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Essar Energy - India (ESSR)     

HARRYCAT - 23 Jul 2010 14:56

Chart.aspx?Provider=EODIntra&Code=ESSR&S

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

http://www.essarenergy.com/

aldwickk - 15 Feb 2012 14:18 - 32 of 101

Bought back in @128.6

HARRYCAT - 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.

HARRYCAT - 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."

aldwickk - 16 Feb 2012 15:23 - 35 of 101

Now they tell me , Bought back in @128.6 yesterday

HARRYCAT - 17 Feb 2012 14:47 - 36 of 101

StockMarketWire.com
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."

HARRYCAT - 27 Feb 2012 10:02 - 37 of 101

StockMarketWire.com
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."

aldwickk - 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.

cynic - 27 Feb 2012 20:02 - 39 of 101

does that plea mean that you hold these?

aldwickk - 27 Feb 2012 21:36 - 40 of 101

How deceptive of you .... or maybe because am posting on the ESSAR thread, lol

cynic - 27 Feb 2012 21:50 - 41 of 101

cut and run would be my advice

aldwickk - 28 Feb 2012 08:19 - 42 of 101

Buy would be my advice ..... but not to many

cynic - 28 Feb 2012 08:23 - 43 of 101

you'll get lacerated hands

aldwickk - 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.

HARRYCAT - 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.

hlyeo98 - 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.

aldwickk - 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.

cynic - 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?

midknight - 04 Mar 2012 11:42 - 50 of 101

Telegraph/Questor link for full article:



http://www.telegraph.co.uk/finance/markets/questor/9120860/Questor-share-tip-Essar-Energys-Indian-woes-may-drag-on.html

aldwickk - 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
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