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

One of the largest E&P companies in India Essar Oil and Gas Exploration and Production Ltd (EOGEPL) announced a record PAT of INR 335 crores for year ending March 31 — highest fiscal revenue in FY23

NEW DELHI — 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, on Monday, announced a record PAT of INR 335 crores for the year ending March 31.

The company has reported its highest fiscal revenue of INR 900 crore 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 per cent on a YoY basis to approximately INR 700 crore. The EBITDA margin saw a significant improvement of around 3100 basis points, reaching 77 per cent, due to reduced operating costs and internal consumption.

During the 4QFY23 period, the company posted a PAT of INR 83 crore. It achieved a revenue of INR 190 crore, showing a growth of over 23 per cent on a YoY basis. The EBITDA also grew by over 150 per cent YoY, reaching INR 140 crore.

Commenting on the performance, 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.”

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”.

EOGEPL plans to invest INR 2,000 crore in the next 18 to 24 months for drilling 200 more wells. The company is currently contributing nearly 65 per cent to the country’s total CBM production, which is likely to go up to 90 per cent post the drilling of the additional wells. The company strive to contribute 5 per cent to India’s total gas production in the 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 the availability of 100 per cent gas offtake further buoyed by continued tailwinds in global gas prices.

EOGEPL is currently operating 350 wells in the block and has taken up a systematic approach to well revival through the 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 INR 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.

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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 the 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 roadmap 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 players in the region.