"We expect sharp rise in operating profit from next financial year as we complete the USD 15-billion expansion programme at our refining and petchem businesses at Jamnagar, Dahej and others.
"The new capacities could increase earnings before interest, tax, depreciation and amortisation (Ebitda) by USD 3.2-3.5 billion on a full-year basis," joint chief financial officer Srikanth Venkatachari told reporters while announcing the third quarter earnings.
The oil-to-telecom conglomerate was on a USD 15 billion capex programme since March 2012 to set up a petroleum coke integrated gasification combined cycle (IGCC) plant and a refinery off-gas cracker (ROGC), costing USD 4-5 billion each. This would increase its petrochemical capacity by 66 per cent. Last month, RIL had commissioned the first phase of new paraxylene project at Jamnagar.
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The company said, "capex was principally on account of ongoing projects in the petrochemicals and refining business at Jamnagar, Dahej, Hazira, US shale gas projects and digital services business."
"While the ROGC is 'almost' complete, the IGCC will be mechanically completed by June 2017. After a few months of stabilisation, the benefits of the projects will be reflected in the company's operating profit," Srikanth said, adding "I believe even in the next financial year, we will see a substantial jump in Ebitda".
The Mukesh Ambani-controlled RIL, which runs the world's largest refinery complex in Jamnagar, earlier in the day a better-than-expected 10 per cent rise in December quarter net profit at Rs 8,022 crore, helped by strong refining margin, on a standalone basis, which include the refining and petrochem business and oil and gas exploration.
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