- 23 Jul 2010 14:56
July 2010 - Market Cap of £6bn ; Founded in 1969.
Floated on the LSE in May 2010
Indian parent Company Essar Group comprising Essar Oil & Gas, Essar Power.
Specialising in power generation & oil & gas operations in India
- 23 Jul 2010 15:03
- 2 of 101
Heavily tipped by this week's Shares Mag as a direct play on the Indian Market, rather than going through a fund.
The half-year results for the period ended 30th June 2010 will be released on 19th August 2010.
- 21 Aug 2010 14:59
- 3 of 101
Slightly edited version of article written by Martin Waller in the Times, following the resignation of the CFO:
"When it came to the London market in may, ESSR was the biggest float by a foreign company for three years & the biggest float by an Indian company. But the shares, on what was admittedly an inauspicious day for anyone to debut, sank 7%. They were largely mistrusted & we begin to understand why.
In January Jerry bacon was appointed CFO. This summer he decided to retire, to study the History of Art at Reading Uni. This was communicated to the markets in the interim figures. Mr. Bacon says he has no wish to discuss his private life, nor should he have to, but questions need to be asked not least because ESSR, as a high-growth company, is asking investors to take a lot on trust.
According to Deutsche bank's estimates, the shares sell on 55 x this year's earnings, shrinking to 15 x next year's. This suggests some ambitious plans & ESSR is spending $11bn over the next four years, $1.5bn in the first half, to achieve it. India is not the easiest place to do business & there must be some doubt as to whether those plans are achievable. It takes a lot on trust & the departure of the main money man so soon does little to foster this. AVOID."
- 21 Aug 2010 15:00
- 4 of 101
"Essar Energy's first half pre-tax profits fell 34% to $154.4m.
Revenues for the six months to the end of June rose 66% to $4,764.8mand net debt fell 27% to $2,221.8m.
Essar said 16 major growth projects were under execution or at advanced stages of development with capital expenditure of more than $1.5bn compared with $0.3bn a year ago.
Essar said the first half of 2010 was a period of transformation with the initial public offering raising 1,274.4m - the largest primary offering in the London market since 2007."
- 21 Aug 2010 16:32
- 5 of 101
cynic we know you "love" chinese companies how do you feel about investing in indian companies?
- 21 Aug 2010 16:43
- 6 of 101
an awful lot better!
- 01 Jan 2012 20:16
- 7 of 101
The Sunday Times - Share tips for 2012 - Published 1/1/2012
Today's Business section of the Sunday Times has an article called "Our share tips for 2012" in which Sunday Times staff pick the shares they believe will do well in 2012. Their share tips for 2012 are:
Essar Energy - "Fill your boots
- 01 Jan 2012 21:49
- 8 of 101
Could you post all the Times tips on the 2012 views and tips thread please.
- 02 Jan 2012 15:44
- 9 of 101
Well, having flagged this one up in June 2010, it has truly performed abysmally, and difficult to know if this is the bottom or not.
- 02 Jan 2012 15:57
- 10 of 101
Will keep one eye on them.
This news put out on Dec 21 2011
Essar chairman stands aside after allegations
Ravi Ruia has decided to temporarily step aside as chairman of Essar Energy, the India-focused integrated energy company, although he will continue as a director.
This decision follows allegations by India's Central Bureau of Investigation (CBI) that Mr Ruia and certain other executives of the Essar Group, and Essar Teleholdings, an Indian company belonging to the Essar Group, had suppressed facts relating to the extent of its equity holding in Loop Telecom Limited.
There are no charges of bribery or corruption or collusion with public servants.
The allegations relate principally to a certification given by Loop Telecom at the time of grant of Universal Access Services licenses (mobile telecom licenses) that Loop was in compliance with Clause 8 of the guidelines under which such licenses were issued.
This clause prohibits any shareholder company (directly or through its associates) from holding 10% or more equity shareholding in more than one mobile licensee company.
Essar Group says it is surprised and disappointed by the stand taken by the CBI especially because the Indian Ministries of Law & Justice and Corporate Affairs have already reviewed the facts and confirmed that the direct and indirect shareholding of the Essar Group in Loop was below 10% and therefore there was no such violation and that no prima facie case of any offence can be made out.
Mr Ruia and Essar Group deny all charges and intend to take legal recourse to defend their position. These charges do not relate to Essar Energy, or any of its businesses and subsidiaries, and are not expected to have any impact on Essar Energy's business operations.
At 11:10am: (LON:ESSR) share price was -2.2p at 175.8p
- 17 Jan 2012 16:16
- 11 of 101
Now ESSR will need to pay huge tax imposed by Indian government.
- 17 Jan 2012 16:21
- 12 of 101
Correction: Supreme Court order on Sales Tax Case
RNS Number : 7163V
Essar Energy plc
17 January 2012
Correction: Supreme Court order on Sales Tax Case
January 17 2012: Essar Energy plc's [LSE: ESSR] subsidiary Essar Oil Limited today made the following announcement to the Bombay Stock Exchange:
Today, the Hon'ble Supreme Court has set aside the judgment of the Gujarat High Court by which Essar Oil was entitled to avail of Sales Tax Deferment Scheme, ie, to pay Sales Tax to the State government in deferred installments. The company has availed of approximately INR 63 billion (approximately US$1.235 billion) of Sales Tax benefit which was to be paid in deferred installments.
The company will provide further information in the matter after studying the judgment passed by the Hon'ble Supreme Court.
Notes to editors:
1. This case relates to the Gujarat state's Capital Investment Incentive to Premier/Prestigious Unit Scheme, 1995-2000.
2. The Supreme Court of India set aside the earlier judgment of the Gujarat High Court that extended time to Essar Oil Limited for the commencement of commercial production of the Vadinar Refinery. Under the original incentive scheme the Vadinar refinery was required to commence commercial production by 15 August 2003 but the actual commencement of commercial production was after this date. Sales tax collected to date totals approximately US$1.25 billion.
3. Essar Oil Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and is a subsidiary of Essar Energy, which owns 87.1 per cent of the shares.
- 17 Jan 2012 16:22
- 13 of 101
Did not like the sound of the chairman.
