Good performance in refining, petrochemicals puts profit at Rs 5,136 cr
Better refining and petrochemical margins during the October-December quarter helped Mukesh Ambani-promoted Reliance Industries (RIL) post its highest quarterly profit in three years. Net profit of the energy-to-retail conglomerate met street expectations and was up 28.14 per cent at Rs 5,136 crore against Rs 4,008 crore during the corresponding quarter in 2009-10.
“Good performance and improved margins were expected across refining and petrochemical business. The upstream segment lagged due to lower production from the KG-D6 field,” said Vinay Nair, research analyst, Angel broking. During the quarter RIL's gross refining margin (turning every barrel of crude oil into fuel) stood at $9 per barrel against $5.9 per barrel in the corresponding previous period.
“Reliance had another record quarter as both refining and petrochemical margins continue to improve and for certain products recorded historic levels. Robust demand growth in home markets and highly competitive assets enabled Reliance to have industry leading operating rates and margins," Mukesh Ambani, Chairman and Managing Director, RIL, said in a statement.
Natural gas production from RIL's largest gas field, K-G D6 fell 12 per cent to about 53 million cubic meters a day. Gas production from the field may rise to 60 million cubic meters a day in the next three months, the directorate general of hydrocarbons had said earlier this month. According to the ministry of petroleum and natural gas, output from the field may climb to 80 million cubic meters a day by March 2013.
Oil and gas production from the Panna-Mukta fields was 34 billion cubic feet of natural gas, down 32 per cent and 38 per cent respectively, due to shutdowns. Production from Tapti field was 74 billion cubic feet of natural gas and 0.95 million barrels of condensate, a decrease of 10 per cent and 18 per cent, respectively due to natural reserves decline.
The company's revenue for refining and marketing business was up 9.4 per cent at Rs 52,524 crore against Rs 48,000 in the corresponding quarter last year. At present, RIL has 695 retail outlets operational primarily in western and southern states. Exports of refined products were also higher at $20.1 billion as against $14.3 billion during the corresponding period of the previous year. This accounted for about 28.4 million tonne of products as against 23.6 million tonne during the corresponding period of the previous year due to increased export volumes from SEZ refinery.
The company in a press statement said this was the best quarter ever for the petrochemicals segment with respect to production, revenue and operating profit.
Revenue from the company's petrochemical business was up 8.2 per cent at Rs 15,962 crore against Rs 14,756 crore in the third quarter of last year.
"During the quarter, domestic demand for polyester products was higher by 10 per cent compared to corresponding period last year. On the back of strong domestic demand growth, lack of adequate new capabilities globally and historically high cotton prices, the polyester chain witnessed robust margin environment," the company said.
It also said it would continue to expand its Reliance Retail specialty formats. RIL, however, did not give the expansion figures. Currently the company Reliance Retail operates over 1,000 stores in 14 states and more than 85 cities in India.
