Essar Oil & Gas Exploration & Production achieves highest ever revenue and EBIDTA

Mumbai, Feb 13 (IANS) Essar Oil and Gas Exploration and Production Ltd (EOGEPL), a pioneer and leader in unconventional hydrocarbon space, on Monday announced its results for the quarter ending December 31, 2022.

The company has reported its highest ever quarterly revenue of Rs 219 crore in Q3 FY23, with 54 per cent YoY growth. In the quarter ending December 31, 2022, EOGEPL's EBIDTA grew by ~100 per cent on YoY basis to RS 171 crore, and its PAT (profit after tax) increased by 273 per cent as compared to the same period last year to Rs 97 crore.

In the nine-month FY23 period, the company posted record revenue of RS 696 crore growing at over 113 per cent on YoY basis. It's EBIDTA of RS 552 crore is a 228 per cent increase as compared to the same period last year. The company also posted its highest ever PAT of RS 284 crore as compared to a loss of Rs 11 crore recorded in last year's Q3. Essar achieved an EBIDTA margin of 80 per cent, witnessing an improvement of 27 per cent due to reduction in operating cost and internal consumption in 9M FY23.

Commenting on the performance, Prashant Ruia, Director, Essar Capital and EOGEPL, said, "Essar aims to participate in India's vision of reducing carbon footprint and provide industries with alternate clean fuel at economical prices. We are committed to contribute to India's vision of becoming a gas-based economy in the next decade by ramping up its gas production."

Pankaj Kalra, Chief Executive Officer, EOGEPL, said, "My team has done an excellent job in delivering strong operating performance with ramp up in gas production and reduction in internal consumption by ~12 per cent. The company continues to focus on key priorities of field upgradation and further reduction in internal consumption which will be acting as a holistic rationalisation of the cost while also adding to the company's top line."

Business Highlights

EOGEPL delivered a strong operational performance by doubling its coal bed methane (CBM) production to over 0.8 million metric standard cubic meters per day (mmscmd) after the commissioning of Urja Ganga Pipeline with availability of 100 per cent gas offtake further buoyed by continued tail winds in global gas prices.

EOGEPL is currently operating ~350 wells in the block and has taken up a systematic approach of well revival through adaptation of world class technology and stimulation techniques including re-fracs and close monitoring to enhance gas production from the existing wells.

EOGEPL maintains robust momentum to remain the leader in the unconventional space with a clear road map to double its CBM reserve base and increase production from the block to over three MMSCMD in the coming years.

The company has roped in globally renowned service providers and technical consultants to roll out a phased growth program to achieve these objectives. The program includes drilling of new directional and horizontal wells, and expeditious development of the Deeper CBM Area of Raniganj block.

The company is also working towards opening up new frontiers, one of them being Shale Gas exploration which will help the company consolidate its position as one of the largest Unconventional Hydrocarbon player in the region.

EOGEPL is pioneer and the largest unconventional hydrocarbon (UHC) player in India having a resource base of 4 TCF (Trillion Cubic Feet) in Coal Bed Methane (CBM) and 8 TCF of shale gas resources. EOGEPL has so far invested in excess of Rs 5,000 crore in the commercial development of the Raniganj CBM Block.