Thursday, 29 September, 2022

India’s Reliance reports highest-ever refining revenues

MUMBAI: Indian oil-to-telecoms giant Reliance Industries reported earnings that missed analyst estimates Friday, despite a strong performance by its core oil-refining business.

The conglomerate, which is owned by Asia's richest man Mukesh Ambani, reported a net profit of 179.55 billion rupees ($2.25 billion) between April and June, 46.3 percent higher than the same period last year, reports AFP.

Revenues from operations increased 54.54 percent year-on-year to 2.23 trillion rupees, aided by both its legacy energy business and newer ventures like telecoms.

Revenues from Reliance's oil to chemicals (O2C) business -- which accounts for 60 percent of total income -- jumped 56.68 percent year-on-year to 1.62 trillion rupees, its highest ever.

A 65 percent year-on-year increase in brent crude oil prices in the quarter primarily contributed to the strong performance, the company said.

Imports of Russian crude at discounted rates have likely helped Reliance's refining margins as energy demand surged.

Revenues from the energy giant's smaller oil and gas exploration and production business jumped 183 percent year-on-year to 36.25 billion rupees, helped by higher gas prices.

"Geopolitical conflict has caused significant dislocation in energy markets and disrupted traditional trade flows," chairman and managing director Ambani said in a statement

"Despite significant challenges posed by the tight crude markets and higher energy and freight costs, O2C business has delivered its best performance ever," the billionaire added.

Strong supply chain infrastructure helped insulate customers on Reliance's retail, grocery and digital platforms from inflation in the quarter, Ambani said.

Telecoms arm Reliance Jio saw revenues rise 23.6 percent to 275.27 billion rupees and added 9.7 million subscribers, reversing three consecutive quarters of its subscriber base shrinking.

Revenues from Reliance's retail business hit a fresh all-time high of 585.54 billion rupees, helped by the opening of 792 new stores in the quarter.

Reliance's multi-billion-dollar fortune has been powered by oil and petrochemicals businesses, but the company has diversified into new areas including telecoms and retail in recent years.