In my opinion I was expecting a bit of a drop this week mainly due to the general macro conditions. Too many ifs and possible negative developments at the moment (Greece & Spain in the eurozone short-term and the US budget shortfalls medium term) for the market to stay positive. Saying that, the Essar SP seems to have taken more of a hit than what would be expected for the general market negativity. Perhaps the market was expecting more from Essar Oil whose results seemed ok as they reverted back to profit in Q3, however only just. The results for the group are due out in a couple of weeks and I still do expect the SP to reach the 150 mark by then (providing we don't have some EU meltdown!). Just put it down to bad entry timing, medium to long term you should have nothing to worry about in my opinion.
i finally bought back into these on friday 100k worth at 1.38, having watched them for a few weeks and all the positive news coming out, i felt confident to buy back in at that level. really suprised and disappointed at todays fall, anyone know why? is it because the sensex was down today.
Mon, 12th Nov 2012 08:30 RNS Number : 8631Q Essar Energy plc 12 November 2012
Essar Energy commissions second unit at Vadinar P2 power plant
November 12, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that it has now commissioned the second of two 255 megawatt units at its Vadinar Phase 2 (P2) power generation project in Gujarat state.
The coal fired Vadinar P2 plant, with a total 510MW capacity, is now fully commissioned, providing power and process steam to Essar Oil's nearby Vadinar oil refinery, which has a capacity of 20 million tonnes per annum/405,000 barrels per day. The addition of coal fired generation will significantly lower generation costs and result in improved refinery margins. Power will also be sold to Essar Steel and into the merchant market.
Essar Energy's installed generation capacity now stands at 3,310MW, an increase of 1,710MW over the past 12 months. Of this, 2,110MW is captive capacity supplying power to Essar's refinery and steel plants, with revenues largely dependent on power plant availability rather than power generated.
Naresh Nayyar, Essar Energy chief executive, said: "The commissioning of the second unit at Vadinar P2 is an important step forward for our power business and also for the refinery given the positive impact this will have on margins."
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