- 17 Jan 2012 16:26
- 14 of 101
Dont fill your boots as the Sunday Times said. :-))
- 17 Jan 2012 18:56
- 15 of 101
Has there been any comment by The Sunday Times since they tipped it
- 17 Jan 2012 19:05
- 16 of 101
It was only last Sunday they tipped this company. This news as I take it only come out today on the RNS. Your not going to invest are you aldwickk. :-))
- 17 Jan 2012 19:42
- 17 of 101
No , but it could be worth a small punt
- 17 Jan 2012 19:43
- 18 of 101
Sorry it was tipped 1st Jan, have not seen a article about the tip. Being fair they like all investors had no idea this RNS would come about.
- 17 Jan 2012 19:46
- 19 of 101
Put £50 in in the morning and it will be a £5 by close. lol . You never know could be a good investment.
- 18 Jan 2012 12:07
- 20 of 101
In India, Essar fallen 11% today.
- 18 Jan 2012 14:07
- 21 of 101
this has been a stinker from Day1
- 18 Jan 2012 14:30
- 22 of 101
Morgan Stanley note:
Yesterday’s court ruling in India could see Essar having to pay up to £650m in tax to the Gujarat state government, which ultimately could lead to default of loans at Essar Oil. This could lead to further defaults for the convertible bond and Stanlow working capital facility. Essar is looking to appeal the Supreme Court’s decision.
What has happened? Essar Oil, a subsidiary 87% owned by Essar Energy, received a negative ruling from the Supreme Court of India yesterday. This relates to a tax benefit for Essar Oil at its refinery facility (Vadinar) in the state of Gujarat. In the 1990s, to encourage investment in the state, Gujarat allowed certain tax holidays. Essar initially started building its refinery in the 1990s, but due to a severe cyclone, this disrupted building, and consequently it was not completed until 2008. The company went to the state high court to be allowed to receive the tax benefit, as it argued that the delay was outside of its control. It was granted this benefit. This decision to reverse at the Supreme Court repeals the state’s high court decision.
What is the tax benefit? Essar Oil is allowed to collect sales tax on goods sold, and does not have to pay this back to the state of Gujarat until 2021 (or until it exhausts its limit, which is Rs91bn).
Can Essar appeal? It believes it can put in a review petition to get the judgment reviewed again. This could take up to three months to get a decision.
How quickly will the tax have to be paid? This is unclear, but could be important. Under the current terms of repayment, the tax should be paid back in six equal annual instalments. The judgment from the Supreme Court is unclear on whether this holds, or whether an immediate payment will be required.
Is Essar Oil in default? Technically yes, but Essar had been negotiating with lenders to reorganize the structure and remove the sales tax issue as a covenant. We expect the lenders to wait to see the outcome from the legal process before taking further action.
- 18 Jan 2012 17:04
- 23 of 101
Essar Energy is bouncing back after yesterday's sell-off, which was sparked by an Indian tax ruling. Essar Oil , the Essar subsidiary hit by the ruling, is examining all legal options and expects to file a review petition in the Supreme Court within the next 30 days.
- 19 Jan 2012 19:38
- 24 of 101
. The oil refiner’s shares crashed earlier this week after an Indian court ruled the company can no longer benefit from a tax referral scheme. Having since recovered some of those losses, Essar slid 16.2 to a new low of 120p as Goldman Sachs (NYSE: GS - news) cut its price target to 190p from 280p.
“We believe the company’s growth story with a top quality refining asset, attractive exploration and production opportunities in India and large power plants about to be delivered remains attractive,” said analysts. “However, the Supreme Court verdict puts pressure on the company’s liquidity position.”
Analysts at JP Morgan Cazenove one of the banks that brought Essar to market in 2010 were also considering the impact from the ruling. If the sales tax deferral benefit is removed, they estimated that could cut their earnings-per-share estimate for 2011-12 by 44pc to 45pc, but they nonetheless held onto their “overweight” rating.
- 20 Jan 2012 09:42
- 25 of 101
Bought a few @116.20 , this morning
- 20 Jan 2012 11:18
- 26 of 101
If Indian law is anything like how's , which I think it is, then they could drag this out though the court's and the payment would be put on hold until a final decision is made . And this would give them time to renegotiate the payment or some other way to settle it.
- 20 Jan 2012 11:34
- 27 of 101
Yes, aldwickk, but the drawback for investors is apparent.
Look at what happened to VED, in part due to the
interference or procrastination of those who are supposed
to make us believe that the system has become less bureaucratic!
- 23 Jan 2012 14:55
- 28 of 101
I bought at 116 and sold out @ 123 for a daytrade , EK [Simon C ] did the same for a 10p profit
- 23 Jan 2012 17:05
- 29 of 101
LONDON (ShareCast) - The share price of India-focused integrated energy company Essar Energy (Dusseldorf: 11224817.DU - news) increased by over a tenth on Monday afternoon after the firm increased its best estimate contingent resources at the Raniganj coal bed methane exploration block. Total (Other OTC: TTFNF.PK - news) proven and probable reserves at the block came in at 113bn cubic feet (bcf) gross, or 18.8m barrels of oil equivalent (mmboe). As such, best estimate contingent resources are now 445 bcf gross, or 74.1mmboe, compared with the previous evaluation, carried out in December 2009, which showed 201bcf gross, or 34mmboe
- 15 Feb 2012 13:00
- 30 of 101
Morgan Stanley has upgraded ESSR from underweight
to equal-weight and raised the target price from 160p
- 15 Feb 2012 14:09
- 31 of 101
Trading statement on the 27th Feb. Can't decide if this is the bottom or not.
- 15 Feb 2012 14:18
- 32 of 101
Bought back in @128.6
- 16 Feb 2012 08:54
- 33 of 101
Essar Oil files Review Petition with Supreme Court of India
16th February, 2012: Essar Energy plc's [LSE: ESSR] subsidiary Essar Oil Limited today announced that it has today filed a review petition in the Supreme Court seeking a review of the apex court's decision relating to repayment of deferred sales tax. On 17th January, 2012, the Supreme Court had set aside a Gujarat High Court judgement permitting Essar Oil to claim a sales tax deferral benefit from the Gujarat Government.
The Gujarat High Court in an earlier order had extended time to Essar Oil for commencing commercial production from the Vadinar Refinery, thus allowing the Company to benefit from the Gujarat state's Capital Investment Incentive to Premier/Prestigious Unit Scheme, 1995-2000.
