March quarter net profit rises 12.7%; GRMs at 10.8/bbl double that of Singapore benchmark
Reliance Industries Ltd (RIL) on Monday reported a 12.7% year-on-year jump in standalone net profit to hit a record Rs 8,151 crore for the March quarter.
The rise was fuelled by higher refining and petrochemical margins, thanks to lower crude oil prices. Analysts had estimated a net profit of Rs 8,010 crore, according to the data by Reuters.
Revenue on a standalone basis rose 37.7% to Rs 74,598 crore from the year-ago period on the back of higher volumes in petrochemicals and higher prices of petrol and diesel.
The company earned $11.5 per barrel on turning every barrel of crude oil into fuel in the fourth quarter as compared to a gross refining margin (GRM) of $10.8 per barrel in the same period a year before. Its GRMs outperformed the benchmark Singapore complex margins by $5.1/bbl.
RIL Jamnagar refineries processed 17.5 million tonne (mt) in the March quarter, marginally lower quarter on quarter.
Refining and petrochemicals contribute approximately 90% to the Mukesh Ambani-led company's overall revenue and profit.
"With ongoing projects our portfolio will become significantly more robust and integrated, securing long-term profitable growth," Ambani said.
For the full fiscal 2017, the company generated its highest-ever annual profit at Rs 29,901 crore, which is 18.8% higher than the previous year's figure.
The company operates two refineries in Gujarat, It has a combined capacity of 1.24 million barrels a day.
During the quarter, Reliance also completed world's largest and most complex ethane project. It commissioned ethane receipt and handling facilities and commenced ethane cracking at its Dahej Manufacturing facility in Gujarat in less than three years, the company said.
The shale gas business performance improved sequentially on the back of improving prices and higher volumes. Unit realisation improved by 18% quarter on quarter and revenue grew by 20% while earnings before interest, depreciation and tax rose 25% on sequential basis.
However, full year performance remained impacted by lower volumes and also weak prices in the previous quarters. Overall volumes were negatively impacted by the development slowdown and natural decline in existing wells, Reliance said in a statement.
The company said that near-term outlook for natural gas is improving while market re-balancing is supported by growing demand from LNG and Mexico exports, and slow growth in supplies. The medium-term outlook for oil is positive, it said.
Improving demand and production cut compliance by Opec and Non-Opec should ease inventory overhang, it said.
The business environment remains challenging, but calendar 2017 outlook is more constructive compared to last year, it said.
-With agencies
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RIL Jamnagar refineries processed 17.5 million tonne (mt) in the March quarter, marginally lower quarter on quarter.
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