India-focused energy group Essar Energy said it put in a solid operating performance in its first quarter but demand has been affected at its gas-based plants.
All plants are said to have performed well in the three months to June 30th as total generation increased by 29% from 1,502MWh to 1,945MWh, helped by the commissioning of the 1,200MW Salaya I coal-fired power project in the current quarter.
However, the group said that higher gas prices have resulted in a higher generation cost, meaning that there has been an impact on demand at its gas-based plants in recent months.
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"The June 2012 quarter saw plant load factors reduced by 22% at Hazira due to lower demand from GUVNL, the Gujarat State utility," Essar said.
Meanwhile, generation at the newly-expanded Vadinar refinery has increased "considerably" compared with last year due to higher demand for power and steam.
The refinery achieved a throughput of 4.48m metric tonnes (mmt), up 24% year-on-year.
Essar had underlying gross debt (excluding working capital loans) of $6,217m and underlying net debt of $5,822m, down from $6,273m at March 31st, "which is in line with our plans", the group said. While underlying net debt was broadly unchanged, the improvement was mainly due toe the 10% depreciation of the rupee against the US dollar.
By 08:15 on Tuesday, Essar's shares were down 0.98% at 110.80p.
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