InvestorQ : How has Nayara Energy managed to turn around from losses to huge profits in the current June 2022 quarter?
indhumathi Sayani made post

How has Nayara Energy managed to turn around from losses to huge profits in the current June 2022 quarter?

Answer
image
2 months ago
Follow

Russia backed Nayara Energy has reported stellar profit numbers in the June 2022 quarter turning around to profits from losses on the back of robust oil prices. Nayara Energy is partly owned by Rosneft of Russia. For the June 2022 quarter, Nayara Energy posted record quarterly profit of Rs3,564 crore. The profits margins of the company got a major boost from higher intake of discounted Russian oil. Nayara Energy has been one of the biggest procurers of Russian crude at discounted prices and that has boosted its profits substantially.

In the June 2021 quarter, the company had actually reported a small loss, so June 2022 represents a major turnaround for the stock. While Rosneft is one of the stake holders in Nayara Energy, the other stake holders include UCP Investment group and one of the leading global oil traders, Trafigura. Traditionally, refiners in India rarely purchased Russian oil due to rather prohibitive freight costs. Purchases have surged post the Russia Ukraine war and India now imports more crude from Russia than China does.

3 Views