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Tuesday, July 31, 2001

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Reliance Petro Q1 profit up 52 p.c. at Rs. 456 cr.

MUMBAI, JULY 30. Reliance Petroleum (RPL) has achieved an excellent performance during the quarter ended June 30, 2001, with sales increasing by 48 per cent at Rs. 8,865 crores ($ 1,884 million), and a net profit by 52 per cent at Rs. 456 crores ($ 97 million).

During the quarter, RPL achieved a record capacity utilisation of 108 per cent . This is in sharp contrast to the capacity utilisation rates of other refineries, both in India and abroad, - an average of 85 per cent for other Indian refineries, 92 per cent for North America , 86 per cent for Europe and 85 per cent for Asia Pacific region.

The total paid up equity share capital stood at Rs. 4,753 crores ($1,010 million), against Rs. 4,300 crores for the corresponding previous quarter. Earnings per share (EPS) for the quarter are Re. 0.96 ($ 0.02), and cash earnings per share Re. 1.38 (0.03). The company's contribution to the national Exchequer, in the form of various taxes and duties, stands at Rs. 2,237 crores ($ 476 million), against Rs. 2,059 crores for the corresponding previous quarter.

RPL processed 7.3 million tonnes of crude during the quarter, as against 5.8 million tonnes during the corresponding previous quarter.

Exports during the quarter at Rs. 1,440 crores ($ 306 million), were the highest in the Indian corporate sector. With its products having been exported across the globe, including to the most quality conscious and discerning markets, such as the U.S., RPL says that it has demonstrated the international quality of its products, and its operational flexibility and logistics strengths. RPL's increased exports during the quarter were partly attributable to strong demand, and firm prices, for gasoline in the West, including in the U.S.

During the quarter, RPL has concluded India's largest ever syndicated foreign currency term loan facility for $ 750 million (Rs. 3,500 crores).

Commenting on the results, Mr. Anil D. Ambani, Managing Director, Reliance Petroleum said ``RPL's high capacity utilisation, its ability to supply products to the most discerning global markets, and the demonstrated flexibility to alter the product mix to take advantage of niche opportunities, provide a unique competitive edge to RPL.''

With strong cash flows from these world class refining assets, the future growth strategy would focus on securing a leadership position to enhance overall shareholder value, he said.

During the quarter, RPL also benefited from strong demand, and the firm trend in prices, for gasoline, in the U.S, and Europe.

Overall domestic consumption growth for petroleum products remained sluggish during the quarter. LPG and gasoline recorded satisfactory growth of 12 per cent and 9.5 per cent respectively, while middle distillates consumption declined by 4.3 per cent . Overall product growth showed a decline of 0.5 per cent .

However, the average capacity utilisation for the other Indian refineries, excluding RPL, was just 85 per cent , which largely restored the demand supply balance.

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