Russian oil major RosneftMM>-owned Naira Energy posted a record quarterly profit in April-June as its margins improved on higher intakes of discounted Russian oil and fuel exports.
Naira posted a net profit of around Rs 35.64 billion ($447.5 million) in the June quarter, compared to a net loss of Rs 1.39 billion a year ago, said a stock exchange filing late on Friday.
Rosneft and Kesani Enterprises Co Ltd, a consortium led by Trafigura Group and Russia’s UCP Investment Group, hold 49.13% stake in Naira.
The June quarter profit of the private refiner was also higher than the profit of Rs 10.30 billion posted in the full financial year till March 31, 2022.
Refiners in India, which rarely buy Russian oil due to high freight costs, have been shutting down Russian oil since late February after some Western countries and companies turned away purchases from Moscow over its invasion of Ukraine.
Naira and private refiner Reliance Industries have emerged as major Indian buyers of Russian oil and both companies reported profits in the June quarter.
In contrast, state retailers posted a net loss during April-June as they sold refined fuel at below market rates in local markets to help the government cushion the impact of inflation.
Naira, which operates a 400,000-barrel-per-day Vadinar refinery in Gujarat, has not been approved as part of an international response to Russia’s ‘special operation’ in Ukraine, but Russian energy giant Rosneft has.
Since the imposition of Western sanctions against Russia, some top management executives have left the company.
On Friday, Naira announced the resignation of Rosneft’s representative Krzysztof Zielecki from its board and the appointment of Andrey Bogatenkov.
Naira said on Wednesday that Chief Financial Officer Anoop Vikal has also resigned.
Last week, it announced the resignation of Kesani Enterprises nominee Jonathan Kollek from the board and appointed Sachin Gupta in his place.
Bogtenkov is the Vice President of Commerce and Logistics with Rosneft and Gupta is the Chief Executive Officer of Trafigura India.
Some foreign banks and HDFC Bank have stopped giving trade credit to Naira for oil imports and some suppliers are demanding advance payments to avoid problems resulting from Western sanctions.
In addition, CARE Ratings has placed Naira’s long-term rating on ‘Credit Watch with Negative Implications’ due to sanctions against Moscow.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)