Nayara Energy (Formerly Essar Oil) Limited Unlisted Shares Annual Reports

Nayara Energy (Formerly Essar Oil) Limited Unlisted Shares

Energetic. Nayara Energy Limited's Annual Report 2023-24 highlights India's transformative growth and Nayara's role in fueling the economy. The report details Nayara's commitment to "EXCEL" values, securing energy supplies for India, and contributing to its energy security by providing consistent and affordable energy. Highlights of FY 2023-24. Nayara Energy is expanding into petrochemicals with a polypropylene plant. * Refinery: Processed 20.32 MMT of crude oil, achieving 101.6% capacity utilization and processing 95% ultra-heavy and heavy crude oils. * Trading: Procured 144.5 MM BBL of crude oil, 225 MMSCM of natural gas, and 1.85 MMT of coal. * Marketing: Achieved highest-ever sales of 7.5 Mn KL through retail outlets and expanded Nayara branded outlets to 5,000+. Increased domestic bulk HSD consumption by 80%. * CSR: Conducted >54,000 medical consultations in 20 villages and trained 722 youth in various skills. Five Gram panchayats declared 'malnutrition-free'. * Workplace Safety: Recorded 28 Mn safe man-hours at the polypropylene project site. Executive Chairman's Statement. India's record petroleum consumption and coal production, alongside automobile sales growth, underscore its economic rise. Nayara Energy is committed to supporting India's ambition to become a Viksit Bharat by 2047. The company plans to commission Phase 1 of its petrochemicals project in Q2 FY 2024-25, a 450 KTPA polypropylene project, and is also undertaking major turnaround projects to boost operational excellence. CEO's Letter. Nayara Energy registered a 12% y-o-y growth in revenue from operations, standing at 1,546,293 million, and a 26% y-o-y growth in net PAT, reaching 120,852 million in FY 2023-24. Nayara Energy processed 20.32 MMT of crude, achieving 99.74% availability. The refinery processed 129 grades of crude and was ranked among the best in Asia Pacific for lowest Cost of Transportation Fuel (CTF). Nayara Energy is planning significant investments in ethanol manufacturing, retail network expansion to 10,000 outlets by 2030, and feed study of Phase 2 of the petrochemical project, consisting of a 1.2 MMTPA steam cracker unit. The company also strengthened its presence in the institutional business. Industry Overview. The global economy grew 3.2% in CY 2023. India showed resilience, registering 8.2% GDP growth in FY 2023-24. India’s energy security, affordability, and sustainability are critical. The allocation of 3.3% of GDP to the infrastructure sector by the Government of India in FY 2024-25 will boost the Oil & Gas sector. India witnessed a record consumption of petroleum products at 233.3 MMT, the highest ever. Refinery. The Vadinar Refinery processed 20.32 MMT of Crude Oil in FY 2023-24 and maximized the processing of a variety of economically viable crude grades achieving an overall operational availability of 99.74% during FY 2023-24. International Supply & Trade (IST) and Economic Planning & Scheduling (EPS). Nayara Energy processes 129 total distinct crude grades. The company maintained effective risk management and well-planned strategies. Marketing. Nayara Energy achieved a historic milestone of 5,000 Nayara branded outlets, and achieved highest-ever Market Effectiveness (ME) for MS. Asset Development. Nayara Energy’s Phase 1 petrochemicals project is at 98.3% completion, aiming to maximize propylene recovery from the Refinery. The company is considering commencement of work on Front End Engineering for Phase 2 Petrochemicals Project. Safety and Occupational Health. Nayara Energy’s Total Recordable Injury Rate (TRIR) is 0.171. The company is reinforcing safety through initiatives, measures, and training. Environment and Sustainability. The company planted 250 hectares of mangroves for carbon sequestration. People. At Nayara Energy, our people are our greatest strength, and we are committed towards building a culture that empowers employees to reach their full potential and excel. The foundation stone was laid for Nayara Learning Academy. CSR Program. The company had an approved CSR expenditure of 284.6 million, focusing on health, sanitation, sustainable livelihoods, education, and skilling. Information Technology. The company is strengthening IT infrastructure, focusing on digital transformation in operations. Financial Performance. The company's revenue was ₹1,546,293 million and Profit After Tax was ₹120,852 million in FY 2023-24. Governance. The Board includes both Executive and Non-Executive Directors. Nayara has a policy for appointment and remuneration of Directors and employees. The Board conducts performance evaluations. The Audit Committee consists of independent directors. Risk Management. Nayara Energy has a robust risk management framework for safety and operational excellence. The company also has in place a robust system and framework of Internal Financial Controls. Auditors and Audit. The report given by S. R. Batliboi & Co. LLP, Statutory Auditors, on the Company's financial statements for FY 2023-24, forms a part of this Annual Report. Directors' Responsibility Statement. Directors confirm the preparation of accounts following the applicable standards and are of a going concern basis. Financial Highlights. *Revenue from Operations: ₹1,546,293 Mn. *Profit After Tax: ₹120,852 Mn. *Higher EBITDA: ₹202,478 Million