- 16 Feb 2012 14:07
- 34 of 101
Morgan Stanley note:
"ESSR shares price in tough outcomes for both Oil and Power. However, near-term newsflow could be negative for both, and coal supply concerns could still be the next big issue. We upgrade to EW but still see some downside to the shares near term.
We expect Essar to submit a review petition to the Supreme Court within the 30 day time limit following the adverse sales tax ruling of 17 January. Whilst we expect the original decision to be upheld, if the review is granted, a final decision could take a further 60 days. This is the first step in the process of resolving the sales tax issue. We look for further clarity on the potential timeline for repayment of benefit to date to the Gujarat government as well as intentions of lenders at Essar Oil. A final negative Supreme Court judgement could lead to an event of default, under the current terms of agreement for the lenders at Essar Oil – this could lead them to convert debt to equity at Essar Oil. Whilst we expect a restructuring of the existing debt rather than a conversion to equity, there remains the risk of severe dilution of Essar Energy’s 87% stake in Essar Oil.
And we still need clarity on coal: The 1200MW Mahan power station is expected on line by end March 2012. Without the use of its captive coal block, there is still uncertainty as to where coal for the station will come from. Full-year results on 27 February may not provide the answer, leading to more disappointment – it could even signal a further delay for the start-up at Mahan.
We set our price target at 160p, as we weight it 50% bear case 50% base case to reflect the near term risks. The shares price in no value from Mahan and Tori, as well we 50% chance of full dilution at Essar Oil. We would turn more positive if the shares headed closer to our bear case."
- 16 Feb 2012 15:23
- 35 of 101
Now they tell me , Bought back in @128.6 yesterday
- 17 Feb 2012 14:47
- 36 of 101
Essar Oil, a subsidiary of Essar Energy (LON:ESSR) has reported revenues of 13,897 crore in the quarter ended 31st December 2011, compared to Rs 13,809 crore in Q3 FY 2010-11.
The quarterly EBITDA was at Rs 490 crore compared to Rs 827 crore in the corresponding period last fiscal.
The Company registered a net loss of Rs 3,986 crore in Q3 FY 2011-12, on account of an exceptional debit of Rs 4,015 crore towards reversal of sales tax deferral income accounted during May 2008 to December 2011 pending decision on its review petition in the Supreme Court, compared to net profit of Rs 273 crore in Q3 of the last fiscal.
The Current Price Gross Refinery Margin (see Appendix for explanation of CP GRM) for the Refinery business in Q3 FY 2011-12 was US$ 6.07 per barrel, compared to US$ 7.21 per barrel in Q3 FY 2010-11.
Nine month ended performance: Revenues for nine months ended 31st December 2011 was Rs 44,180 crore, compared to Rs 38,273 crore for the nine months ended 31st December 2010.
CP GRM For the nine months ended 31st December 2011, it was US$ 6.94/bbl compared to US$ 6.50/bbl for the nine months ended 31st December 2010.
EBITDA for the nine months ended 31st December 2011 stood at Rs 1,662 crore, as against Rs 1,868 crore for the nine months ended 31st December 2010.
LK Gupta, EOL's CEO & Managing Director, said: "Our single-minded focus is on completing the Phase I expansion and optimisation projects at the Vadinar refinery by by March 2012 and September 2012, respectively. This will unlock substantial value for our shareholders by way of improved GRMs, higher EBITDA and better cash flows."
- 27 Feb 2012 10:02
- 37 of 101
Essar Energy's full year results were hit by a court ruling on a sales tax deferment scheme.
The company's pre-tax profits including sales tax benefit but before its subsequent reversal were $89.2m for the year to the end of December - 76% down on last time.
But the company posts a pre-tax loss of $881.1m for the year compared with a profit of $365.5m a year ago.
Earnings before interest, tax, depreciation and amortisation - including sales tax benefit but before its subsequent reversal and before foreign exchange impact - rose by 14% to $813.1m.
Chief executive Naresh Nayyar: "We were clearly disappointed that the Supreme Court of India set aside an earlier decision of the High Court of Gujarat which enabled us to benefit from a sales tax deferment scheme. We are seeking a review of this decision. We are also in discussions with the government of Gujarat with regard to a suitable repayment schedule. Simultaneously we are taking steps to ensure that the group has sufficient access to sources of funding and liquidity."
"In the Indian power sector, we are very pleased with the intervention of the Indian Prime Minister and encouraged by the recent steps being taken by government to address the key issues facing the sector in a time bound manner. "
"Despite this, given the delays we have experienced in securing consents required for our power project delivery, including clearances to source the domestic coal required to fuel the plants, we are refocusing our portfolio to concentrate on those projects where we can achieve best value for shareholders and deploy capital most efficiently."
"We are therefore making some tough decisions, with construction of three later stage coal-fired power projects to progress only against regulatory and coal mine milestones."
"In our projects, we have made excellent progress with the Vadinar refinery expansions and are close to completing a number of our major power projects totalling 2,910MW. "
"With this our current phase of expansion programme comes to an end; and as a result there would be a significant reduction in our capital expenditure over the next two years."
- 27 Feb 2012 18:39
- 38 of 101
The sales tax deferment scheme will be settled to ESSAR's advantage , the Indian government won't let it break-up this company.
- 27 Feb 2012 20:02
- 39 of 101
does that plea mean that you hold these?
- 27 Feb 2012 21:36
- 40 of 101
How deceptive of you .... or maybe because am posting on the ESSAR thread, lol
- 27 Feb 2012 21:50
- 41 of 101
cut and run would be my advice
- 28 Feb 2012 08:19
- 42 of 101
Buy would be my advice ..... but not to many
- 28 Feb 2012 08:23
- 43 of 101
you'll get lacerated hands
- 28 Feb 2012 08:48
- 44 of 101
- 28 Feb 2012 09:44
- 45 of 101
India-based resources firm Essar Energy continued to slide, the biggest blue chip casualty of the day with a fall of 3.5p at 104.1p. Goldman Sachs today downgraded Essar from buy to neutral and slashed its target price from 190p to 134p.
