Business & Economy

RIL reports 27.8 % rise in net profit in Q2

NetIndian News Network

New Delhi, October 30, 2010

Energy and petrochemicals major Reliance Industries Limited (RIL) today reported a 27.8 per cent increase in its net profit to Rs 4923 crore in the second quarter (Q2) of 2010-11, ended September 30, 2010, from Rs 3852 crore in the same quarter of the previous year.

The company said the performance was achieved on the strength of the higher quantities of oil, gas and condensate production from the Krishna Godavari (KG) D6 field.

It said that, however, this growth was partly offset by lower production from Panna-Mukta and Tapti fields.

A press release from the company said that it had registered its highest ever half-year revenue, profit before depreciation and tax (PBDIT) and net profit.

Net profit had increased in the first half of this year by 30 per cent to Rs 9774 crore (4 2.2 billion), while turnover had gone up by 48.8 per cent to Rs 120,969 crore.

Exports were up 55.5 per cent to Rs 66,936 crore and PBDIT by 34.8 per cent to a record level of Rs 20, 132 crore. It said the gross refining margin was $ 7.9/bbl for the second quarter and $ 7.7/bbl for the first half ended September 30.

"Improved refining margins and high operating rates at all our manufacturing facilities led to a record quarter. We are focused on identifying opportunities that leverage India’s unique demographic and market potential," RIL Chairman and Managing Director Mukesh D Ambani said.

According to the release, the current production from the KG D6 block is about 58 MMSCMD taken from 16 wells of D1/D3 and 5 wells of D26 fields.

For the half year ended 30 September 2010, production from KG D6 was 583,348 tonnes of crude oil, and 10,699 MMSCM of natural gas, a growth of 163% and 122% respectively as the oil and gas production was under ramp up during the corresponding period of the previous year. During the period, production of gas condensate stood at 35,742 tonnes.

It said that, in line with the Government of India?s gas utilization policy, Gas Sale and Purchase Agreements (GSPAs ) for KGD6 gas had been executed and made operational with about 57 customers in the fertilizers, power, city gas distribution, steel, LPG, refinery and petrochemical sectors.

During the second quarter, GSPAs with three power plants were signed, it said.

The company said its international business in the oil and gas segment comprised 14 blocks with acreage of over 102,385 square kilometers in Peru, Yemen, Oman, Kurdistan, Colombia, East Timor and Australia.

RIL said that, during the half year ended September 30, its refineries had processed 33.8 million tonnes of crude oil, reflecting an average utilization rate of 109%. This was the highest operating rate in the world, it said.

Revenue for the Refining and Marketing segment increased by 56.6% from Rs 63,998 crore to Rs 100,203 crore (US$ 22.3 billion) mainly due to incremental volumes coming from SEZ refinery.

In the petrochemicals segement, revenue increased during the half year ended 30 September by 15.8% from Rs 25,047 crore to Rs 28,999 crore.