Essar Energy

Essar Energy (-7.28% à 440.4 pence) a annoncé un bénéfice avant impôts pour l’année 2010, en hausse de 28% par rapport à l’année dernière, à 365.5 millions de dollars et un EBITDA en hausse de 8% à 718.9 millions de dollars. Le bénéfice après impôt ressort quant à lui en hausse de 20% à 248.3 millions d’euros. Le titre a terminé à un nouveau plus bas relatif sur 3 mois face au FTSE 100.

Genesis and evolution

The Essar Group was founded in 1969, by brothers Mr Shashi Ruia and Mr Ravi Ruia. The 21st century for the Group has been all about consolidating and growing the businesses

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The Ruia family’s origins are in Rajasthan. Sometime in the 19th century, they moved to Mumbai and set up their own business. In 1956, Mr Nandkishore Ruia, father of Mr Shashi Ruia and Mr Ravi Ruia, moved to Chennai, capital of the south Indian state of Tamil Nadu, to begin independent business activities. He mentored his two sons in the intricacies of business. When Mr Nandkishore Ruia passed away in 1969, the brothers laid the foundation of the Group. The Essar Group began its operations with the construction of an outer breakwater in Chennai port. It quickly moved to capitalize on every emerging business opportunity, becoming India’s first private company to buy a tanker in 1976. The Group also invested in a diverse shipping fleet and oilrigs, when the Government of India opened up the shipping and drilling businesses to private players in the 1980s. Then, in the 1990s, Essar began its steelmaking business by setting up India’s first sponge iron plant in Hazira, a coastal town in the western Indian state of Gujarat. The Group went on to build a pellet plant in Visakhapatnam, and eventually a fully integrated steel plant in Hazira. Through the 1990s, with the gradual liberalization of the Indian economy, Essar seized every opportunity that came its way. It diversified its shipping fleet, started oil & gas exploration and production, laid the foundation of its oil refinery at Vadinar, Gujarat, and set up a power plant near the steel complex in Hazira. The construction business helped the Group build most of its business assets. Essar also entered the GSM telephony business, establishing India’s first mobile phone service in Delhi (branded Essar Cellphone) with Swiss PTT as the joint venture partner. The 21st century for the Essar Group has been all about consolidating and growing the businesses, with mergers and acquisitions, new revenue streams and strategic geographical expansion.

The Essar spirit

The Essar Group has been foraying into new international markets, and exploring new business areas in a bid to keep its entrepreneurial spirit alive, and to keep growing

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Our vision We will be a respected global entrepreneur, through the power of positive action. Our mission We are committed to innovative growth, through our personal passion, reinforced by a professional mindset, creating value for all those we touch. Our spirit The Essar Group has changed significantly in recent years and continues to evolve, to keep pace with the changing times. We have undertaken a sustainable journey of transformation by foraying into new international markets, and exploring new business areas in a bid to keep our entrepreneurial spirit alive, and to continue growing. To mark the phenomenal growth witnessed over the last four decades, the Group recently unveiled its new brand identity marking a very important milestone in its journey and reflecting a new beginning for the Group. A new brand identity reinforces all the positives to fulfill our vision to be a global entrepreneur through the power of positive action. We aim to have a robust value system comprising positive attitude, positive action and positive achievement. We endeavor to create enduring value for customers and stakeholders in core manufacturing and service businesses, through world-class operating standards, state-of-the-art technology and the ‘positive attitude’ of our people. Privately owned and professionally managed, the Group is judiciously invested in the commodity, annuity and services businesses. Forward and backward integration, the use of state-of-the-art technology, in-house research and innovation have made Essar Global a force to reckon with in each of its businesses. Finally, the Essar way is all about keeping its entrepreneurial spirit alive, and to keep growing with a passion to progress and the power to succeed with a renewed strength of purpose and commitment.

Oil and Gas

Essar Oil operates a fully integrated oil company of international size and scale

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Essar Oil's assets include developmental rights in proven exploration blocks, a 14 MTPA refinery on the west coast of India and over 1,376 Essar-branded oil retail outlets across India. Plans are under way to increase its exploration acreage in various parts of the globe, expand its refinery capacity to 18 MTPA, and open 1,700 outlets countrywide by March 2011. Our global portfolio of onshore and offshore oil and gas blocks, with about 45,000 sq km is available for exploration. We have over 300,000 bpsd (barrels per stream day) of global crude-refining capacity that is being expanded to 375,000 bpsd, with the refining capacity being enhanced by almost double. We have a controlling stake of 50 percent stake in Kenya Petroleum Refineries Ltd’s 80,000-bpsd refinery; the remaining 50 percent is owned by the Kenyan government. Global exploration portfolio We are aggressively growing our presence in the Exploration and Production business. We have 2C contingent resources of 148 mmboe (million barrels of oil equivalent), and best estimate prospective resources of 1,012 mmboe. Largest CBM player in India We have an acreage of over 2,700 sq. km in India, which gives us the largest CBM acreage in the country. Our CBM block in Raniganj is close to commercial production and has signed customer contracts with several companies. Large refining capacity We have a 14 MTPA refinery at Vadinar in Gujarat, which started commercial production on May 1, 2008. It has been built with state-of-the-art technology and has the capability to produce petrol and diesel suitable for use in India as well as advanced international markets. It will also produce LPG, Naphtha, light diesel oil, Aviation Turbine Fuel (ATF) and kerosene. The refinery has been designed to handle a diverse range of crude — from sweet to sour and light to heavy. It is supported by an end-to-end infrastructure setup including SBM (Single Buoy Mooring), crude oil tankage, water intake facilities, a captive power plant (currently 500 MW, being expanded to 1,200 MW), product jetty and dispatch facilities by both rail and road. We have made huge investments in installing the most advanced equipment and units in our refinery. At 97 m, the refinery’s crude column is Asia’s tallest and capable of enhanced separation of petroleum products. The DHDS reactor is also the largest in its category capable of producing Euro V compliant diesel. The refinery is, in fact, unique in its complexity and its ability to produce value-added products. All units have operated many notches over their rated capacities with the crude unit achieving over 14 million tonnes (300,000 bpsd) in the very first year of operation. This is a first for any refinery in India. We are expanding the refinery capacity to 18 million tonnes with an increase in its complexity from 6.1 currently to 11.8 on the Nelson index. As part of a continuous optimization programme, the company has decided to further expand the refinery’s capacity by 2 million tonnes to 20 million tonnes (405,000 bpsd) by September 2012. If market conditions are favourable, the capacity will be enhanced further to 38 million tonnes, with a complexity of 12.8. Until date, our Vadinar refinery has successfully processed more than 32 varieties of crudefrom across world, including some of the “toughest crudes”. Plans are afoot to expand the refinery capacity threefold in the next few years. Post expansion, the Vadinar refinery will beamong the five largest single-location refineries in the world. Retail and Marketing Essar Oil serves retail customers through a modern, countrywide network of over 1,376 retail outlets, with plans to increase the numbers to 1,700 retail outlets by March 2011. We were the first private Indian company to enter petro retailing, looking beyond urban markets and reaching out to consumers in India’s heartland. We offer a wide range of products to bulk customers in the industrial and transport sectors. EOL has product offtake and infrastructure sharing agreements with oil PSUs, namely Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL) and Indian Oil Corporation (IOCL). We have received approvals to supply Aviation Turbine Fuel (ATF) to the Indian Armed Forces.