Essar Oil posts Rs 3,986 cr loss

As part of the fund-raising plan,the company has asked its parent Essar Energy to convert its foreign currency convertible bonds holding of Rs 1,396 crore in the company to equity immediately. The company also plans to raise fresh equity of Rs 3,000 crore by issuing fresh equity shares in the next 12-15 months, said L K Gupta,managing director and chief executive officer,Essar Oil.

The money raised will be used to raise the net worth of the company and we will also use it to retire some of our Rs 15,400 crore debt, he added. London-listed Essar Energy Plc has 87 per cent stake in Essar Oil and after the FCCB conversion,its stake will increase by another 5 per cent to 6 per cent,said Gupta. Essar Oils net worth as of December 2011 stands at Rs 2,854 crore.

The companys gross refining margin came down to $6.07 per barrel during the quarter from $7.21 per barrel in the same quarter last year.

Revenues grew marginally by 0.6 per cent to Rs 13,897 crore. Revenues were impacted because of lower throughput as the refinery was shut for 35 days for maintenance, Gupta said.