Essar Oil and Gas Exploration and Production Ltd (EOGEPL), a pioneer and industry leader in the unconventional hydrocarbon domain. With a 54% YoY increase, the business reported its biggest quarterly revenue ever in Q3 FY23 at Rs 219 crore. In the three months that ended December 31, 2022, EOGEPL's EBIDTA jumped by 100% YoY to Rs. 171 crore, while its PAT (profit after tax) increased by 273% compared to the same period in 2017.
The company reported record sales of RS 696 crore for the first nine months of FY23, up more than 13% year over year. Its EBIDTA of RS 552 crore is a 228% growth over the same period in 2017. Additionally, the business reported its highest-ever PAT of RS 284 crore, up from a loss of RS 11 crore in the third quarter of last year. Essar achieved an EBIDTA margin of 80%, which represents an improvement of 27% as a result of lower operating costs and internal consumption in the first nine months of FY23.
Director of Essar Capital and EOGEPL Prashant Ruia commented on the performance, saying, "Essar wants to contribute to India's goal of lowering its carbon footprint and give businesses affordable access to alternative clean fuel. We are dedicated to helping India achieve its goal of
transitioning to a gas-based economy within the next ten years by increasing gas output." Chief Executive Officer of EOGEPL, Pankaj Kalra, stated, "By ramping up gas production and reducing internal consumption by 12%, my team has done a fantastic job of generating outstanding operating performance. The company is keeping its attention on two critical priorities: field improvement and further internal consumption reduction, which will help to rationalise costs overall and boost the bottom line."
Business Highlights : After the commissioning of the Urja Ganga Pipeline and with 100% gas availability, EOGEPL demonstrated strong operational performance by doubling its coal bed methane (CBM) production to over 0.8 million metric standard cubic metres per day (mmscmd). This was further aided by the continuing downward trend in gas prices around the world. In order to increase gas production from the existing wells, EOGEPL, which is now running about 350 wells in the block, has adopted a systematic approach to well resurrection through adaption of top-notch technology and stimulation techniques, including re-fracs and close monitoring.
With a clear road plan to quadruple its CBM resource base and expand production from the block to over three MMSCMD in the upcoming years, EOGEPL maintains strong momentum to remain the market leader in the unconventional domain. To implement a staged expansion programme and accomplish these goals, the company has enlisted the help of internationally renowned service providers and technical experts. The programme calls for the rapid development of the Raniganj block's Deeper CBM Area as well as the drilling of new directional and horizontal wells.
The company is also seeking to expand into new areas. Shale gas exploration is one of those areas, and it will help the company solidify its position as one of the major players in the region's unconventional hydrocarbons. With a resource base of 4 TCF (Trillion Cubic Feet) in coal bed methane (CBM) and 8 TCF in shale gas resources, EOGEPL is a pioneer and the largest unconventional hydrocarbon (UHC) player in India. Over Rs 5,000 crore has already been invested by EOGEPL in the commercial development of the Raniganj CBM Block.
