Essar Oil Ltd., which operates India's second largest private sector refinery and the largest private sector oil retail network, today reported robust growth across its refining and retail functions in FY 2016-17.
The refinery throughput grew by almost 10% to 20.95 million tonnes, compared to 19.10 million tonnes in the previous fiscal. Retail sales went up by 75% to 2.8 million KL from 1.6 million KL in FY 2015-16. The retail network grew by almost 67%: Essar Oil had 3,499 operational outlets as on 31 March 2017, while 2,631 others were under various stages of implementation. At 2.8 million KL, the retail sales volume also increased significantly by 75%.
Over the years, Essar Oil has invested in a series of upgrades and modifications at the 20 million tonne Vadinar refinery to maximise margins. On 15 October 2015, the refinery successfully completed a 28-day planned shutdown—a period when the VGO-HT unit was converted into a mild Hydrocracker unit to enable the refinery to convert the entire VGO (Vacuum Gas Oil) into higher margin products. The company also modified its crude blend window to enable the refinery to process higher volumes of ultra-heavy and high acidic crudes. During the financial year ended 31 March 2017, the refinery converted most of its VGO into Gasoil and other value-added products. The crude API also improved to 23.3, which helped in overall reduction in crude cost, thus enhancing refinery margins.
Mr Lalit Kumar Gupta, MD & CEO, Essar Oil, said: "This year, we achieved the highest ever throughput since the commencement of commercial operations at the Vadinar Refinery in May 2008. Our retail growth was quite remarkable and we received Platts' Global Energy Award for Downstream Company of the Year in December. I congratulate the entire Essar Oil team for delivering such a stellar performance."
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