Essar Energy suffers 19% fall in net profit

London-listed Indian energy giant Essar Energy suffered a fall of 19 per cent in net profit to $91.1 million (equivalent to £58.3 million) during the first half ended June 30.

Essar said that Ebitda slipped 25 per cent to $320.2 million during the half-year period as compared with the corresponding period of last year.

Revenue jumped year-on-year 66 per cent to settle at $4.76 billion, but increasing crude consumption and operating expenses eroded revenue.

However, the company said it was optimistic about future as prospects for growth were good. The company said that the Indian government was hiking investment in power to meet the increasing demands of its growing economy.

Commenting on the half-year results, Essar Energy vice chairman Prashant Ruia said, "The first six months of 2010 were a pivotal period with the creation of the company and its successful flotation on the London Stock Exchange.”

The company also announced the appointment of P. Sampath as chief financial officer. Mr. Sampath, who was previously CFO at Essar Oil, will replace Gerry Bacon who will depart at the end of September.

Essar was listed on the London stock market by parent and Indian conglomerate Essar, which currently owns a majority 76 per cent stake. The company raised $2 billion from the flotation, and pumped the money into new growth projects.

Shares in Essar Energy were trading at 412.1p-a-share, up 3.5 per cent by lunchtime on Thursday.