India’s Biggest Refiner with Record Profits Reliance Industries Boost Results Despite Oil-Price Slump
Reliance Industries, operator of the world’s largest refinery complex, announced record profits: Especially higher margin gasoline and petrochemical products helped the company to counter the effects of falling oil prices, speakers explained.
In total, Reliance achieved a consolidated turnover of US $ 44.7 billion, as the low price for crude resulted in price declines for refinery products. Yet, as these prices fell less sharply, the operating performance from the refining and petrochemicals business resulted in higher profits: Operating profit increased by 17% on year on year basis to US $ 6.7 billion.
Commenting on the results, Mukesh D. Ambani, Reliance Chairman and Managing Director said: “FY 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. Our refineries sustained double-digit GRMs and record levels of utilization through the year. 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.”
Crude oil price for 2016 averaged at $ 45.6 per barrel in FY16, a fall of 45 % compared to the previous year. With decrease in oil and product prices, exports from India were lower by 35.8 % at $ 22.2 billion.