Essar Energy plc (ESSR.L) reported Thursday a 34% decline in pre-tax profit for the first half of the year, hurt by higher costs, despite double-digit revenue growth driven by higher volumes and prices.
The Indian energy company listed in London bourse also announced the appointment of P. Sampath as its Chief Financial Officer, succeeding Gerry Bacon, beginning September. Bacon will be leaving the company at the end of September, as he has decided to return to academia.
Prior to joining Essar group in August 2008, Sampath has held a number of financial roles, including Finance Chief at RPG Enterprises Limited and Managing Director of GHCL Limited. He will be based at the group's offices in London and will report to Naresh Nayyar, Essar group's Chief Executive Officer.
The integrated energy company, which completed its IPO during the first half to raise net proceeds of US$1.85 billion, reported profit before tax for the first half of US$154.4 million, lower than US$233.6 million in the year-ago period.
On an after-tax basis, profit attributable to equity interest was US$91.1 million, compared to US$112.8 million last year. Basic earnings per share dropped to 8.7 cents from 12.7 cents a year ago.
Revenue for the first half, meanwhile, surged 66% to US$4.76 billion from US$2.87 billion in the prior year period, primarily due to 20% rise in refinery sales volumes and 51% higher average refinery sales prices.
In the first half, revenues from refining and marketing climbed 68% year-over-year to US$4.59 billion, mainly on increased refinery product sales, higher oil prices and increased throughput. The Vadinar refinery in the state of Gujarat in India processed 7.28 million metric tonnes of crude oil, a record throughput, 19.9% higher than the same period last year.
Power revenues grew 18% to US$170.5 million, mainly as a result of a full period of operation of the Essar Power (Canada) power generation plant. The company noted that solid operating performance in the segment was in line with expectations.
First-half production from Essar Energy's only producing oil field, in Gujarat, was 4,277 barrels, up from 221 barrels in the prior period.
However, gross profit fell to US$298.4 million from US$397.0 million last year, as an 80% rise in cost of sales to US$4.47 billion offset strong revenue growth. Looking ahead, Essar Energy said in a statement, "Petroleum product demand in India continues to demonstrate strong growth supported by growth in the Indian economy, increases in per capita income, growth in vehicle ownership and the focus on infrastructure spending. As a result, India will remain the anchor market for Essar's expanded refinery capacity with sales to public sector oil companies, direct bulk sales and sales through our retail fuel network."
The company projects the competition caused by the anticipated deregulation of diesel prices in India would increase sales and profitability of its retail fuel network.
On the London Stock Exchange, ESSR.L is currently trading at 416.70 pence, up 8.10 pence or 1.98%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.