Reliance Industries Limited Reported Its Quarter Financial Performance
OREANDA-NEWS. Reliance Industries Limited (RIL) reported its financial performance for the quarter / year ended 31st March, 2013. Highlights of the audited financial results as compared to the previous year are:
(In ' Crore) |
4Q FY13 |
3Q FY13 |
4Q FY12 |
% Change wrt 4Q FY12 |
FY13 |
FY12 |
% Change wrt FY12 |
Turnover |
86,618 |
96,307 |
87,833 |
(1.4%) |
371,119 |
339,792 |
9.2% |
PBDIT |
10,068 |
10,113 |
8,859 |
13.6% |
38,785 |
39,811 |
(2.6%) |
Profit Before Tax |
7,120 |
6,850 |
5,432 |
31.0% |
26,284 |
25,750 |
2.1% |
Net Profit |
5,589 |
5,502 |
4,236 |
31.9% |
21,003 |
20,040 |
4.8% |
EPS O |
17.3 |
17.0 |
12.9 |
34.1% |
64.8 |
61.2 |
5.9% |
Highlights of Year Performance
• Revenue (turnover) increased by 9.2% to 371,119 crore (USD 68.4 billion)
• Exports increased by 15% to 239,226 crore (USD 44.1 billion)
• PBDIT decreased by 2.6% at 38,785 crore (USD 7.1 billion)
• Profit Before Tax increased by 2.1% at 26,284 crore (USD 4.8 billion)
• Cash Profit at 30,505 crore (USD 5.6 billion)
• Net Profit increased by 4.8% at 21,003 crore (USD 3.9 billion)
• Gross Refining Margin at USD 10.1 /bbl for the quarter and USD 9.2/ bbl for the year ended 31st March 2013
• Dividend of 90%, payout of 3,092 crore (USD 570 million)
Highlights of Year Performance (RIL Consolidated)
• Revenue (turnover) increased by 10.8% to 397,062 crore (USD 73.1 billion)
• PBDIT increased by 0.5% to 40,912 crore (USD 7.5 billion)
• Profit Before Tax increased by 3.2% to 26,150 crore (USD 4.8 billion)
• Cash Profit decreased by 1.5% to 32,115 crore (USD 5.9 billion)
• Net Profit increased by 5.9% to 20,879 crore (USD 3.8 billion)
Corporate Highlights
• RIL was awarded the prestigious 'International Refiner of the Year' 2013 at HART Energy’s 27th World Refining & Fuel Conference held recently at San Antonio, Texas, USA. The award was presented to Reliance for producing cleaner, higher-quality gasoline and diesel fuel, operating with the highest international refining standards and innovative use of resources in diverse environments and for innovation, global vision, and ability to chart future changes.
• Reliance Sibur Elastomers Private Limited (RSEPL), a joint venture between RIL and SIBUR began construction of their new butyl rubber plant, in Jamnagar. The new plant will be India’s only manufacturer of butyl rubber and the JV will be amongst the world’s top five manufacturers of butyl rubber. RIL and SIBUR signed a technology licence agreement facilitating use of SIBUR's proprietary butyl rubber production technology at the new facility. RIL will supply monomer and provide the JV with world-class infrastructure and utilities. Reliance has already started market seeding butyl rubber from SIBUR in India. The response is very encouraging.
• In September 2012, RIL and the Venezuelan state oil company, Petroleos de Venezuela, SA (PDVSA) signed a 15 year heavy crude oil supply contract and an MOU to further develop Venezuelan heavy oil fields. PDVSA will supply between 300,000 and 400,000 barrels per day of Venezuelan heavy crude oil to Reliance’s two refineries in Jamnagar under a 15-year crude oil supply contract. As per the MOU, Reliance will explore upstream options for joint participation in heavy oil projects of the Orinoco Oil Belt.
• RIL selected Fluor Corporation to provide project management services for its projects being executed at its refining and petrochemical complex in Jamnagar, India. These projects represent one of the largest investments globally.
• RIL selected Phillips 66’s E-Gas™ technology for its coke gasification facility. This facility will process petroleum coke & coal into synthesis gas. Phillips 66 will license the technology to RIL and also provide process engineering design and technical support relating to the gasification technology process area.
