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.

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.

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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