Fresh blow for shareholders as Essar reports 68% decline in quarterly production at Stanlow refinery
Fresh from receiving a low-ball takeover approach from its biggest shareholder, Essar Energy today reported a 68 per cent dive in quarterly production at its Stanlow refinery in Cheshire and announced a $100 million (£60 million) cost-cutting drive.
Essar Energy said it processed only 5.8 million barrels of oil at Stanlow in the final three months of 2013, down from 18 million a year earlier, as planned maintenance and problems with its furnace interrupted work.
In an interim statement that made no mention of the proposed bid, Essar said margins in European refining remained slim, as a result of increasing competition from super-refineries in Asia and the Middle East.
“Stanlow is embarking on an estimated $100 million cost-improvement programme to ensure that the business is able to weather this period of exceptionally poor refining margins,” a spokesman said.
The trading statement comes a day after City investors expressed anger at the billionaire Ruia family’s offer of £900 million, or 70p a share, for the 22 per cent of the company they do not already own.
Essar Energy listed in 2010 at 420p, but shares have slumped since.
The bid, which has triggered calls for more protection for minority shareholders, yesterday added 2.15p to Essar’s share price, to 68.15p, but languished below the offer price.
The shares lost 0.80p, or 1.2%, today, falling to 67.35p.
- 1 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
Female Muay Thai champion hustles coaches to give them a beating
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...