Essar Oil (UK) has revealed it achieved its best monthly product sales for 18 months in December 2021 across both fuels and petrochemicals.
In a market update it said demand was now back to 95% of pre-Covid levels, and in addition, it is re-entering the Irish market having recently secured a contract to supply fuel, starting this month.
The continued strength in both demand and product margins in the market means that EOUK is now generating EBITDA at an annualised rate of approximately $300m, approaching the levels seen in the five years prior to the onset of the coronavirus pandemic.
EOUK also gave an update on financing following deals in May and September to provide liquidity worth $1.1bn, and said additional financing has been secured during last quarter of 2021.
Last year EOUK agreed payment deferments with HMRC, and it said it has successfully made all due payments in the three months to December 2021 and is on course to complete the balance in the quarter ending 31 March 2022.
Deepak Maheshwari, Essar chief executive officer, commented: “Over the last quarter, the company has been able to strengthen its financial performance due to improvements in the product market and delivery of reliable and stable operations at Stanlow. We have also closed the defined pension benefit scheme for future accruals, which will provide long-term security of competitiveness for the company. Going forward, we will invest in projects such as HyNet which will enable the country’s transition to a low carbon economy.”