India’s Reliance Industries Q1 profit up 13.7 percent to around $1B

Nathan Andrada – Fourth Estate Cooperative Contributor

Mumbai, India (4E) – Reliance Industries reported on Saturday that that its first-quarter net profit climbed 13.7 percent to nearly $1bn, the largest quarterly profit by a private company, boosted by higher refining margins, better earnings in petrochemicals and the growth in its U.S. shale gas business.

Reliance said net profit stood at 59.57bn rupees (around $985mn) for the three months through June. Sales were up 7.2 percent to 1.07tn rupees, according to the company.

Revenue at the company’s oil-and-gas business jumped by 27.3 percent while revenue at the petrochemical business advanced by 9.3 percent. Meanwhile, gross refining margin for converting a single barrel of crude into fuel products was at $8.70 for the latest period compared with $8.40 in the year-earlier period, the company said.

Revenue from oil-and-gas operations was driven by gains in Reliance’s U.S. shale gas business, analysts said. However, Reliance’s output at a natural-gas field off the east coast of India fell.

Reliance Chairman Mukesh Ambani announced last month plans to invest $30bn over the next three years as it bets that the growth of the Indian economy will benefit many of its businesses.

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