- 28 Feb 2012 10:07
- 46 of 101
Deutsche summary note:
FY results reflect challenges on funding position, project execution, and fuel sourcing. We reduce our target price to 250p/share and retain a HOLD recommendation. Reflecting its tight position in terms of capital, Essar suggested it may not contribute in an Essar Oil capital raising and may reduce its ambition around power projects. Although there have been some positive signs on government attempts to resolve issues on fuel sourcing, there remains a high degree of uncertainty in the short-term.
Essar reported numbers slightly behind expectations with current price adjusted EBITDA of $624.8m (DB forecast $678m, last year $696.5m). Essar said that it may not participate in any Essar Oil capital raising, and may reduce its ambitions in power to reflect limited capital flexibility, and problems around finalizing approvals for some projects. Although these tough decisions should provide more headroom for the group, and make refinancing attempts for Essar Oil and Energy easier, we have updated our valuation to reflect potential value loss from these decisions.
- 03 Mar 2012 13:48
- 47 of 101
Capital concerns for Essar Energy
The share price of Essar Energy dipped once more after it was revealed that a faltering rupee and a legal reversal by India's Supreme Court had combined to scupper full-year headline figures for the India-focused refiner and power generator.
Essar's profits were hit by a net charge of $656m (£413m) after the Indian court ruled against it over a matter relating to deferred state sales tax. Essar is seeking a judicial review of the decision, but a provision of $1.14bn was included in the balance sheet to reflect the potential liability to the state of Gujarat. Essar also suffered from the rapid weakening in the rupee last year, prompting a $303m foreign-exchange loss.
Even if you exclude these factors, Essar's cash profits of $625m (£394m) still came up short of consensus estimates, and were 10 per cent down year on year. A positive note was provided by a one-fifth hike in Essar'’s Indian refining and marketing revenues, while the key Vadinar refinery expansion remains on target.
The Gujarat decision, together with a 60 per cent rise in underlying net debt to $5.7bn, has prompted Essar to review its capital commitments. It has already reassessed three power projects – Salaya 2 & 3 and Neptune 1 – while giving notice that it may not participate in a proposed capital raising by its subsidiary Essar Oil.
- 04 Mar 2012 08:50
- 48 of 101
Telegrapgh extract :
The average price target of the seven City analysts monitored by Bloomberg is 217p – almost double the current share price.
Should the regulatory issues in India, relating to forest clearing, be resolved and a new share issue at India-listed subsidiary Essar Oil, go well, then there is plenty of upside.
However, the Indian situation could drag on for some time, so it is one to avoid until the situation becomes clearer. However, bold investors may wish to have a small holding in the speculative part of their portfolio.
- 04 Mar 2012 09:57
- 49 of 101
not if you have any sense!
have you ever tried getting something even heard in the indian courts?
- 04 Mar 2012 11:42
- 50 of 101
Telegraph/Questor link for full article:
- 04 Mar 2012 15:35
- 51 of 101
Quester v seven City analysts ...... and the winner is ?
Cynic i think Essar would carry more clout in Indian courts then you would , lol
- 04 Mar 2012 16:52
- 52 of 101
all one can say about indian courts - which thankfully i have never had to explore - is that they will be (marginally) less corrupt that the pakistani courts
- 13 Mar 2012 10:49
- 53 of 101
Essar Oil has successfully commissioned the diesel hydrotreater unit 1 (DHDT-1) as part of the phase I expansion at its Vadinar refinery in India.
Essdar Energy - which own 87.1% of Essar Oil - says this leaves just three units remaining to be commissioned as part of the Vadinar expansion, which is firmly on track to be completed by the end of this month. The phase I expansion involves the addition of nine new units altogether.
These will expand the refinery's capacity to 18 million metric tonnes per annum (or 375,000 barrels per day) and will enhance the refinery's complexity to 11.8 from 6.1 currently. With this commissioning, Essar Oil's capital expenditure programme is beginning to taper downwards.
The refinery expansion will deliver a substantial pick-up in revenues and profitability of the company going forward.
- 19 Mar 2012 18:28
- 54 of 101
Woozle1 - 19 Mar'12 - 17:31 - 638 of 640
This is worth potentially a lot more than 150. It's forecast to do earnings next year of 25-30p, as three power stations will be substantially completed during H1 2012 and that 2013 will see the full year benefit of this capex. Management have said that the capex will be scaled back until they get approvals for the coal mining operations (and in the meantime they aren't paying duties on imported fuels) and which means the free cash yield on the shares should increase substantially. Applying a p/e of 15, once investors have bought back into the Indian power story, values the business between 375 and 450.
- 19 Mar 2012 21:00
- 55 of 101
so a realistic p/e of say 5 indicates an sp of 125/150 assuming full valuation
- 22 Mar 2012 07:47
- 56 of 101
Essar Energy (ESSR) announced that as part of its 1.8 billion dollar (1.1 billion pound) Phase I expansion plan it has commissioned its new sulphur recovery and vacuum gasoil hydrotreating units at its Vadinar refinery in India. The project will increase capacity at the plant to 375,000 barrels per day, and the only part left to complete is the delayed coker unit, which it expects to come online in a matter of days. Essar shares crept up 0.4p to 149.3p.
- 29 Mar 2012 12:23
- 57 of 101
Essar Energy has announced that Essar Oil has completed the $1.81bn expansion of its Vadinar refinery in India with the successful commissioning of the Delayed Coker Unit (DCU), the final unit to be completed.
Vadinar, in Gujarat state, is now India's second largest single-location refinery, with an annual capacity of 18 million metric tonnes per year (MMTPA), or 375,000 barrels per day (bpd), up from 14.7MMTPA/300,000 bpd previously. The refinery also now has a complexity of 11.8, up from 6.1 previously, which makes it among the world's most complex refineries.
The capacity expansion and complexity enhancement gives the Vadinar refinery the capability to process a much greater proportion of lower cost heavy and ultra heavy crude oils. The proportion of ultra heavy crude, previously around 20% of the total, will go up to 60% and the combined share of heavy and ultra heavy crude will go up to 80%.
The company has already entered into long-term crude sourcing contracts with global crude suppliers, including several national oil companies from Latin America.
Essar Oil is targeting export markets such as Australia, New Zealand and north-west Europe, in addition to other countries in the Indian subcontinent. However Essar Oil will continue to market a majority of its products in the domestic market.
