RIL Q3 net up 39% to record Rs 7,290cr

Reliance Industries’ (RIL’s) third quarter (Q3FY16) consolidated profit rose 39% to a record Rs 7,290 crore ($1.1 billion), boosted by the highest refining margins in seven years. The company’s refineries earned $11.5 on each barrel of crude processed, as against $7.3 a year earlier. RIL’s earnings beat analyst estimates of Rs 7,010 crore, according to Bloomberg.

RIL’s Q3FY16 revenues declined 24% to Rs 73,341 crore ($11.1 billion) as the benchmark (Brent crude) oil prices declined 43% in the last one year. Exports fell 38% to Rs 36,564 crore due to lower product prices.

The revenues from the company’s mainstay – refining and marketing – decreased 30% to Rs 57,385 crore, but gross profit from this segment doubled to Rs 6,491 crore. This segment accounted for 78% of RIL’s revenue and 67% of its gross profit in the December quarter.

“Refining business delivered yet another record performance on the back of a seven-year high refining margins and highest-ever crude throughput,” said Mukesh Ambani, CMD, RIL, which operates the world’s biggest oil-refinery complex at Jamnagar in Gujarat. Petrochemicals, the second biggest contributor to revenues, declined 16% to Rs 19,398 crore in the third quarter through December from a year earlier but gross profit increased 28% to Rs 2,639 crore. Revenues from oil & gas fell 38% to Rs 1,765 crore due to lower oil and gas prices in domestic and US shale segments. In shale gas, the company said it will cut its investment from $900 million last year to $500 million this year.

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