The company has invested $ 600 million on its Stanlow refinery in the past six years and is in the process of investing another $ 250 million. “Our plan is to reconfigure our operations to align it in the way the market is changing. Our key business is transportation fuel which will reach its peak in the next 15 year, so we need to identify what to focus on next,” said S. Thangapandian, CEO, Essar Oil, UK.
He said that the investment would be “much bigger” than the investments that the company has made under its “Tiger Cub” project and will be finalised by December 2018.
Essar Oil UK said it continues to make good progress on its plans to invest $250 million in capex and maintenance at Stanlow in FY18 to ramp up throughput, improve yields and drive revenues. This major investment will increase annual throughput from 68 million to 75 million barrels.
The company was able to report a robust growth in net profit of $169 million (Rs 1,082.61 crore) in the first half of FY18 from $51 million (Rs 326.71 crore) in the same period a year ago, driven by high margin products even as throughput remained the same. The company reported a revenue of $2.7 billion (Rs 17,296.2 crore) in six months as against $ 2.3 billion (Rs 14,682.55 crore) in the previous year.
A focus on margin booster initiatives and cost efficiencies has seen a significant improvement in the operating and financial performance during this time, the company said.
It said it has already set up 46 fuel retail stations in the UK and aims to take it up to 400 in the next five years.
Since its inception, Altico has deployed more than Rs 8,500 crore across over 100 projects covering more than 100 million sq ft area in seven cities. Altico Capital recently reported a 48% on-year jump in net profit at Rs 173 crore for the half-year ended September 2017. Revenue for the period also increased 80% to Rs 429 crore.