Improved gross refining margin – the highest in the last eight quarters – and increased profits from its petrochemical's business has led to a 14 per cent rise in Reliance Industries Ltd's (RIL) net profit for the fourth quarter of fiscal 2011.
Net profit for the quarter ended March 31, 2010 stood at Rs 5,376 crore (Rs 4,710 crore).
RIL's turnover for the quarter grew by 25 per cent to Rs 75,238 crore, from Rs 60,267 crore in the corresponding quarter last year.
“Global economic growth, emerging markets demand and tightness in the markets led to recovery in refining margins and record petrochemical earnings,” said Mr Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, in a statement from the company.
Exports during the fiscal 2011 grew by 33 per cent to Rs 1,46,667 crore (Rs 1,10,176 crore).
Refining segment
For the quarter, RIL's gross refining margin (GRM) stood at $9.2 per barrel as against $7.5 per barrel in the same quarter last year. Revenues in the refining and marketing segment for the fourth quarter stood at Rs 62,704 crore (Rs 51,250 crore), up 22 per cent.
Earnings before interest and tax from this segment grew 26 per cent to Rs 2,509 crore; EBIT for the fiscal grew 53 per cent to Rs 9,172 crore.
The company processed 16.7 million tonnes of crude oil reflecting a utilisation rate of more than 100 per cent.
GRM for the 2010-11 fiscal stood at $8.4/barrel as against $6.6/barrel in the previous year. The company processed 66.7 million tonnes of crude during the fiscal which it said is the highest in its history.
Oil and Gas E&P segment
The Oil and Gas (Exploration and Production) segment revenues dipped by 5 per cent during the quarter at Rs 4,104 crore (Rs 4,318 crore). For the full fiscal, segment revenues were up 36 per cent at Rs 17,250 crore.
Crude oil and gas production from KG-D6 in the fiscal stood at 8 million barrels and 720 billion cubic feet, a growth of 98 per cent and 42 per cent respectively. During the fiscal, RIL achieved sales of 20.2 billion cubic meters.
Crude oil produced from the block was sold to domestic refineries and achieved an average realisation of $85/barrel. RIL did not provide the quarterly gas production figures for KG-D6.
Petrochemicals
Fourth quarter revenue in the petrochemicals segment was up 18 per cent, at Rs 18,194 crore (Rs 15,448 crore). Full year revenue for the segment stood at Rs 63,155 crore (Rs 55,251 crore), a growth of 14 per cent.
“Performance of the segment reflects the strong demand across the petrochemical range during the quarter,” said the company in its statement.
The company announced a dividend of Rs 8 per fully paid up equity share of Rs 10 each, aggregating to Rs 2,772 crore. Its shares closed 1.39 per cent higher on BSE at Rs 1,039.95 on Thursday; the results were announced after the stock markets closed.