Losses at oil and power station operator Essar widened as the impact of the weak rupee took its toll on the Indian firm.
Essar, which operates the UK’s second-largest fuel refinery at Stanlow, said it had taken a near-£300million hit on third quarter earnings due to the depreciation of the rupee.
Half-year revenues at the company, which announced last month it is pulling out of a project in Kenya because it was not economically viable, dipped to £335million, down from £360million the previous year, although revenues were up to £8.2billion.
But the company warned margins at its European operations were falling to levels which were problematic.
“Global refining margins have been at their lowest since 2011, but the Vadinar refinery nevertheless managed to maintain its margins above target at a US$7.9 per barrel premium to its Singapore benchmark,” said chief executive Sushil Maroo
“In Europe, margins have fallen to levels where there is clear evidence of pressure on a number of refineries. Stanlow is close to completing a major maintenance turnaround which will position it well for a recovery in margins. Near term, margins are expected to remain under pressure, likely leading to further run-cuts in Europe.”