Essar Oil UK owner of Stanlow refinery said that they the company has successfully raised its finance, in order to replace the previous receivables facility. Essar Oil UK runs the Stanlow Refinery located on the south side of the Mersey Estuary near Liverpool. There is a strong negotiation going on between Essar Oil UK, controlled by the Ruias with the pollo Global Management and three other banks to raise GBP 400 million, to repay the credit raised against receivables from Lloyds Bank. After the company ran into financial troubles due to pandemic-led disruptions, the British lender had ceased acting as Essar’s main banker. on Thursday said that the company has successfully raised its finance to replace the previous receivables facility. The company will sign the term sheets soon, so that the final credit can be drawn and liabilities pending with Lloyds can be closed. The Essar Oil management team confirmed that their sales of the product have improved, post the ease of the lockdown and is trying to come back on track to cover the losses suffered. In the ongoing quarter, the UK oil refinery is expected to generate a better revenue. The company is expected to generate $40 million positive earnings before interest, tax, depreciation, and amortization. Owing to the loss suffered by company during the first wave of the pandemic, the company is expected to cover the revenue losses and a better sale in the upcoming quarter.
In the corresponding quarter of 2020, the UK oil refinery suffered loss by having a negative $18 million earnings before interest, tax, depreciation, and amortization. Whereas the company has generated a positive $300 million earnings before interest, tax, depreciation, and amortization in year before the pandemic. The Essar Oil UK officials confirmed that the refinery continues to operate as normal and there has been no interruption in the supply of products in order to meet the needs and requirement of the consumers. The demand for the refinery products has been increased to a great extent as compared to the demands during the restriction and is increasing continuously which is good sign for the UK oil company to get back to the track to cover the losses suffered in the previous quarters.
The Essar UK Oil company is expecting some benefits from the anticipated recovery, with respect to the aviation fuel demand in the coming few months. The company will be announcing its further financing by June, which is still under discussion and is not yet concluded. The company with their bright minds is planning to take a decision, where it will be delivering the operational cost reduction initiatives during the year, which would help the organization to further improve its position. The Stanlow refinery which is located on the south side of the Mersey Estuary near Liverpool, is operated by Essar Oil UK. About 16% of the UK’s transport fuel is produced by the Stanlow Refinery. It processes 10 million tons of crude and feedstocks annually. Essar Oil UK had acquired the Stanlow refinery in 2011, and since then, the company has invested around $1 billion in the business.