Nayara Energy (Formerly Essar Oil) Limited Unlisted Shares

The Nayara Energy Limited Annual Report 2022-23 highlights the company's commitment to India's energy needs, energizing mobility, and empowering communities. Nayara Energy aims to actively participate in ensuring India's energy security, contributing ~8% of India's refining output. **Values:** Nayara's core values are Energetic, Xtraordinary, Courageous, Ethical, and Lead (EXCEL), driving the company to shape tomorrow, seek better ways, succeed in a changing market, and act with integrity. **Corporate Portrait:** Vadinar refinery is India's second largest single-site refinery, known for its safety, reliability, and efficiency and the company is committed to fueling India's growing energy demand by innovating and developing products our customers want. A phased asset development strategy into petrochemicals aims for crude to chemicals journey. **Financial & Operational Performance:** In FY 2022-23, Nayara Energy procured 131.32 Mn bbl of crude, purchased 83.5 MMSCM of Natural Gas, and 1.938 MMT of Coal. The refinery achieved ~99.8% operational availability outside turnaround. Marketing efforts launched new products and achieved 12% ethanol blending to reduce CO₂e emissions. Petrochemical Phase-1 construction achieved 91% completion. The company facilitated 57,000 medical consultations and assisted over 4,000 farmers, reducing underweight children in the Dwarka region by 69%. Achieved 15 Mn safe man hours, with 5,500 LTI-free days at the Refinery. Multiple awards and recognitions were received. **Board's Report Highlights:** The company's revenue from operations was ₹1,378,213 million (FY 21-22: ₹1,196,894 million). EBITDA was ₹183,112 million (FY 21-22: ₹50,675 million), with a profit after tax of ₹95,916 million (FY 21-22: ₹10,299 million). **Market Dynamics & Response:** India's GDP grew by 3.4% in CY 2022. Nayara Energy manages its refinery in Vadinar, handling a diverse range of crude and the global oil and gas industry experienced high volatility in crude oil and finished product prices in FY 2022-23. Demand has surpassed pre-pandemic levels, and the company expanded its international customer and supplier base. India saw 4.8% growth in petroleum production, and 10.2% consumption growth. **Strategy in Action:** The company prioritizes expanding its retail network and supports biofuel blending. The company also focus on performance with the plan to mitigate ~20,000 tCO2e annually by establishing a 10MW solar plant at Vadinar refinery and reduce ~730 tCO2e per year by scheduled commissioning a 500 kW captive solar power plant at our newly established rail-fed fuel depot in Pali, Rajasthan. As of 2022-23, over 1,000 retail outlets and two Nayara owned depots already have solar installations along with a planned pilot capacity of 10 MW solar generation at the Vadinar refinery. Return on capital employed was 43.25%, balance sheet was strengthened reducing debt. **Commitment to People, Safety, & Communities:** TRIR of 0.09 was achieved, a goal was set to implement industry best practices in India, aiming to make a substantial impact on road transportation safety, while nearly 5,500 injury-free days were recorded for employees, encompassing over 55 million working hours. Actively translate words into action, actively promoting inclusive development through impactful programmes in key areas such as health and nutrition, education, and skill development, facilitated over 57,000 consultations through our Mobile Health Clinic (MHC) and Community Health Centre, spanning 15 villages in Jamnagar and Devbhumi Dwarka. Notably, 50,000+ forecourt salesman and communities were positively impacted. **Environmental Stewardship:** 10% ethanol blending compliance in Motor Spirit (MS) and expanding green cover by 25% over the next three years, with 175 hectares of voluntary mangrove cover and also the company ensures that all site-related emissions from our refinery remain below the expected regulatory requirements. **Operational Focus:** The refinery was completed in 29 days and operates under state-of-the-art facility. 97% of heavy and ultra-heavy crudes and produced 87% of high margin distillates processed. Production of domestic MS and HSD were at a record level in 2022-23. Retail network expanded to 6,300+ outlets with a focus on automation for future readiness, operating under the "In India, for India" mission. **Future Outlook:** Focus to increase Retail Outlet network by 50% and foray into high growth petrochemical business with completion of Polypropylene unit. The information provided gives shareholders an overview of Nayara Energy's achievements, challenges, and prospects for the future, emphasizing its role in India's energy landscape and its commitment to sustainable and inclusive growth. The report also details the company's financial performance, operational highlights, strategic initiatives, and corporate governance practices, ensuring transparency and accountability to its stakeholders.

