With falling crude oil prices boosting the company’s refining and petrochemical margins, India’s largest private sector energy company–Reliance Industries Ltd on April 22nd, 2016 reported its highest quarterly net profit in eight years at Rs 7,398 crores representing a 16% jump in earnings for the three-month period ended March 31.
RIL is the operator of the world’s biggest oil-refinery complex at Jamnagar in Gujarat.
“Financial year 2015-16 has been a year of outstanding achievement for our downstream hydrocarbon businesses, notwithstanding persisting global economic uncertainty. Refining and petrochemicals delivered record operating and financial performances,” Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said while commenting on the company’s results.
Stating that RIL’s refineries sustained double-digit GRMs and record levels of utilization through the year, Ambani said, “Our balanced petrochemical portfolio, across products and feedstocks, helped capture the benefit of vastly improved naphtha cracking economics and favourable polymer markets.”
“Reliance Retail continued its path of profitable expansion while maintaining a robust revenue growth of 23% during the year…Looking ahead, we are focused on ensuring a flawless start- up and stabilization of the new growth platforms across our hydrocarbon and consumer businesses…The commercial roll-out of our Jio services this year will digitally enable a billion Indians and propel growth for India and Reliance.”
The company’s consolidated net profit for the three month period ending March 31, 2016 stood at Rs 7,398 crore or 16% higher than Rs 6,381 crore in the corresponding period a year ago.
RIL’s standalone net profit was 17.25% higher at Rs 7,320 crore.—the highest quarterly net profit for RIL since it clocked Rs 8,079 crore net profit in the third quarter of 2007-08.
The company earned a gross refining margin or GRM of $10.8 a barrel or the earning for turning every barrel of crude oil into fuel in the fourth quarter of 2015-16. This is significant when compared to a gross refining margin of $10.1 per barrel a year ago and also outperformed Singapore benchmark by $3.1 a barrel.
RIL’s sales, however, dropped 12% to Rs 64,569 crore in January-March quarter.
For the entire year (2015-16), RIL registered a record annual net profit at Rs 27,630 crore—higher by 17.2% over Rs 23,566 crore in the corresponding period of the previous fiscal.
The company’s turnover was, however, down 23.8% at Rs 2,96,091 crore on lower oil prices.
During the year RIL continued the re-commissioning of its retail petroleum network. Over 950 outlets are now operational. RIL is focused on offering enhanced customer experience and unique value propositions to improve market effectiveness.