Essar Energy reiterates outlook, shares rise

Wed Dec 18, 2013 3:26am EST

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Dec 18 (Reuters) - Essar Energy Plc reiterated its positive outlook for the business despite the recent fall in its share prices, sending its stock up 4 percent in early trade.

The London-listed power, oil and gas arm of privately held Indian conglomerate Essar Group said energy demand in India will continue to remain strong for many years and that it was well placed to meet that demand.

"Although our recent share price performance has been disappointing, our underlying business is strong and our future prospects remain positive," Essar Energy Chairman Prashant Ruia said in a statement on Wednesday.

Shares in the company were up 2 percent at 72.30 pence at 0823 GMT, making it one of the top percentage gainers on the FTSE-250 Midcap Index. The stock has fallen nearly 30 percent since the company announced a first-half loss on Nov. 25.

Essar added that its operational performance was currently in line with expectations and its outlook remains unchanged. (Reporting by Roshni Menon in Bangalore; Editing by Supriya Kurane)

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