Prashant Ruia, interim chairman of Essar Energy, said: "We are delighted to announce the completion of the refinery expansion programme. This expansion will greatly improve our product offering, margins and competitiveness. Our capital expenditure programme is now nearing an end. We have invested close to $5bn to date in the refinery complex and our cost per complexity barrel is one of the lowest in the industry."
- 04 Apr 2012 08:08
- 58 of 101
April 4, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that commercial operations have now begun at the 600 megawatt (MW) unit 1 of its 1,200MW Salaya I power project.
Unit 2 at Salaya I, also of 600MW, has been synchronised with the transmission grid and is expected to begin commercial operations in the coming weeks.
The coal fired Salaya I project is located in Gujarat state and is being built at a total investment cost of $1.1 billion. Most of the power produced will be sold to the Gujarat state electricity utility, GUVNL, under a long term contract.
Salaya I is one of three power projects due to be commissioned by Essar Energy in 2012, the others being the 1,200MW Mahan I project and the 510MW Vadinar P2 project. Together these three projects will add 2,910MW to the existing capacity of 1,600MW and will take Essar Energy's total installed capacity to 4,510MW.
Naresh Nayyar, the chief executive officer of Essar Energy, said: "The commissioning of the first unit at Salaya is another major milestone for Essar Energy and we are also making good progress at our Mahan I and Vadinar phase 2 projects. These projects combined will add 2,910 megawatts to our generating capacity and will improve our revenues and profitability."
- 11 Apr 2012 08:42
- 59 of 101
Sold some of my CEY and bought more ESSR , can't find any new's why ESSR has moved up this morning when Asian market's are down.
- 26 Apr 2012 14:40
- 60 of 101
Essar Energy subsidiary Essar Oil Ltd has renewed a major product sale and purchase agreement with Bharat Petroleum Corporation.
The renewed four-year agreement, running up to 2016, is for the supply of diesel, petrol, kerosene and aviation turbine fuel to BPCL from Essar Oil's Vadinar refinery.
It also entitles Essar Oil to purchase products from BPCL and gives the two companies the option of sharing each other's distribution infrastructure. Essar Oil chief executive, marketing, S Thangapandian, said: "We are delighted to further cement our long-term relationship with BPCL.
"Essar Oil has emerged as the biggest supplier for fuels for BPCL. With our expanded capacity coming on stream, we are fully geared to serve the growing demands of high quality fuel for the nation."
- 26 Apr 2012 18:33
- 61 of 101
Theres one for you Harry, get reading now and you might be finished by opening bell tomorrow. Long one. lol
- 26 Apr 2012 18:42
- 62 of 101
- 26 Apr 2012 18:43
- 63 of 101
You can tell Harry all about it then aldwickk .lol
- 30 Apr 2012 11:35
- 64 of 101
Bouncing back nicely on not a great day ..
- 14 May 2012 09:21
- 65 of 101
Essar Oil's revenues rose by 19% to Rs63,340crore in the year to the end of March.
But earnings before interest, tax, depreciation and amortisation fell 24% to Rs2,106crore.
This was mainly due to the sales tax incentive not being available in the fourth quarter and lower throughput due to planned shutdown.
- 14 May 2012 10:21
- 66 of 101
Am very bullish that this share will recover. ps What does amortisation mean ?
- 14 May 2012 10:57
- 67 of 101
"....to reduce a debt by paying small regular amounts"
(e.g. The value of the machinery is amortized over its estimated useful life.)
- 30 May 2012 15:14
- 68 of 101
This just went crazy on a bad day ,anyone know why the sudden bounce ?
- 30 May 2012 16:26
- 69 of 101
HERE WE GO ........
Essar Energy notes media reports following Indian ministerial coal block meeting
May 30, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that it has noted media reports published following a meeting of the Government of India's Group of Ministers on coal.
The reports indicate that Essar Energy's coal block at Mahan in Madhya Pradesh state is among those to have been provisionally approved by the Group of Ministers for Stage 1 Forest Clearance. This would be an in principle approval, subject to the satisfaction of conditions, to enter and clear the coal block areas.
However, our understanding is that the final decision will be taken by the Indian Cabinet.
Essar Energy is yet to receive any official notification from the Government of India following the meeting of the Group of Ministers. Essar Energy will update investors in due course if and when official notification is received.
The Mahan coal block will supply fuel to the nearby 1,200 megawatt Mahan I power project, which is due to be commissioned over the next few months.
- 31 May 2012 15:35
- 70 of 101
MARKET REPORT: Essar sparkles amid the gloom
By Geoff Foster
PUBLISHED: 22:30, 30 May 2012 | UPDATED: 22:30, 30 May 2012
Essar Energy shone like a beacon amidst the eurozone doom and gloom.
Shares of the India-focused refiner and power generator were chased up to 151.3p before closing 25.5p or 22 per cent higher at 141.8p on revived gossip that billionaire 76 per cent shareholders the Ruia brothers have finally lost patience with the City’s low valuation of the group and are now drawing up plans to take it back private.
JP Morgan Cazenove and Deutsche Bank helped float Essar at 420p in 2010 and after flirting with the £6 level, the stock has been persistently sold on concerns about repeated delays to its development plans.
Gossip: The Ruia brothers could be drawing up plans to take Essar back private
It was the worst performing Footsie stock of 2011 with a dramatic decline of 70pc and in March this year lost its position in the elite Footsie index.
Earlier this month Essar refinanced a $450million bridging loan that was due for repayment in December 2012. That helped calm nerves in some quarters but dealers remain of the opinion that either a Ruia brothers buy-back proposal or a possible bid from Royal Dutch Shell or ExxonMobil is the only way the shares could trade back near the flotation price.
Read more: http://www.thisismoney.co.uk/money/markets/article-2152344/MARKET-REPORT-Essar-sparkles-amid-gloom.html#ixzz1wSSRuwXm
- 31 May 2012 17:40
- 71 of 101
What would that mean for share holders a cash offer ?
- 01 Jun 2012 08:34
- 72 of 101
Yes, as the company would no longer trade on the LSE, or be transferring to any other exchange. The problem is that they would be unlikley, imo, to offer shareholders the float price of 420p, so it would be a loss making deal for many.
