Essar Energy has said that its core earnings fell by 10 per cent comaprd to the same period previous year.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) for the calendar year 2011 was at $624.8 million compared to $696.5 million in 2010. The figure is worse than market expectations.

The Essar Group holds a majority 77 percent stake in the company and Essar Energy owns a majority stake in India-listed Essar Oil. Essar Oil has reported a net loss of Rs 3,986 crore in the third quarter mainly due to a heavy tax payment to the Indian authorities.

Essar had reported a net profit of Rs 273 crore in the same period of the previous year.

The Supreme Court of India had put aside a ruling by Gujarat High Court in 2008 and had asked Essar Oil to pay Rs 6,308 crore for a sales tax deferment scheme as the company was not eligible for the scheme. Essar Oil has already filed a review petition with the Supreme court of India.

The shares of Essar Energy have fallen by 41 percent in the last three months. The shares closed at 126 pence on Friday. The company is currently valued at about 1.6 billion pounds.