Essar Energy rises as it reaffirms positive outlook for business

Suzie Neuwirth
INDIA-FOCUSED energy company Essar Energy yesterday reiterated its positive outlook for the business, after a recent fall in the share price.

The FTSE 250-listed firm’s shares went up four per cent yesterday morning in response to the news.

“Energy demand in India will continue to be strong for many years to come and I believe that Essar Energy is well placed to meet that demand,” said chairman Prashant Ruia.

“Although our recent share price performance has been disappointing, our underlying business is strong and our future prospects remain positive.”

The company, which owns the Stanlow oil refinery in Cheshire alongside its Indian assets, said that it is currently trading in line with expectations and its outlook remains unchanged.

Essar Energy has invested over $8bn (£4.9bn) in the business over the past three years and is now focusing on improving its operational and financial performance, through asset optimisation and refinancing programmes. Shares closed up 1.2 per cent yesterday.