Essar Oil gains 3 percent on completion of Vadinar refinery expansion

Mumbai: Shares of Essar Oil surged more than 3 percent in morning trade after the company announced the completion of Vadinar refinery expansion, that will boost its turnover by 30-35 percent and improve margins.

The company yesterday said that it has completed the Rs 8,300-crore expansion of the Vadinar oil refinery in Gujarat. The capacity expansion and complexity enhancement gives the refinery the capability to process much heavier crude, which is cheaper.

[caption id=“attachment_260932” align=“alignleft” width=“380” caption=“Vadinar Refinery is now India’s second largest single- location refinery, with an annual capacity of 18 million tonnes. Reuters”]  [/caption]

Reacting to the news, the shares of the company opened on a bullish note and then rallied ahead as much as 3.32 percent over its previous closing price to touch an early high of Rs 54.40 on the BSE.

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Similar trend was witnessed on the National Stock Exchange as well, where the stock after opened at Rs 53.40, and soared to a high of Rs 54.40. Later it was quoting at Rs 53.95, up 2.18 percent over its last close, at 1131 hours.

Vadinar Refinery is now India’s second largest single- location refinery, with an annual capacity of 18 million tonnes (up from 14 million tons currently) and a complexity of 11.8, which also makes it among the world’s most complex refineries.

The company further said it is targeting newer markets like Australia, New Zealand and north-west Europe, in addition to countries in the Indian subcontinent for exporting high quality fuels.

PTI