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On the back of record refining throughput and a 41 per cent increase in gross refining margin (GRM), Reliance Industries Ltd reported a 17 per cent increase in its net profit for the quarter ended June 30, 2011.
Net profit for the quarter stood at Rs 5,661 crore as against Rs 4,851 crore in the corresponding quarter last year.
The company's net turnover for the quarter stood at Rs 81,018 crore, a growth of 39 per cent over Rs 58,228 crore in the corresponding quarter last year.
“The growth in earnings was driven by strong refining margins and sustained performance in the petrochemicals business,” said Mr Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, in a statement from the company. “Our cash flows give us the unparalleled opportunity to allocate capital to higher-margin resource plays in leading markets around the world. We remain committed towards investing in India and have commenced the investment programme in petrochemical business.”
The company's GRM for the quarter stood at $10.3 a barrel as against $7.3 a barrel. During the quarter, RIL processed 17 million tonnes of crude. The revenues for the refining business stood at Rs 73,689 crore, almost 45 per cent higher than Rs 50,531 crore in the corresponding quarter last year.
The refining segment's Earnings Before Interest and Tax (EBIT) stood at Rs 3,199 crore, a growth of 57.2 per cent over Rs 2,035 crore in the corresponding quarter last year. Exports of refined products stood at $10.2 billion as against $6.3 billion in the corresponding quarter last year.
Revenues and EBIT for the exploration and production business of RIL fell during the quarter. The segment revenue was Rs 3,894 crore for the quarter, a drop of 16.5 per cent as against Rs 4,665 crore in the corresponding quarter last year. The segment EBIT stood at Rs 1,473 crore, a drop of 23.3 per cent over Rs 1,921 crore in the corresponding quarter last year.
“Lower production from the KG-D6 and PMT blocks resulted in lower oil and gas revenue and (was) partly offset by higher crude oil price realisation. EBIT margins remains flat as compared to trailing quarter but were lower on a year-on-year basis,” the company said in its statement.
The company produced 1.41 million barrels of crude oil and 156.2 billion cubic feet (BCF) of natural gas from KG-D6 during the quarter, a drop of 41 per cent and 18 per cent respectively, as against the corresponding quarter last year.
Gas production during the quarter from Panna-Mukta declined by 1 per cent to 17.5 BCF, while crude oil production from the block decreased by 14 per cent to 2.7 million tonnes. For the same period, gas production from Tapti reduced by 27 per cent to 20.1 BCF. Condensate production also declined by 0.3 million barrels. The company attributed the drop to natural decline.
Petrochemicals Business
Petrochemicals business reported a 32.1 per cent increase in revenues for the quarter, at Rs 18,366 crore. “Increase in volume accounted for 6.5 per cent growth in revenue while higher prices accounted for 25.6 per cent growth in revenue,” RIL said in its statement.
The segment EBIT grew by 7.9 per cent to Rs 2,215 crore as against Rs 2,053 crore in the corresponding quarter last year.
RIL's stock closed almost 1 per cent higher, at Rs 882.15, on the Bombay Stock Exchange Monday.
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