- 01 Jun 2012 08:58
- 73 of 101
and buying on t/o rumour a bad idea too
- 06 Jun 2012 09:41
- 74 of 101
Essar Energy subsidiary Essar Oil has completed its optimisation project, which has taken the capacity of its Vadinar refinery in Gujarat to 405,000 barrels per day.
The project has been completed four months ahead of schedule.
The company now accounts for about 10 per cent of India's total refining capacity.
Essar Oil says it has completed the refinery at a low capital cost of US$12,746 per barrel, which is around half the global average.
Operating costs of US$3 per barrel are also amongst the lowest globally.
- 06 Jun 2012 09:46
- 75 of 101
though INR seems to have recovered its poise a bit, i really cannot get excited about this stock, not least because the market has clearly lost confidence in the company ..... from a chart point of view, note that sp is trading in a very narrow range between 25 an 50 dma, and struggles badly to break north
- 06 Jun 2012 10:00
- 76 of 101
I agree. Very disappointing from the floatation. Have so far resisted any temptation to invest.
- 08 Jun 2012 13:14
- 77 of 101
Essar Energy receives final approval for Indonesian coal block
June 8, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that it has received final 'Pinjam Pakai' forest approval for its Aries coal mine in Indonesia. This is the final approval needed ahead of commencement of mine development activities.
Essar Energy acquired a 100% interest in the Aries coal mine in April 2010 for US$118 million. The mining area comprises approximately 5,000 hectares located in the West Kutai region of East Kalimantan. A Joint Ore Reserves Committee (JORC) compliant resource assessment estimates that the block contains approximately 64 million tonnes of mineable reserves with an annual potential production of 4 million tonnes of coal with an average gross calorific value of 5,400 to 5,500 Kcal/kg. This is sufficient to provide a dedicated fuel supply to the Salaya I, 1,200 MW coal-fired power plant located in Gujarat, India.
The Company has already commenced the construction of supporting road and port infrastructure and it is expected that first coal will be available within 9-12 months of today's announcement.
Until coal from the Aries coal mine becomes available, fuel for the Salaya I power project is being supplied under a fixed price coal contract with Essar Shipping and Logistics Limited, Cyprus. Unit 1 of Salaya I (600 MW), has already entered commercial operations, and unit 2 (also 600MW) is near to completion
- 15 Jun 2012 19:44
- 78 of 101
India focused Essar Energy (ESSR) has begun operations at unit 2 of the Salaya I power project, which has a power capacity of 600 megawatts. The news follows on from the commissioning of the 600 megawatt Salaya I unit 1 in April, and brings the energy company's total capacity to 2.8 gigawatts. The power plant cost 1.1 billion dollars (0.7 billion pounds) and is the first of three projects scheduled for completion in 2012 which are expected to raise the firm's capacity to 4.51 gigawatts. Essar shares rose by 7.8p to 119.5p.
- 25 Jun 2012 09:48
- 79 of 101
India-focused energy firm Essar Energy posts a pre-tax loss of $1,147.7m for the 15 months to the end of March.
This compares with a profit of $365,5m in the year to the end of December 2010.
The group said the latest results included negative impact of exceptional items totaling $1.28bn.
Chief executive Naresh Nayyar said: "We are now very much an operational energy business, with many construction projects completed and our capex investment programme having peaked.
"The expansion of our Vadinar refinery has been very successful, putting the plant into a league with the best in the world where it can produce high value fuels from lower cost, ultra heavy crudes.
"Coupled with our low cost base, this will permit a step change in margins. We are also making good headway at our Stanlow refinery with a number of initiatives to improve margins by at least US$2 per barrel over the next 18 months."
"In our power business we have commissioned 1,580MW of capacity since January 2011 and expect to commission a further 3,900MW in the next 24 months.
"We have been encouraged by the provisional forest clearance on the Mahan coal block which moves us further forward in developing the low cost generation assets which India badly needs.
"However, significant further progress is still required in a number of areas and we will be continuing our dialogue with both state and central government to try and ensure this momentum is not lost."
- 02 Jul 2012 07:57
- 80 of 101
Essar Energy sells stake in Vietnam gas block to ENI
2 July 2012: Essar Energy plc today announced that its subsidiary Essar Exploration & Production Limited has agreed to sell a 50 per cent stake in Vietnam's offshore gas exploration block 114 to ENI International B.V.
The reduction in Essar Energy's stake in block 114, which was previously 100 per cent, is in line with the strategy for its exploration and production business of introducing strategic partners to help manage risk and of focusing on the development of its core assets.
Essar Energy acquired the 100 per cent stake in block 114 in 2007 and a production sharing contract with the Vietnam Government became effective in 2010. Further investment is required to establish gas reserves in the block and no gas is being produced at present. Under the terms of the transaction, ENI is also assuming operator status for the block.
The transaction is subject to agreement from the Vietnam Government.
- 17 Jul 2012 11:25
- 81 of 101
Essar Oil notes Supreme Court order regarding sales tax petition
July 17 2012: Essar Energy plc [LSE: ESSR], today announced that its subsidiary Essar Oil has today been directed by the Supreme Court of India to pay Rs.10 billion (c.US$182 million) to the Government of Gujarat by July 30 in relation to its deferred sales tax liability.
The Court also today ruled that once the Rs.10 billion has been paid, any other coercive steps being taken by the Government of Gujarat to force immediate payment of the remaining principal amount owed, of Rs.51.69 billion (c.US$939 million) would be stayed.
Essar Oil is seeking guidance from the Supreme Court on a repayment schedule and the waiver of interest in relation to the deferred sales tax liability of Rs.61.69 billion (c.US$1.12 billion). Essar Oil had offered to pay the Rs.10 billion (US$182 million) sum as part of its submission to the Supreme Court, which is due to hear Essar Oil's petition on July 31 2012.
As previously announced, Essar Oil is also in advanced discussions with Indian lenders to put in place a Rs.50 billion (c.US$909 million) loan facility as a contingency measure for use in the event that the sales tax liability becomes payable immediately or that Essar Oil is not able to negotiate a satisfactory repayment schedule. This facility is expected to be finalised shortly.
