Higher gross refining margins have helped Reliance Industries (RIL) offset lower oil and gas production and post its highest net profit ever. Meeting forecast, RIL reported a 15.8 per cent rise in its net profit at Rs 5,703 crore for the July-September quarter of 2011. Its net profit for the corresponding previous quarter stood at Rs 4,923 crore.

“RIL’s net profit for the quarter is the highest profit for any quarter in the company’s history. It is largely in line with expectation, both on the revenue and net profit side. However, the positive surprise came from the “Other Income” segment, as it had surely benefited from the weakening rupee and treasury income on the ample cash balances on the balance sheet,” said Jagannadham Thunuguntla, strategist and head of research, SMC Global Securities Limited.

During the quarter, RIL’s gross refining margins (turning every barrel of crude oil into fuel), was up 27.8 per cent at $10.1 a barrel against $7.9 a year earlier, though it was slightly below expectation. RIL refineries processed a record 34.1 million tonnes of crude oil, achieving a utilisation rate of over 110 per cent during the first half. “The increase in profits was largely driven by improved performance in the refining and petrochemicals business. All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110 per cent,” Mukesh Ambani, chairman and managing director, RIL, said in a statement. For more visit: Business Standard

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