Nayara Energy (Formerly Essar Oil) Limited Unlisted Shares

Nayara Energy's Annual Report for 2021-22, titled "Nayara for India," highlights the company's commitment to India's energy security. As a major downstream player, Nayara Energy contributes around 8% of India's refining output. Nayara Energy focuses on several key commitments: * **India's Energy Security:** The refinery at Vadinar is crucial. Nayara Energy ensures its retail network remains operational, even during crises like the COVID-19 pandemic, and views itself as a trusted energy partner, aiming to support India's progress ('Pragati'). * **Communities:** Nayara Energy is actively working to improve the communities near the Vadinar Refinery in the Devbhumi Dwarka district by addressing water scarcity and health services. It collaborates with the Government of Gujarat to combat malnutrition in 249 villages in the Dwarka region. The company disposed of 23 tonnes of plastic and 139 tonnes of dry waste from landfills. * **Livelihoods:** Nayara expands its retail network (6,500+ outlets) and launched the EXCEL project with UNDP to improve livelihoods for youths and farmers. The Gram Samruddhi project aims to double farmers' income by 2026 through climate-smart agriculture across 11,000 hectares in 15 villages. * **Petrochemical Needs:** The company focuses on innovation and is constructing polypropylene and allied units at the Vadinar refinery, expected to be commissioned by 2023/24. This is described as a "crude-to-chemicals journey". **Key Performance Indicators:** * **Refinery & Assets:** The refinery safely handled 5,000 vessels and 390 MMT of crude, achieved 5,000+ Loss Time Injury (LTI) free days, and expanded its crude basket to 126 grades. * **Petchem:** The foundation stone was laid for the petrochemical expansion project (450 KTPA Polypropylene Plant), with construction expected to complete in 2023 and project financing of 4,016 crores secured. * **Awards:** Nayara won "The Corporate Social Responsibility Award - Targeted Program" at the S&P Global Platts Energy Awards, a CII National Water Award, a 2021 TIOL National Tax Award, and a CII Energy Efficient Unit award. * **Financials:** Over $1 BN of prepayments was raised during the COVID-19 second wave, and 2,285 crore was raised through NCDs. * **Retail:** The company has 6,500+ retail outlets (2,000+ Nayara-branded) and has automated 90% of its retail network. * **CSR:** Healthcare services were provided to 60,000+ patients across 15 villages and additional water storage of 15.29 million cubic meters was created. Market access was facilitated for 1,000+ farmers. **Chairman's Message:** Executive Chairman Tony Fountain notes the challenges posed by the Coronavirus pandemic and geopolitical tensions from the Russia-Ukraine conflict. He commends India's management of the pandemic and notes the loss of employees. He emphasizes Nayara's operational excellence and financial prudence, highlighting the flexibility to access crude and export surpluses, and the EBITDA growth (36% YoY growth in EBITDA for FY2022.) He mentions challenges related to instability, crude price spikes, liquidity, cash, and high working capital requirements. He hopes for resolution to the conflict in Ukraine. Fountain notes the progress on the 450 KTPA Polypropylene / Petrochemical project set to be commissioned by the third quarter of 2023, support for communities, and commitment to energy and petrochemical security. The company was honoured with the CSR Campaign of the Year Award at Platts 23rd Annual Global Energy Awards Summit. **CEO's Message:** CEO Dr. Alois Virag discusses the challenges of the coronavirus pandemic. Nayara's retail network remained operational even during the second wave of COVID, community stewardship,Gram Samruddhi project. The company built a makeshift hospital with 50 beds at Vadinar. The company ensured continuity, while remaining committed to health and safety, achieving 50 million LTI-free man hours. The company transitioned to a flexible hybrid model. Business operations resulted in optimisation and a 99.9 % reliability achieved. 9 new crudes were introduced, and solids were captured, along with a shift from Natural Gas to alternate fuels saved production costs. The Company achieved its first gas resale transaction, operationalized Nayara's international launchpad, launched Mineral Turpentine Oil (MTO), and maximised ethanol blending. Nayara Energy became the first OMC to share petroleum product pipelines. They have $140+ million EBITDA contribution, $1 Billion + in prepayments secured and 2,285 raised crores through listed NCDs. The retail network has expanded to 6,568 retail outlets by the end of March 2022, with ~2000+ outlets now operating under the Nayara Energy brand. **Board of Directors:** The report lists the names and designations of the company's board of directors.

