- OIL AND GAS: Capex cycle ended with completion of Vadinar refinery expansion and optimisation projects
- POWER: 1,580MW of new capacity commissioned; 2,800MW now operational
- Group Current Price (CP) EBITDA[2]: US$737.1 million including sales tax benefit but before its subsequent reversal and before foreign exchange impact (2010: US$697.0 million)
OIL AND GAS:Capex cycle ended with completion of Vadinar refinery expansion and optimisation projects
- Vadinar refinery expansion completedin March 2012, raising complexity to 11.8 andcapacity to 18 million tonnes per year/375,000 barrels per day
- Vadinar refinery optimisation project to 20mmtpa/405,000bpdcompleted in June 2012,four months ahead of schedule
- Current price gross refinery margins at Vadinar refinery improved in 15 month period to US$4.45 per barrel (excluding sales tax incentive) compared with US$3.98 per barrel in 2010
- 17.1mmt/125m barrels throughput at Vadinar in 15 month period(2010:14.7mmt/107.2mbarrels)
- 6.8mmt/51.3m barrels throughput at Stanlow refinery for 8 months of ownership,in line with expectations. Significant margin improvement initiatives continuing
POWER:1,580MW of new capacity commissioned; 2,800MW now operational
- Two projects commissioned: Vadinar P1, 380MW, and Salaya I, 1,200MW (post period end)
- Group of Ministers provisionally approves forest clearance for Mahan coal block
- Final forest approval obtained for Aries coal mine – infrastructure under construction
- 93%-99% power plant availability
SALES TAX AND FUNDING:
- US$300m 3 year debt facility completed to refinance Stanlow acquisition bridge loan
- US$250m 3.5 year loan facility agreed with Essar Global
- Gujarat High Court to give direction ondeferred sales tax repayment schedule and interest payments
- Advanced discussions with banks regarding c.US$1 billion loan facility to meet sales tax liability
- Reversal of sales tax benefit revenue previously recognised of US$1,053.7million (US$645.3million net impact after tax)
RESULTS FOR 15 MONTHS TO MARCH 31 2012 EXCLUDING EXCEPTIONAL ITEMS [1](reflecting switch to March year end):
- Strong group revenue growth up to US$22.0bn (2010 12 months: US$10.0bn), primarily due to higher refining and marketing revenues in India from higher selling prices and the Stanlow refinery acquisition
- 14% depreciation of Rupee during 15 month period resulted in an overall forex impact of US$317 million1 on EBITDA2, including revaluation impact and other forex losses of US$243.2million
- Group Current Price (CP) EBITDA2 of US$737.1 million including sales tax benefit but before its subsequent reversal and before foreign exchange impact (2010: US$697.0 million)
- Profit before tax and profit after tax before exceptional items of US$129.0 million (2010: US$365.5 million) and US$98.2 million (2010: US$248.3 million),respectively
- Impact of exceptional items on profit before tax and profit after tax of US$1,276.7 million and US$862.5 million respectively
- Loss before tax and loss after tax after impact of exceptional items of US$1,147.7 million and US$764.3 million, respectively
[1]See page 19 for an analysis of the exceptional items
[2] See pages 16 to 18 for a definition of adjusted EBITDA and CP EBITDA. Note CP EBITDA presented above is on a Group wide basis
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