Essar Energy posts earnings drop, misses forecasts

Feb 27, 2012 |

Reuters

London

Tags:

Essar Energy

India-focused refiner and power generator Essar Energy said core earnings fell 10 per cent in 2011, falling short of analyst forecasts due to weaker refining margins and depreciation of the rupee in the second half of the year.

The company posted full-year earnings before interest, tax, depreciation and amortisation (EBITDA) of $624.8 million.

That compared with $696.5 million in 2010 and the $685 million average of 10 analysts' forecasts supplied by the company.

Essar Energy -- 77 per cent-owned by privately-held Indian conglomerate Essar Group -- is the majority shareholder in India-listed Essar Oil which is currently seeking a review of an Indian court ruling against it over a deferred payment of sales tax.

Shares in Essar, which are worth less than a third of the value of their listing price in 2010 and have fallen by 41 per cent in the last three months, closed at 126 pence on Friday, valuing the company at about 1.6 billion pounds.

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