RIL’s O2C business logs 75% rise in Q1 revenues on high crude prices

The oil-to-chemical business of Reliance Industries Ltd (RIL) has registered a massive 75.2 per cent increase in its revenues at Rs 1.03 lakh crore for the April-June quarter.

The company attributed the rise in revenues to the increase in product prices on the back of high crude oil prices.

“Segment Revenues for 1Q FY22 increased by 75.2 per cent Y-o-Y to Rs 103,212 crore ($ 13.9 billion) primarily on account of sharp increase in product prices on the back of higher Crude prices,” said a company statement.

Operational flexibility and responsiveness to market dynamics continue to play a significant role in Reliance’s O2C performance, it said

Further, weakness in domestic demand with onset of second wave of Covid during the quarter resulted in increased export placement, supporting high utilisation rates across manufacturing facilities.

Total throughput increased from 17.8 MMT to 19.0 MMT on Y-o-Y basis. Cracker operating rates was at 95 per cent, marginally lower on scheduled shutdown of ROGC. Downstream margins continued to remain strong with product deltas near or above 5-year averages, it said.

RIL further said that its O2C business maintained its market share in domestic markets. In addition, O2C continues to strategically place its products in export markets.