- 23 Jul 2012 10:33
- 82 of 101
Essar Oil secures loan to repay deferred sales tax liability
Essar Energy subsidiary Essar Oil has secured a new credit facility with its Indian banks of up to Rs.50bn to meet the deferred sales tax liability of Rs.61.69bn owed to the Gujarat government.
Essar Oil continues to pursue the matter of a schedule for repayment of the sales tax liability both by legal means and with the government of Gujarat.
Essar Oil is confident that with this Rs.50bn facility in place it will be in a position to meet its entire repayment obligations.
At 9:48am: (LON:ESSR) share price was -0.55p at 112.45p
Story provided by StockMarketWire.com
- 25 Jul 2012 08:09
- 83 of 101
Essar Energy agrees new oil and product inventory arrangements for Stanlow refinery
July 25, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that its subsidiary Essar Oil UK has entered into new arrangements with Barclays Bank plc covering the supply of crude oil to its Stanlow refinery in the UK.
Under the new arrangements, Barclays will hold the inventories of crude oil and petroleum products at Stanlow and will supply crude to the refinery in line with its requirements.
The new arrangements allow Essar Oil UK to repay its existing working capital revolving credit facility, provided by 13 banks. In addition, they allow Essar Oil UK to reduce its costs by reducing its crude oil inventory holdings and also permit greater operational flexibility. The customer relationships and product sale processes will remain with Essar Oil UK. These arrangements with Barclays are for three years and take effect immediately.
- 31 Jul 2012 11:19
- 84 of 101
Essar Energy subsidiary Essar Oil has made an initial payment of Rs.10bn to the Gujarat government in respect of the deferred sales tax liability from the Vadinar oil refinery of Rs.61.69bn.
Essar Oil continues to pursue the matter of a schedule for repayment of the overall sales tax liability both by legal means and with the Government of Gujarat.
Essar Oil announced on 23 July that it has secured a new credit facility with its Indian banks of up to Rs.50bn to meet the deferred sales tax liability as required.
- 13 Sep 2012 16:12
- 85 of 101
Supreme Court decides on sales tax repayment schedule and interest due
September 13, 2012:
Essar Energy plc [LSE: ESSR], the India-focused integrated energy company, today announced that in respect of its subsidiary Essar Oil, the Honourable Supreme Court of India has today passed a judgement in the Gujarat sales tax case.
The judgement directs Essar Oil to repay the sales tax balance owed in instalments spread over two years. This balance of Rs.51.65 billion (c.US$939 million) is now payable in eight quarterly instalments beginning on 2 January 2013.
A demand by the Gujarat Government for approximately Rs.18 billion (c.US$327 million) in respect of interest for the period up to 17 January 2012, has been dismissed by the Hon Supreme Court.
In respect of interest for the period subsequent to 17 January 2012, the Supreme Court directed Essar Oil to pay at a rate of only 10% per year, as against 18% per year demanded by the Government of Gujarat.
The Supreme Court judgement brings to an end the deferred sales tax repayment issue in respect of Essar Oil.
- 04 Apr 2013 15:57
- 86 of 101
Todays news about refinacing the Rupee dept in to Dollar is good for investors.
At least it means the books have been fully checked over and approved.
Some news about the Raniganj gas field should move the SP up.
Put on your watch list
- 11 Apr 2013 16:47
- 87 of 101
- 11 Apr 2013 16:53
- 88 of 101
Looks like some of the Indian interests are not so keen on being so far in chinese pockets. Market forces v politics.
- 03 May 2013 08:41
- 89 of 101
Essar Seeks Permission to Explore For Shale Gas In Cambay Pre-NELP Block Under Existing PSC.
The Production Sharing Contract for the pre-NELP block CB-ON/3 which Essar signed with the government of India permits exploration in ‘Crude Oil & Natural Gas existing in their natural conditions’. Thus, this definition per se includes the Shale Gas/Oil which is ‘Crude Oil & Natural gas’
- 10 May 2013 14:53
- 90 of 101
- 16 May 2013 12:01
- 91 of 101
- 21 May 2013 08:58
- 92 of 101
This news on Essar from the India times. Moving their debt to dollars is a step change to making better margins.
MUMBAI: The Essar group, owned by billionaire brothers Shashi and Ravi Ruia, will sign agreements with a leading Chinese bank and its largest oil and gas producer and distributor, deepening the BPO to steel conglomerate's engagement with the world second largest economy.
During Chinese Premier Li Keqiang's state visit to India -- his first overseas since taking office in March - Essar Group flagships Essar Oil and its London listed parent Essar Energy Plc will enter into a multi-level financial agreement with China Development Bank (CDB), the world's biggest policy bank and PetroChina Company, the oil and gas producer and distributor, said multiple sources aware of the plans. This, according to some of the sources, could even be a precursor to a deeper relationship between the two sides, possibly culminating in an equity deal involving Essar's mega 20 million tonnes per year (MTPA) coastal refinery at Vadinar, Gujarat.
On Tuesday, Essar Energy and its locally listed refining subsidiary Essar Oil will sign an agreement with CDB to raise $1 billion by way of external commercial borrowings (ECBs) from the Chinese banking system. In return, PetroChina will sign a long-term 'off take' agreement with Essar for 7 to 10 years for a fixed quantum of products linked to the loan amount.
"Typically these off take arrangements or coverage ratios in industry parlance are two to three times the loan amount. Such trades are quite common for global commodity traders like Glencore or even a premier political and policy bank like the CDB," said a London- based corporate finance banker, specializing in energy trades who is aware of the upcoming transaction. "The price discovery mechanism is benchmarked to prevailing international prices or a pre-agreed pricing formula," he added.
Responding to a detailed questionnaire, an Essar Oil spokesperson said: "As part of our initiative to dollarize our debt, we have been in discussion with several international banks, including Chinese banks. CDB is part of that conversation. After our expansion, we have been sourcing a significant portion of our crude from Latin America with a view to meet our increased requirement of ultra heavy crudes. PetroChina is a strong player in this region and will thus continue to be an important trade counter party for us."
Mails sent to CDB and PetroChina did not get any response. However, CDB's new Chairman Hu Huaibang is expected to attend Tuesday's deal signing in Mumbai along with the CEO of PetroChina International - the group's arm for global business and energy trading.
- 17 Jul 2013 10:50
- 93 of 101
Positive news continues for Essar
Essar Energy announces US$125 million bond issue in power business.
