Essar Oil & Gas reports record profit, revenue in Q3

NEW DELHI: Essar Oil and Gas Exploration and Production Ltd (EOGEPL) on Monday reported record net profit and revenues for the third quarter ended December 31, 2022 after production doubled and company cut operating cost.

Net profit at Rs 97 crore in October-December was a massive 273 per cent higher than Rs 26 crore net profit in the same period a year back, the company said in a statement.

Revenue soared 54 per cent to Rs 219 crore while EBITDA almost doubled to Rs 171 crore.

Production of coal bed methane (or gas from coal seams) doubled to over 0.8 million standard cubic meters per day after commissioning of the Urja Ganga pipeline connecting its Raniganj assets to customers.

Also, elevated global gas prices was a tailwind, it said.

For the first nine months of current fiscal year, the company posted a net profit of Rs 284 crore on a revenue of Rs 696 crore. This compares with a loss of Rs 11 crore on a revenue of Rs 327 crore a year back.

EOGEPL produces over 0.8 mmscmd of gas from around 350 wells in the block.

It is taking ''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,'' the statement said.

''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 3 mmscmd in the coming years''.

The company has roped in globally renowned service providers and technical consultants to roll out a phased growth programme. The programme includes drilling of new directional and horizontal wells, and expeditious development of the deeper CBM area of Raniganj block.

It 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 players in the region.

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 the strong operating performance was attributable to the ramp-up in gas production and reduction in internal consumption by about 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,'' he said.