Reliance Q2 chem EBIT static on margin cut, cracker shutdowns

31 October 2010 04:37  [Source: ICIS news]

BANGALORE (ICIS)--India's Reliance Industries Ltd’s (RIL) petrochemical division second quarter earnings before interest and tax (EBIT) are almost static at Indian rupees (Rs) 22bn ($496.5m) from the year ago period on the negative impact of margin reduction in some products and cracker shutdowns, it said.

Segment revenue for the quarter rose 13.2% to Rs151bn, it said in a statement to the Bombay Stock Exchange over the weekend.

The negative impact of margin reduction in polypropylene-propylene and most of the products in polyester and ethylene chain had offset the positive impact of margin improvement in polyvinyl chloride (PVC), it added.

RIL’s overall net profit for the quarter rose 28% to Rs 49bn year on year due to improved refining margins and high operating rates at all the manufacturing facilities, it said.

While the company’s second quarter turnover rose 23% to Rs 599bn year on year, it was marginally lower than the revenue of Rs610 bn that it recorded in the first quarter of this fiscal.

“Improved refining margins and high operating rates at all our manufacturing facilities led to a record quarter,” RIL chairman and managing director Mukesh Ambani said.

The company’s ethylene production during the quarter decreased 11% due to cracker shutdowns at its Hazira, Nagothane and Gandhar sites while propylene output fell by 8%, it added.

Planned shutdowns of paraxylene (PX) lines at RIL’s Jamnagar and Patalganga had reduced output of fibre intermediates including PX, purified terephthalic acid (PTA) and monoethylene glycol (MEG) by 5%, the statement added.

Polyester production volumes increased by 2% during the quarter.

($1 = Rs44.31)

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By: Priya Jestin

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