RIL suffers quarterly profit slide of 23%; refining margins slip
Reliance Industries on Thursday reported a 23 per cent drop in its second quarter net profit as compared to last year's figure, which was boosted by income from sale of US shale gas assets. Consolidated net profit in July-September at Rs 7,206, or Rs 24.4 per share, was 22.9 per cent lower than Rs 9,345 crore, or Rs 31.7 per share, earning in the same period a year ago. After excluding the exceptional item, the net profit was up 43.1 per cent. Last year, the company had sold EFS Midstream LLC for Rs 4,574 crore.
"The company has achieved outstanding second quarter results with strong refining business performance and record petrochemicals segment earnings," RIL Chairman and Managing Director Mukesh Ambani said. Refining business sustained high profitability in a tough environment highlighting efficiency of RIL's refining assets, dynamic response to market trends and robust operations. Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins, he said.
The owner of world's largest refining complex saw profits from the refining business dip 9.4 per cent as it earned $10.1 on turning every barrel of crude oil into fuel in the second quarter, lower than $10.6 per barrel gross refining margin in the same period of last fiscal. RIL is using profits from its core refining and petrochemicals business to help its new telecommunications venture that started operations last month.
Ambani said he was delighted and humbled by the response the company's foray into telecom business under Jio brand has got. "Jio is built to empower every Indian with the power of data," he said. "Our projects in the hydrocarbon chain are at advanced stages of mechanical completion and precommissioning activities. These projects will further strengthen our position as a leading operator in the energy and materials businesses," he added.