Essar Power was assigned a credit rating of A+ by ratings agency Credit Analysis and Research Ltd (CARE), of Mumbai, in October 2012 in respect of the proposed Rs.50 billion bond issue.
- 23 Jul 2013 08:31
- 94 of 101
Essar Energy on lookout for partners for oil & gas assets By Vikas Srivastav Jul 16 2013
Essar Energy, the holding company of Essar Oil in India, plans to get equity partners in some of their oil and gas assets in India and abroad on the lines of a Mumbai offshore block where Noble Energy of US holds 50 per cent interest.
Iftikhar Nasir, CEO, E&P of London-listed Essar Energy, told Financial Chronicle, “At the moment, we have a partnership with Noble Energy for our Mumbai offshore block and we are looking for partnership in other blocks as well as we develop other opportunities. On case-by-case basis we would decide on the amount of equity to be shared with the partners. However, the hike in gas price would give us the opportunity to look at it positively.” Nasir declined to specify which block he would be looking to farm out in near future.
In an oil and gas block there always remains an option to share the risk after a certain level of development by bringing in new partners. “It is a very fluid arrangement within the exploration and production arena to farm in or to farm out. We are looking at this option even for our foreign blocks,” he said.
Essar Group together have global portfolio of onshore and offshore oil and gas blocks with about 35,000 sq km to explore.
Essar Oil, which looks after the India focused operations, has reserve potential of around 1.7 billion barrels of oil equivalent across eight oil and gas blocks in India. This includes around 10 tcf of gas from the 5 coal bed methane blocks (CBMs). Besides the company has two offshore assets: one is offshore Mumbai block and the other is Ratna & R Series block. Apart from offshore the company has two onshore blocks in Mehsana, Guajarat and an onshore gas block in Assam. Of all these blocks the company has only one partner in the offshore Mumbai block. It would look at partnership in the remaining blocks.
Essar Energy that takes care of the international blocks has exploration and production resources of 2.1 billion barrels of oil equivalent. This includes Vietnam, Madagascar, Nigeria and Indonesia. Of these Essar has got partners only for Vietnam that is Eni. It will look at partners at the remainder of the blocks in Indonesia, Nigeria and Madagascar.
Essar is also planning to enter into the shale gas exploration business and is awaiting the shale gas policy that it expects to come in next six months time.
- 12 Aug 2013 08:47
- 95 of 101
- 22 Aug 2013 14:39
- 96 of 101
Essar Energy: Nomura lowers target price from 180p to 170p, while leaving its buy recommendation unaltered.
- 11 Sep 2013 20:37
- 97 of 101
I have a change of view on Essar and I think it due a drop from here. Today's close below 136.7 confirms yesterdays start of a correction.
- 16 Feb 2014 19:34
- 98 of 101
Interesting article on the front page of Sunday Times Business today ,sorry can't get the online version.
- 16 Feb 2014 19:41
- 99 of 101
EDIT here it is .........
The Sunday Times
Essar takeover a blow to City credibility
Last updated February 16 2014
Indian billionaires line up Kremlin bank to back cheap offer for power giant, leaving London investors out of pocket
INVESTORS will this week receive another mauling from a disastrous foreign float when a billionaire Indian family offers to buy back its company on the cheap.
The Ruias, one of India’s most prominent business dynasties, are this weekend putting the final touches to a takeover bid for Essar Energy, the power company they floated in 2010. It is thought the deal will be pitched at no more than 75p a share, a fraction of the 420p paid by investors who bought in four years ago.
The Essar collapse is another blow to the reputation of the London market, which welcomed the listing of foreign oil, gas and mining companies but has seen some investors badly burnt.
Last year the founders of ENRC, a Kazakh miner beset by corruption allegations and boardroom bust-ups, took the company private at less than half the float price.
It is understood the offer from the Ruia family could come in the next few days. VTB, the Russian state-controlled bank, has been lined up to finance the bid. The company is expected to create an independent committee led by Philip Aiken, the senior independent director, to assess any offer.
Essar, which operates coalmines and power plants in India, employs 1,500 people at the Stanlow oil refinery in Cheshire.
Investors could have an even worse experience than with ENRC. The business admitted on Friday that Essar Global Fund, the family’s holding company, which has a 78% stake, was considering making an offer at a “modest premium” to Thursday’s closing price of 60p for the rest of the shares.
The family will need to raise about £500m to pay for the remaining stock and to buy out a convertible bond.
It is unclear whether the offer would be made in the form of a scheme of arrangement, which would require 75% approval from non-family shareholders, or a straightforward takeover bid requiring approval from only half of the shareholders. The Ruia family will be barred from voting its 78% stake, but investors are still likely to sell out.
When it floated, Essar was the latest in a series of foreign groups that enticed investors with the opportunity to tap into the soaring economic growth of the develop- ing world. It quickly joined the FTSE 100 roster of the biggest public companies.
Essar’s share price hit a high of 589p in 2010 but since then has slumped nearly 90%. The company dropped out of the FTSE 100 in 2012 as it battled with delays to plant openings and Indian regulators’ demands on mines. It was then hit with demands for hundreds of millions in back taxes.
Slower-than-expected growth in the Indian economy further hindered the company, and trading in the stock fell to a trickle as institutions shunned it.
The brothers Shashi and Ravi Ruia started the mother company as a shipping and construction operator in 1969 and transformed it over four decades into a conglomerate spanning telecoms, oil, ports and steel.
They employ 75,000 people. Shashi’s son Prashant is the chairman of Essar Energy.
Bankers at VTB and Barclays were this weekend working to hammer out the details of a bid. It is thought that JP Morgan is advising the company.
Essar declined to comment.
- 07 Mar 2014 08:57
- 100 of 101
From FT "India’s billionaire Ruia family are putting the final touches to an improved offer for Essar Energy as they push ahead with plans to take the company back into private ownership.
The Ruias, whose initial buyout bid of 70p per share was rejected by minority shareholders last week for undervaluing the company, are working with advisers including Barclays, Russia’s VTB Bank and Clifford Chance, the law firm, on a higher offer, according to sources familiar with the plans."
- 11 Jun 2014 10:41
- 101 of 101
June 10: delisted