Nayara Energy (Formerly Essar Oil) Limited Unlisted Shares

Resilient Today for a Brighter Tomorrow: The Nayara Energy Annual Report 2020-21 Summary Nayara Energy Limited's annual report for 2020-21 highlights the company's resilience and strategic initiatives during a year marked by unprecedented disruption due to COVID-19. Corporate Overview and Key Performance: * **Resilience and Adaptation:** Despite drastic product demand drops, Nayara Energy achieved 85% capacity. It launched phase 1 of an asset development project revamping FCC and LPG Treatment Units and setting up new Propylene Recovery (PRU) and Polypropylene (PP) Units. * **Financial Strength:** The company maintained its domestic credit rating of 'AA' by CARE amid a volatile global environment, showcasing a stable outlook. The Retail Business delivered volume growth of 3% year-on-year despite industry-wide de-growth. * **Operational Achievements:** Nayara Energy completed a major shutdown ("Turnaround 2020") without major safety incidents and achieved 4747 LTI-free days for employees. All 30 marketing locations were certified to Quality (ISO 9001), Environment (ISO 14001), and Occupational Health & Safety (ISO 45001). Nayara was also adjudged as the National Energy Leader for the last two consecutive years by the CII. * **Retail Expansion:** The company achieved a milestone of 6000+ retail fuel stations and launched new, enhanced Nayara-branded fuel stations. Chairman's Note (Tony Fountain): * **Pandemic Impact:** The pandemic severely impacted the global oil industry. Nayara Energy navigated these challenges with agility, leadership, and owner support. * **Operational Success:** Operations continued despite industry decline, with fuel retail business growing by 3%. The Vadinar refinery operated above 85% capacity and successfully completed a scheduled shutdown with over 10,000 contract workers on site without spreading infection. * **Strategic Focus:** Nayara remains committed to building a world-class integrated petrochemical complex, aligning with the Government of India's "Atmanirbhar Bharat" vision. Thyssenkrupp, Toyo, and Technip were appointed as partners for the first phase polypropylene expansion. * **Community Support:** Multi-pronged Covid relief efforts included setting up a 50-bed Covid Care center, launching a mobile health van, and providing PPE kits and equipment to frontline workers, benefiting over 50,000 people in 15 villages. * **Leadership Changes:** Key leadership changes announced, with Mr. B Anand succeeded by Dr. Alois Virag as CEO. CEO's Message (Alois Virag): * **Leveraging Strengths:** FY20-21 focused on leveraging innate strengths and virtues to overcome disruptions and uncertainty while moving forward with expansion plans. * **Employee Well-being:** Emphasis was placed on employee health, safety, and emotional well-being, including Covid-19 safety protocols, supportive policies, doubled insurance cover for contract staff, and employee assistance programs for stress and anxiety. * **Community Resilience:** CSR efforts focused on communities in Devbhumi Dwarka and Jamnagar districts, with response and rehabilitation programs benefiting 12,000-odd families, along with telemedicine kiosks and mobile training apps launched. Installation of 2 oxygen plants at goverment run hospitals in Jamnagar and Rajkot and 1 oxygen plant in Military Hospital in Jamnagar. * **Digitization and Innovation:** Early digital infrastructure investments enabled an agile transition to remote work, and 3600+ retail outlets were automated. Supply operations were bolstered by Vehicle Tracking System (VTS), and manual invoice-to-payment processes were automated. * **Operational Optimization:** Nayara maintained throughput at 90%, the highest among Indian refiners, through exports and prepaid term contracts. Six new crudes were introduced into the crude basket, and yields and unit reliability were optimized through a planned shutdown. Market share grew to 6.1% despite lockdowns, with EBITDA from retail standing at $410 million. * **Financial Strength Amidst Adversity:** The domestic credit rating was affirmed at AA with a stable outlook through cost control, liquidity management, prepayments and efficient