Essar Oil & Gas Exploration & Production (EOGEPL) achieves highest fiscal revenue

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Mumbai, July 31, 2023: Essar Oil and Gas Exploration and Production Ltd (EOGEPL), one of the largest E&P companies in India and a leader in unconventional hydrocarbon space, today announced a record PAT of Rs 335 crores for the year ending Mar 31, 2023.

The company has reported its highest fiscal revenue of Rs 900 crs in FY23, projecting a growth of about 1.8 times compared to the previous year.The company’s PAT increased by 1.6 times, and EBIDTA grew over 205% on a YoY basis to approximately Rs 700 crores. The EBIDTA margin saw a significant improvement of around 3100 basis points, reaching 77%, due to reduced operating costs and internal consumption.

During the 4QFY23 period, the company posted PAT of Rs 83 crores. It achieved a revenue of Rs 190 crores, showing a growth of over 23% on a YoY basis. The EBIDTA also grew by over 150% YoY, reaching Rs 140 crores. Below is a snapshot on the performance for FY23:

Commenting on the performance, Mr. Pankaj Kalra, Chief Executive Officer, EOGEPL, said, “Our team is consistently beating its estimates and delivering strong operating performance year on year backed by ramp up in gas production, and by optimizing and reducing internal consumption significantly. The company remains committed to key priorities of field upgradation, bringing in new technologies enhancing production while optimizing cost.”

Mr. Prashant Ruia, Director – Essar Capital and EOGEPL said, “The company aims to participate in India’s mission of reducing carbon footprint and becoming a Gas Based Economy by the next decade. EOGEPL aims to provide industries in its vicinity with alternate clean fuel at economical prices by ramping up its gas production at the cheapest cost”.

Business Highlights:

EOGEPL plans to invest Rs 2,000 crore in the next 18 to 24 months for drilling 200 more wells. The company is currently contributing nearly 65% to the country’s total CBM production, which is likely to go up to 90% post drilling of the additional wells. The company strive to contribute 5% to India’s total gas production in next 5 years.

EOGEPL delivered a strong operational performance by doubling its gas production to over 0.84 million metric standard cubic meters per day (mmscmd) after the commissioning of Urja Ganga Pipeline with availability of 100% gas offtake further buoyed by continued tail winds in global gas prices.

EOGEPL is currently operating ~350 wells in the block and has taken up 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 company is currently contributing Rs 150 crore to the state exchequer annually which is likely to go up to Rs 300 crore once production of CBM from Raniganj is ramped up

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 drilling of new directional and horizontal wells, and expeditious development of the Deeper CBM Area of Raniganj block.

EOGEPL has partnered with M/s Sensia for digitalization and remote operations in oil and gas fields, aiming to enhance efficiency and streamline processes in the industry

EOGEPL announced investments in microbial ECBM technology to boost coal bed methane (CBM) production, aiming to leverage innovative solutions for increased efficiency and extraction in the energy sector

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 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 player in the region.