesel production as well as sourcing non-Russian diesel. “Our objective continues to be to support the UK’s longer term fuel security and resilience, and do what we can to meet the needs of our customers in the face of tighter levels of supply,” the statement said.
The company said during the quarter, trading was significantly ahead of previous forecasts driven by increased demand for locally produced fuel amidst the tight global supply situation. “This stronger financial performance has enabled Essar to improve its capital structure and strengthen its balance sheet. Essar’s overall debt levels for the current fiscal year are significantly less than 1x expected EBITDA, in line with our low leverage approach to capital structure,” it said. Deepak Maheshwari, Chief Executive Officer of Essar Oil UK, said, “After a very challenging 18 months, we have made huge progress on all fronts in the first quarter of 2022/23.
I would like to thank our people for their hard work, dedication and commitment in what has been an unprecedented two years for our business and the sector as a whole. Volumes are now largely at pre-covid levels and we have been able to significantly strengthen our balance sheet and operating performance.” ” We accelerated our support of the UK’s transition away from relying on Russian products and have ceased all Russian imports, while ramping up production of UK-made diesel. We look forward now with real confidence and a very clear strategy – we will be the UK’s first low carbon refinery – supplying the fuels of the future, both in terms of low carbon processes for traditional fuels, and also biofuels and a huge investment into the UK’s hydrogen future. We are delivering on our strategy and securing the long term future of this important facility.”