Essar Energy PLC ESSR Essar Oil secures loan facility

  Essar Energy PLC (ESSR) - Essar Oil secures loan facility

RNS Number : 2320I
Essar Energy plc
23 July 2012
 



                                                                                                           

 

Essar Oil secures loan facility to repay deferred sales tax liability

July 23, 2012: Essar Energy plc [LSE: ESSR], the India-focused integrated
energy company, today announced that its subsidiary Essar Oil Ltd has secured
a new credit facility with its Indian banks of up to Rs.50 billion (c.US$900
million) to meet the deferred sales tax liability of Rs.61.69 billion
(c.US$1.12 billion) owed to the Government of Gujarat.

 

Essar Oil continues to pursue the matter of a schedule for repayment of the
sales tax liability both by legal means and with the Government of Gujarat.
Essar Oil is confident that with this Rs.50 billion facility in place it will
be in a position to meet its entire repayment obligations.

 

Lalit Gupta, managing director and chief executive officer of Essar Oil, said:
"The new loan facility will enable Essar Oil to meet its sales tax liability.
Our lenders have continued to be very supportive of the business, which
remains well placed given the demand for high value fuels both in India and
internationally."

 

As previously announced, the completion of the Vadinar refinery phase 1
expansion and the early completion of the additional optimisation project at
Vadinar complete the scheduled capex programme for the refinery.  With its
benchmark low operating costs and enhanced scale and complexity, Vadinar is
expected to deliver significantly enhanced margins and cash flow generation in
future.

 

 

 

 

For further information on Essar Energy, please visit www.essarenergy.com

For further information on the Essar Group, please visit www.essar.com

Alternatively, please contact:

 

Essar Energy

Mark Lidiard, Director of Investor Relations & Communications +44 20 7408 8714
or +44 7554 440421

Andrew Turpin, Head of Media Relations +44 20 7408 8702 or +44 7827 283659

 

Capital MS&L

Richard Campbell +44 20 7307 5334 or +44 7775 784 933

Nicholas Bastin +44 20 7255 5117 or +44 7931 500 066

 

About Essar Energy

Essar Energy (LSE:ESSR) is a world class, low-cost, integrated energy company
with an established track record.

Essar Energy, through its subsidiaries, owns one of India's largest private
power producers now with 2,800MW of installed capacity and projects under
construction to expand its capacity to 9,670MW.

Essar Energy, through its subsidiaries, owns one of India's fastest growing
private sector oil and gas companies with a diverse portfolio of exploration
and production assets. The Vadinar refinery, located in Gujarat, is India's
second largest private sector oil refinery with throughput capacity of 20
million metric tonnes per annum, or 405,000 barrels per day following the
completion in 2012 of expansion and optimisation projects.

 

About Essar Group

The Essar Group is a global conglomerate and a leading player in the sectors
of Steel, Energy (Oil & Gas and Power), Infrastructure (Ports, Projects &
Concessions) and Services (Shipping, Telecom, Realty and Business Process
Outsourcing). With operations in more than 25 countries across five
continents, the group employs 75,000 people and has revenues of over US$ 27
billion.

* * *

This announcement contains certain forward-looking statements, including
statements regarding Group's plans, objectives and performance. Such
statements relate to events and depend on circumstances that may occur in the
future and are subject to risks, uncertainties and assumptions. Although the
Group believes that the expectations reflected in such forward looking
statements are reasonable, there are a number of factors which could cause
actual results and developments to differ materially from those expressed or
implied by such forward looking statements, including, without limitation, the
enactment of legislation or regulation that may impose costs or restrict
activities; the re-negotiation of contracts or licences; fluctuations in
demand and pricing in the Oil and Gas, Power and Energy industries;
fluctuations in exchange controls; changes in government policy and taxations;
industrial disputes; war and terrorism. Further information on the significant
risks and uncertainties associated with the Group's business is set out in the
Prospectus published on 4 May 2010. These forward-looking statements speak
only as at the date of this document. The Group undertakes no obligation to
update any forward looking statements whether as a result of new information,
future events or otherwise, except to the extent legally required.

These statements (and all other forward-looking statements contained in this
document) are not guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond the Group's control,
are difficult to predict and could cause actual results to differ materially
from those expressed or implied or forecast in the forward-looking statements.

This announcement does not constitute, or form part of, an offer or any
solicitation of an offer for securities in any jurisdiction, or an invitation
or inducement to invest in the Group or any other entity and should not be
relied upon in any way in connection with any investment decision.

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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MSCZMGZNVFFGZZG -0- Jul/23/2012 06:26 GMT