Mumbai, February 13, 2023: Essar Oil and Gas Exploration and Production Ltd (EOGEPL), a pioneer and a leader in unconventional hydrocarbon space, today announced their results for the quarter ending December 31, 2022.
The company has reported its highest-ever quarterly revenue of ₹219 crores in Q3 FY23, with 54% YoY growth. In the quarter ending December 31, 2022, EOGEPL’s EBIDTA grew by ~100% on a YoY basis to ₹171 crores, and its PAT increased by 273% as compared to the same period last year to ₹97 crore.
In the 9M FY23 period, the company posted record revenue of ₹696 crores growing at over 113% on a YoY basis. Its EBIDTA of ₹552 crore is a 228% increase as compared to the same period last year. The company also posted its highest-ever PAT of ₹284 crore as compared to a loss of – ₹11 crores recorded in last year’s Q3. Essar achieved an EBIDTA margin of 80%, witnessing an improvement of 27% due to a reduction in operating cost and internal consumption in 9MFY23.
Commenting on the performance, Mr. Prashant Ruia, Director – of 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 contributing to India’s vision of becoming a gas-based economy in the next decade by ramping up its gas production”
Mr. 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%. The company continues to focus on key priorities of field upgradation and a 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”
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 the Urja Ganga Pipeline with availability of 100% gas offtake further buoyed by continued tailwinds in global gas prices.
EOGEPL is currently operating ~350 wells in the block and has taken up a systematic approach of good revival through the adaptation of world-class technology and stimulation techniques including re-francs 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 3 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 the 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 players in the region.