ESSAR ENERGY INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012
RESULTS FOR SIX MONTHS TO 30 SEPTEMBER 2012: · Group revenue up 97% to US$12.8bn (six months to 30 June 20111: US$6.5bn), primarily due to higher refining revenues in India from higher capacity and revenue due to the acquisition of Stanlow, UK · Group Current Price (CP) EBITDA2 of US$582.6 million in H1 FY13 (six months to 30 June 2011: US$198.6m), up 193% on H1 FY121, driven by increased refinery margins and throughput at Vadinar refinery and the contribution from Stanlow refinery offset by lower operational EBITDA2 from power · Loss before tax and loss after tax of US$282.8 million and US$200.8 million, respectively (six months to 30 June 2011: Profit of US$278.5 million and US$206.2 million, respectively), with increased operational EBITDA2 being offset by higher interest costs and depreciation due to the commissioning of the Vadinar refinery phase 1 and optimisation projects and Salaya I, increased foreign exchange losses and sales tax benefit not available in the current period
Week, footsie down last week and essr drops 20p, this week the footsie regains all it's losses but essr rises just 2p for the week. I think this is being kept down deliberately by the markets. If the results are good it will probably go back to the 1.37 mark and the big winners are the market who will make on the bounce.
Bond risk for Indian companies has slid this year. The average cost of five-year credit-default swaps insuring against non-payment by seven local issuers declined 156 basis points to 305, according to data provider CMA, which is owned by McGraw- Hill Cos. and compiles prices quoted by dealers in privately negotiated markets.
Essar Energy’s equity-linked notes are headed for a fourth month of gains. The group is aiming at a 30 percent jump in revenue in three years to $35 billion as it taps demand for infrastructure in Asia’s third-largest economy, Prashant Ruia said in June.
“Essar had defaulted many years ago, but thereafter they have been doing quite OK,” said SJS’s Dharnidharka. “Their businesses are generating cash. Earlier the concern was how they are going to go ahead but fortunately for them, in the last few years their businesses have picked up. That’s a big positive.”
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