Reliance O2C Ltd., a petrochemicals segment of RIL posted its results for the first quarter ended June 30, 2021.
Q1 Results- QoQ
The segment’s EBITDA grew 7.2% to Rs 12,231 crores ($1.64 billion) for the period ended June 30, 2021 as against net profit of Rs 11,407 crores ($1.53 billion) for the previous quarter.
Net sales increased 2.1% to Rs 1,03,212 crores ($13.85 billion) during the period ended June 30, 2021 as compared to Rs 1,01,080 crores ($13.56 billion) during the previous quarter.
Q1 Results- YoY
The segment’s EBITDA grew 49.8% to Rs 12,231 crores ($1.64 billion) for the period ended June 30, 2021 as against net profit of Rs 8,166 crores ($1.09 billion) for the prior-year quarter.
Net sales increased 75.2% to Rs 1,03,212 crores ($13.85 billion) during the period ended June 30, 2021 as compared to Rs 58,906 crores ($7.9 billion) during the prior-year quarter.
“The outbreak of corona virus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Group’s operations and revenue were impacted due to COVID-19,” the company said.
“In our O2C business, we generated strong earnings through our integrated portfolio and superior product placement capabilities,” says Mukesh Ambani, chairman and managing director at Reliance.
In the polymers business, polypropylene (PP) and polyethylene (PE) prices strengthened during the quarter by 53% and 49%, respectively. Polyvinyl chloride (PVC) prices doubled YOY. Prices of PP, PE, and PVC were higher because of higher feedstock prices and healthy global demand growth due to economic revival in US and Europe.
PP and PE margins over naphtha strengthened by 15% ($650/metric ton) and 3% ($507/metric ton), respectively. “However, margins were hurt quarter on quarter due to strong feedstock prices and restart of US supply post arctic freeze,” the company says.
The Oil to Chemicals (O2C) business includes Refining, Petrochemicals, fuel retailing through Reliance BP Mobility Limited, aviation fuel and bulk wholesale marketing. It includes breadth of portfolio spanning transportation fuels, polymers, polyesters and elastomers.
The deep and unique integration of O2C business includes world-class assets comprising Refinery Off-Gas Cracker, Aromatics, Gasification, multi-feed and gas crackers along with downstream manufacturing facilities, logistics and supply-chain infrastructure.