India's Reliance Industries profit surges on higher refining margin

INDIA'S Reliance Industries on Friday (Jul 22) reported a 46.3 per cent jump in June-quarter profit, as cheaper Russian crude and strong demand for fuel boosted refining margin at its dominant oil-to-chemical business.

Private refiners like Reliance have stepped in to purchase cheaper Russian crude as Western buyers shun it following Moscow's invasion of Ukraine.

The company has also boosted fuel exports, especially to European countries grappling with shortages due to the sanctions on major producer Russia.

"Geopolitical conflict has caused significant dislocation in energy markets and disrupted traditional trade flows. This along with resurgent demand has resulted in tighter fuel markets and improved product margins," said Mukesh Ambani, chairman and managing director, Reliance Industries.

Refining margins for diesel, gasoline and jet fuel in Asia hit a record high in June.

Consolidated revenue from the oil-to-chemical business - comprising the world's biggest refining complex at Jamnagar and petrochemicals plants - surged 56.7 per cent to 1.62 trillion rupees.

The conglomerate said consolidated profit in the June quarter rose to 179.6 billion rupees (S$3.1 billion) in the 3 months ended June 30 compared with 122.7 billion rupees a year earlier.

Reliance's telecom unit, Jio, reported a near 24 per cent jump in net profit, while gross revenue at its retail unit, the country's biggest, surged 52 per cent. REUTERS