RIL petroleum export volume remains above 10 mt

Export earnings dip but domestic sales rise

If Reliance Industries Ltd's (RIL's) performance is anything to go by, there seems to be a rebound in petroleum export volumes from India.

Sixty-three per cent of the company's petroleum product sales were in the export market in the quarter ending March. RIL's exports have remained in excess of 10 million tonnes (mt) for three continuous quarters.

RIL says it weighs realisation in local and export markets and accordingly pushes products. The prevailing low prices, however, brought down its export earnings by 36 per cent.

The company said its sales from domestic retail outlets was the highest among its peers at 240 kilolitres a month during the quarter. Some 200 outlets were added during the last quarter, with volumes more than doubling over 2014-15.

RIL opened 950 retail outlets in India during 2015-16 against a target of 1,000 announced by its chairman, Mukesh Ambani, at the annual general meeting last year. In April 2015, the company said it was aiming to restart the entire network of 1,400 outlets in 2015-16.

Diesel retail sales in the domestic market were up 42 per cent over the quarter ending December 2015. "Encouraging customer response and the growing popularity of the Reliance brand attracted channel partners," said the company. In bulk diesel sales, it re-secured its earlier customer base with about 3.5 per cent market share.

The biggest private sector refiner continued to sell less than half its petroleum products in the domestic market during the quarter. Of the total 17.8 mt refinery throughput, RIL sold 3.7 mt in the domestic market, 10.8 mt in the export market and used 2.6 mt during January-March 2016.

Sales in the domestic market were marginally down from four mt in October-December.

According to an Edelweiss report, exports dipped one per cent quarter on quarter, as the company "took advantage of robust domestic demand, led by transportation fuels and naphtha".

In its presentation to investors, the company said it successfully placed products in Turkey, East Africa and Australia, beside introducing a new gasoline grade, 91/81. It recorded the highest ever yearly production of ultra-low sulphur diesel at 15.7 mt.

Petroleum exports were to the West Asia, the US, South East Asia and Australia. Gasoil exports were to Europe, Africa and South East Asia. The company also placed premium Petroleum grades (Alkylate, PBOB) in Latin America and the American market at healthy netbacks.

While the firm plans to leverage information technology for retail sales, it also wants to deploy the Reliance JIO platform to upgrade its fleet management programme.