Reliance Industries Ltd (RIL) today reported nearly 15.8% rise in net profit at Rs 5,703 crore during July-September. This is RIL’s highest quarterly profit since 2007 and it is attributed to higher earnings from oil refining and petrochemicals business.
RIL said its showpiece Krishna Godavari basin D6 gas fields output dropped 20% to 147.2 billion cubic feet or an average of just over 45 million standard cubic meters per day during the quarter “mainly due to reservoir complexity”. This led to revenue from oil and gas exploration business fall 17.2% to Rs 3,563 crore and pre-tax segment profit by 10.2% to Rs 1,531 crore.
But this was more than made up by good performance by its twin adjacent refineries at Jamnagar in Gujarat with a combined capacity of 1.24 million barrels a day.
RIL said it earned $ 10.1 on turning every barrel of crude oil into fuel in the quarter as compared to $ 7.9 per barrel gross refining margin (GRM) a year ago. Higher GRM helped the firm earn 40.3% higher pre-tax profit of Rs 3,075 crore.
The company’s refining margins were better than Singapore average of $ 6.18 per barrel.
Higher volumes and prices helped the firm’s petrochemical business post a 10.2% rise in pretax profit to Rs 2,422 crore.
RIL Chairman & Managing Director Mukesh D Ambani said, “The increase in profits was largely driven by improved performance in the refining and petrochemicals business. All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110%… RIL has strong balance sheet and sustained earning base to pursue growth opportunities.”