RIL net spurts on record margins

PAT at Rs 6,222 cr, up 4.4% year-on-year

Led by record gross refining margins and refining segment EBIT, Reliance Industries reported a 4.4 per cent increase in consolidated net profit for the first quarter ended June 30, 2015, at Rs 6,222 crore as against Rs 5,957 crore in the same quarter of the previous fiscal.

The company recorded gross refining margins of $10.4/barrel, its highest in the last six years as against $10.1/bbl in Q4 of FY15, and $8.7 in Q1 of FY15. Strong gasoline cracks led by robust demand growth, lower energy cost, and favourable crude differentials helped boost refining margins, the company said.

Refining segment EBIT during the quarter increased 37.7 per cent to Rs 5,252 crore, as against Rs 3,814 crore in the first quarter of the previous fiscal.

Revenues for the quarter, however, declined 23 per cent to Rs 83,064 crore as against Rs 10,7905 crore last year. The decline in revenues was led by the 43.5 per cent (YoY) decline in benchmark Brent crude prices.

Exports from Indian operations were lower by 44.9 per cent at Rs 36,717 crore as against Rs 66,600 crore in the same period last year due to lower product prices in line with lower crude oil prices.

“Our financial performance reflects the benefits of integrated hydrocarbon chain activities in a benign oil price environment. The sharp increase in demand for transportation fuels helped us realise strong refining margins,” RIL chairman Mukesh Ambani said.
Utilisation at 107%

Revenues from the refining and marketing segment during the quarter decreased 29.9 per cent to Rs 68,729 crore as against Rs 98,081 crore. During the quarter, Jamnagar refineries processed 16.6 million tonnes (mt) of crude with an average utilisation of  107 per cent.

In comparison, average utilisation rates for refineries globally in Q1 of FY16 were 88 per cent in North America, 82.1 per cent in Europe, and 82.3 per cent in Asia.

As far as petrochemicals business is concerned, revenues during the quarter declined 17.9 per cent to Rs 20,858 crore as against Rs 25,398 crore in Q1 of FY15 with product prices reflecting lower crude and feedstock prices on a YoY basis.

Shale gas revenues also witnessed a decline during the quarter compared with the same quarter last year. Revenues from the segment stood at Rs 854 crore compared with Rs 1,617 crore.

In organised retail, the revenues stood at Rs 4,698 crore, a rise of 17.5 per cent over last year.

EBIT margins for the business also improved marginally to 2.4 per cent.