• RIL selected Technip as a technology supplier and engineering contractor to implement its Refinery Off-Gas Cracker (ROGC) project. This is part of the petrochemical expansion project being executed at Jamnagar, India. The ROGC plant will be amongst the world’s largest ethylene crackers and will be using refinery off-gas as feedstock. This plant will provide feedstock for new downstream petrochemical plants also being built at Jamnagar.
• RIL selected Foster Wheeler as an engineering and procurement services contractor for its Paraxylene project. This is part of the expansion project being executed at RIL’s world-scale Jamnagar refining and petrochemical complex in Gujarat, on the West Coast of India.
• Reliance Exploration & Production DMCC (REP DMCC), wholly owned subsidiary of RIL has received proceeds and completed the transaction for divestment of its 80% working interest and operatorship in the production sharing contracts (PSCs) for Rovi and Sarta blocks in the Kurdistan Region to the subsidiaries of Chevron Corporation.
• REP DMCC, a wholly owned subsidiary of RIL, has received proceeds on signing the completion documents for divestment of its 25% Working Interest in the Production Sharing Contract (PSC) for Yemen Block-9 with Medco Yemen Malik Ltd., a wholly owned subsidiary of PT Medco Energi Internasional Tbk of Indonesia.
• The Government of India, by its letter of 02 May 2012 has communicated that it proposes to disallow certain costs which the PSC relating to Block KG-DWN-98/3 entitles RIL to recover. RIL maintains that a contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any contract cost as defined in the PSC. RIL has initiated arbitration on this issue.
• The Board of Ex-Im Bank of the United States has voted to extend the single largest financing transaction of USD 2.1 billion to RIL. This includes a USD 1.06 billion direct loan and to guarantee a USD 1.06 billion JPMorgan Chase loan to the Company. The loan will be primarily used to finance goods and services procured from exporters and suppliers in the United States as part of Reliance's expansion projects at Jamnagar, Gujarat.
• RIL signed a USD 2 billion equivalent loan with nine banks covered by Euler Hermes Deutschland AG. ("Euler Hermes”) in May 2012. The loan will be primarily used to finance goods and services procured from German suppliers as part of the petrochemical expansion projects at Jamnagar, Hazira, Silvassa and Dahej in India.
• RIL priced a Rule 144A/Regulation S offering of USD 800 million 5.875% Senior Perpetual Notes (the "Notes”). The Notes shall rank pari passu with all other unsecured and unsubordinated obligations of the Company. The Notes have no fixed maturity date and the Company will have an option, from time to time, to redeem the Notes, in whole or in part, on any semi-annual interest payment date on or after February 5, 2018 at 100% of the principal amount plus accrued interest.
• The Scheme of Amalgamation of Reliance Jamnagar Infrastructure Limited (RJIL) with RIL ("Scheme”) has been sanctioned by the Honorable High Court of Gujarat at Ahmedabad vide its Order dated October 8, 2012. The Scheme became effective on 22nd October 2012, the appointed date of the Scheme being 1st April 2011.
• The Global Reporting Initiative (GRI) has awarded A+ level to RIL’s Sustainability Report 2011 - 12. This is the 7th consecutive year that RIL has received the highest application level on sustainability reporting. RIL is also the first Indian company to adhere to the GRI 3.1 Oil & Gas Sector Supplement, released in February 2012.
• Under the KG-D6 block enhancement plan, BP and RIL are planning to invest in a series of projects to develop around 4 trillion cubic feet of discovered natural gas resources from the block. At current international liquefied natural gas (LNG) prices, it would cost more than USD 50 billion to import this volume of gas into India. This plan, when implemented, would entail a potential total investment in excess of USD 5 billion over the next three to five years.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Reliance has delivered another year of strong operating performance in an environment of continued volatile economic conditions. The growth in earnings was largely driven by strong and improved refining margins during the year. Production growth from our investments in unconventional liquids-rich resource plays in North America has reinforced our confidence in creating long term value for our shareholders from this diversification. We are delighted to see our retail business achieving a milestone of annual revenue crossing 10,000 crore and will further strengthen our position in this sector. We are working on projects that form the foundation of our aspirations to become one of the world’s most competitive producers of petroleum and petrochemical products while developing consumer centric businesses in India”.
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