refinancing. Financial closure was also achieved for Phase 1 of the petrochemicals expansion plan. * **Expansion Plans:** From October 2020, all new outlets were commissioned under the Nayara Brand. Phase 1 expansion entails existing unit revamps, a propylene recovery unit, and a 450 KTPA polypropylene production unit. Board's Report: * **Financial Performance (Standalone):** Revenue from operations reached ₹875,006 million. The Company earned a profit after tax (PAT) of ₹4,665 million. There was increase in the authorized share capital of the Company to 180,006.8 million. * **Global Market:** The global economy and oil markets witnessed a historic collapse in demand caused by the Covid-19 pandemic. Global oil inventories built by almost an additional 1.4 billion bbls over the 2019-end figures. For the year ahead, the International Monetary Fund (IMF) has projected the global economy to grow at the rate of 5.5 percent in 2021 and 4.2 percent in 2022. * **Domestic Market Overview:** India's passenger vehicle market is expected to post a strong double-digit growth due to strong decline in last 2 years. Unprecedented drop in overall volume in the domestic market, led by decline in sale of two-wheelers has pushed the industry back by six years. * **Operational Excellence:** The refinery processed 17.07 MMT of crude achieving 85% capacity utilization. The Company optimized performance through the introduction of new products. * **Marketing Performance:** The retail business continued to deliver brilliant all-round performance during FY 2021 with 3% year on year volume. Nayara also added 515 new outlets in FY 2021. By March 2021 your company passed the 6000+ station count. * **Institutional Business:** The business registered it's highest ever sale of high speed diesel (HSD), Light Diesel Oil (LDO), and better than plan delivery for bitumen. Increased to the 4.54% in 2021 blending percentage. * **Asset Development:** Nayara Energy's strategy includes a step-by step implementation of an asset development plan. The Company aims to realize the full potential of the refinery scheme by maximizing the use of olefinic feedstock propylene, for converting it into polypropylene. * **Safety First:** Company optimized performance through the introduction of new products such as Marine Fuel Oil, Heavy Naphtha and High-Density Diesel giving it market share gains in extremely volatile markets. * **Information Technology:** Your company took up various initiatives by moving towards a greater degree of digitalisation of its processes. * **People:** Company has undertaken various employee assistance program, 24/7 counselling and doctor consultation support, awareness sessions, RT-PCR tests for employees and their dependents, and hospitalization & insurance support, among others, for all employees. * **Sustainable Development of Communities:** Your Company has constituted a Corporate Social Responsibility Committee named as CSR and Sustainability Committee ("CSR Committee"). INR 19.18 crore CSR expenditure for the financial year 2021. * **Governance:** Corporate Governance is a vital part of our business framework. It is designed to ensure compliance, transparency, and integrity in all areas of our work. Financial Statements (Standalone and Consolidated): * **Revenue and Profit:** Consolidated revenue for the year was ₹875,006 million, while consolidated net profit was ₹4,582 million. * **Operational Adjustments:** Nayara Energy implemented cloud-based connected plant services to enhance plant performance. With the advent of the 'new normal', Nayara moved onto a digitally elastic workspace. * **Capital and Debt:** There is no change in the issued, subscribed and the paid-up share capital of the Company during FY 2021. * **Financial Control & Vigilance:** Nayara Energy implements robust financial controls, risk management, and ethical standards, including a Whistle Blower Policy. In conclusion, Nayara Energy's FY20-21 Annual Report highlights resilience, strategic investments, community support, and a commitment to strengthening India's energy security. The company has clear strategic plans for operational and financial efficiencies, as well as social responsibility, to drive future value creation.