Reliance registers highest ever exports for first quarter

• On July 6, 2012 RIL selected Technip as a technology supplier and engineering contractor to implement its Refinery Off-Gas Cracker (ROGC) project. This is part of the expansion project being executed at RIL’s world-scale Jamnagar refining and petrochemical complex in Gujarat, on the West Coast of India. The ROGC plant will be amongst the largest ethylene crackers in the world and will be using refinery off-gas as feedstock. The products from the plant will be utilized for the new downstream petrochemical plants being built at Jamnagar.
• Reliance Exploration and Production DMCC, a wholly owned subsidiary of Reliance has completed the transaction for divestment of its 80% working interest and operatorship in the production sharing contracts (PSCs) for Rovi and Sarta Blocks in the Kurdistan Region to the subsidiaries of Chevron Corporation. This is in line with its portfolio rationalization strategy of international assets.
• RIL has signed a US$ 2 billion equivalent loan with nine banks covered by Euler Hermes Deutschland AG. (“Euler Hermes”) on 07 May 2012 at Berlin, Germany. The loan will be primarily used to finance goods and services procured from German suppliers as part of RIL's petrochemicals expansion projects at Jamnagar, Hazira, Silvassa and Dahej in India.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “RIL has improved its earnings profile as profits from operations were higher on a sequential basis on the back of volume growth in the refining business. We have commenced our next phase of capital investments in the refining and petrochemical segments to enhance earnings and value of our core energy businesses.”

On a Y-o-Y basis, revenue increased by 18.9% from Rs. 18,366 crore to Rs. 21,839 crore ($ 3.9 billion). Increase of prices accounted for 10.8% growth while higher sales volume accounted for 8.1% of the overall increase. On a Q-o-Q basis, revenue increased by 2.0% wherein increase in prices accounted for 6.1% growth partially offset by lower sales volume which was down by 4.1%.

EBIT margins for the quarter ended 30th June 2012 were at 8.0% as compared to 10.2% in the trailing quarter and 12.1% compared to corresponding period of the previous year. On a Y-o-Y basis, EBIT margin reduced due to lower polyester and polyester intermediates deltas which was partly offset by increase in delta of polymer products. On a Q-o-Q basis, EBIT margins reduced due to lower PX and PP deltas and lower volumes across all products except in the case of PTA where it remained flat.

Click here to read more details:

Reliance Industries Limited