Thaindian News

Mumbai, July 24 (IANS) The net profit of oil-to-petrochemicals major Reliance Industries (RIL) dropped 11.5 percent to Rs.3,636 crore ($759 million) for the quarter ended June 30, compared to the Rs.4,110 crore it netted in the corresponding period last fiscal.
In a regulatory statement Friday, the company said it has registered a turnover of Rs.33,309 crore ($7 billion), a decrease of 22.6 percent from the Rs.43,050 crore it earned in the year-ago period.

RIL, ranked 117 in on the global list of Fortune 500 companies in 2009 based on profits, said a decrease in oil prices had hit revenues, though this was partially offset by higher volumes.

The Reliance scrip ended 1.2 percent down at Rs.2,013.75 Friday on the Bombay Stock Exchange (BSE). The results were announced after the markets closed.

Refining, which constituted about 65 percent of RIL’s revenue for the first quarter of 2009-10, was impacted with earnings per barrel dipping to $7.5 from $15.7 a barrel in the corresponding quarter the previous fiscal.

However, lower refining margins can be offset in future with profits from gas production at the company’s Krishna Godavari (KG) basin finds.

“Timely completion of the deep-water, oil and gas KG D6 block will play a significant role in shaping the future growth at RIL,” said RIL chairman and managing director Mukesh Ambani.

RIL currently supplies about 30 million units gas to 15 fertiliser, 15 power and two steel companies. Supply of an additional five million units is expected to commence soon.