Shares in Essar Energy were down on the FTSE 100 in morning trading, despite the Indian energy company reporting a rise in pre-tax profit in the full year ended 31 December.
Revenue rose 42 per cent in the period to over $10 billion, while pre-tax profit increased 28 per cent to $365.5 million. After tax profit was up 20 per cent to $248.3 million
However the group also said that its net debt had grown 30 per cent to $3.9 billion.
Following its $1.8 billion IPO last year the group said it had 8,070 MW worth of power generation projects under construction, of which around a third will become operational this year.
Naresh Nayyar, Chief Executive of Essar Energy, commented, "This is a strong financial result driven by record refinery throughput of 14.7 mmtpa, a pleasing uplift of over 50% in current price gross refinery margins and high availability at our power plants. Demand for energy in India is expected to continue to grow sharply and we remain focused on delivering our key projects, which in 2011 includes the first phase of our Vadinar refinery expansion and another 2,910 MW of power generation capacity. With the successful completion of our IPO and a subsequent convertible bond offering, we also have a robust financial position to fund our expansion programme."
"The Company's strategy is clear; to create a world-class, low cost Indian energy company, positioned to capitalise on India's rapidly growing energy demand. While the focus is on India, Essar Energy will also pursue opportunities overseas which support our strategy and deliver value to its shareholders."
By 08:50 shares in Essar Energy were down 3.58 per cent on the FTSE 100 to 458.00 pence per share.