Mumbai: Essar Oil Ltd is expected to remain in the red for the second consecutive quarter due to mounting foreign exchange losses and weak refining margins, three brokerages said in their pre-earnings reports.
The Ruia-promoted company is seen reporting a net loss in the range of 1.9-3.2 bln rupees and sales between 122.3-137.4 bln rupees.
Essar Oil will announce its earnings today.

The company posted its first quarterly loss in Jul-Sep at 1.66 bln rupees because of a forex loss of 4.07 bln rupees.
In Oct-Dec, the company may report a forex loss due to revaluation of its foreign currency debt following a sharp depreciation in the rupee against the dollar in the quarter.
The rupee fell nearly 16% against the US dollar since April. However, the Indian currency depreciated 7.8% between Sep 30 and Dec 31.
Essar Oil has significant exposure to overseas debt through foreign currency convertible bonds and external commercial borrowings.
According to Antique Stock Broking, Essar Oil's forex loss during Oct-Dec is seen at 4.5 bln rupees.
Brokerages estimate the company's gross refining margin, the difference between the value of finished refinery products and processed crude oil, at $4.5-$6.4 a barrel during the quarter under review.
The company's GRM in Oct-Dec 2010 was $7.1 per barrel and $7.22 in Jul-Sep.
Edelweiss Securities said in its pre-earnings report that the 35-day refinery shutdown that was completed on Oct 24 would dent crude processing.

It estimates the company's Oct-Dec capacity utilisation at 80%.
Shares of Essar Oil ended up 5.4% at 65.80 rupees on the National Stock Exchange today.