MOSCOW (MRC) -- Reliance Industries Ltd, operator of the world’s largest oil refining complex, reported first quarter profit that beat analysts’ estimates and rose the most in a year after refining margin widened, according to Hydrocarbonprocessing.
Net income, excluding that of units, rose 5.5% to 56.5 billion rupees (USD936 million), or 17.50 rupees a share, in the three months ended June from a year earlier, Mumbai-based Reliance said on July 19. That exceeded the 53.7 billion-rupee (USD0.891 billion) median profit estimate of 25 analysts compiled by Bloomberg. Sales rose 10% to 963.5 billion rupees (USD15.98 billion).
The company controlled by billionaire Mukesh Ambani depends on earnings from its two refineries to boost profit as natural gas production from its biggest deposit remains near the lowest in four years. Higher profit is crucial for Reliance which is spending 1.8 trillion rupees (USD0.030 trillion) to expand its polyester, petrochemicals, refining and natural gas businesses and starting a new telecommunications service next year.
We remind that last year, as MRC informed previously, RIL announced that it would invest over Rs 100,000 crore in expansion of its petrochemical capacities and adding value to its refining business. Besides, in October 2012, the company unveiled its plans to expand capacity at its refineries in the western state of Gujarat.
Reliance is also building one of the world’s largest ethylene crackers taking advantage of refinery integration at Jamnagar. This project will be commissioned in H2-2016 and would nearly double the ethylene capacity to 3.3 mln tpa.
Reliance Industries is one of the world's largest producers of polymers. The company's polymer production in 2010-11 (polypropylene, polyethylene and polyvinyl chloride) made 4,094 kilo tonnes.
MRC