Mumbai: Reliance Petroleum Ltd (RPL) has achieved an excellent performance during the half year ended 30 September 2001 with sales of Rs 17,331 crore (US $3,620 million) and a net profit of Rs 867 crore ($181 million).
During the half year ended September 2001, RPL achieved a record capacity utilisation of 107 per cent, aided by strong export performance. This is in sharp contrast to the capacity utilisation rates of other refineries, both in India and abroad - 91 per cent for North America; 87 per cent for Europe; 84 per cent for the Asia-Pacific region; 86 per cent for other Indian refineries. Thus RPL continues to operate at substantially higher capacity utilisation rates compared to both its international and Indian peers.
The higher capacity utilisation is particularly noteworthy considering the depressed domestic and global demand for petroleum products. It also demonstrates RPLs inherent strengths in maintaining its performance even in adverse market conditions. RPL is Indias largest private sector company, in terms of sales, and is second only to Reliance Industries Ltd (RIL) in terms of net profits, assets and net worth.
Sales for the half year ended 30 September 2001 increased by 21 per cent to Rs 17,331 crore ($3,620 million), as against Rs 14,308 crore for the corresponding previous half year. The operating profit (PBDIT), before other income, for the half year was Rs 1,697 crore ($355 million), reflecting an operating margin (OPM) of 9.8 per cent.
Other income stood at Rs 133 crore ($28 million), as against Rs 83 crore for the corresponding previous half year. The interest for the half year was Rs 489 crore ($102 million), as against Rs 456 crore for the corresponding previous half year. The provision for the current tax liability was Rs 67 crore ($14 million), as against Rs 54 crore for the corresponding previous half year.
The cash profit was Rs 1,274 crore ($266 million), as against Rs 969 crore for the corresponding previous half year. The depreciation was Rs 407 crore ($85 million), as against Rs 297 crore for the corresponding previous half year. The net profit stood at Rs 867 crore ($181 million), as against Rs 672 crore for the corresponding previous half year.
The total paid-up equity share capital stood at Rs 5,202 crore ($1087 million), as against Rs 4,300 crore for the corresponding previous half year. The earnings per share (EPS) for the half year are Rs 1.67 ($0.03) and the cash earnings per share (CEPS) for the half year are Rs 2.45 ($0.05). The annualised earnings per share (EPS) are Rs 3.34 ($0.07), and the cash earnings per share (CEPS) are Rs 4.9 ($0.1).
The companys contribution to the national exchequer for the half year, in the form of various taxes and duties, stands at Rs 3,567 crore ($745 million), as against Rs 4,603 crore for the corresponding previous half year.
RPL and RIL are Indias top two companies, in terms of all major financial parameters. RPL has been promoted by RIL, and is the first refinery set up in the private sector in India, pursuant to oil sector reforms. It achieved several new corporate records in its very first year of operations, ending March 2001.
In the current year, it has further accelerated the impressive performance, as borne out by the improved financials for the half year ending September 2001. RPLs exports during the half year at Rs 3,581 crore ($759 million) were the highest in the Indian corporate sector. With its products having been exported across the globe, including to the most quality-conscious and discerning markets, such as the US, Europe, Japan and other developed countries, RPL has demonstrated the international quality of its products, its operational flexibility and logistics strengths.
In July 2001, RPL was granted the Super Star Trading House status by the directorate general of foreign trade, a division of the ministry of commerce, in recognition of the companys outstanding achievement in exports.
RPL has transformed the country from a large importer of petroleum products to a net exporter. The companys operations during the current half have helped the nation save precious foreign exchange to the tune of Rs 2,539 crore ($530 million) and have contributed to the enhanced energy security. The aspect of enhanced energy security assumes particular importance in the light of recent global developments and the inherent volatility in the petroleum markets.
As a part of the move towards green fuels, India has adopted Bharat II specifications, which are equivalent to Euro II specifications, in Mumbai and the National Capital Region (NCR). RPL continued to supply HSD for the NCR region, meeting these specifications.
RPLs increased financial strength is borne out by the AA+ rating awarded to its debt by both Crisil and Fitch. The AA+ instruments are judged to offer high safety of timely payment of interest and principal, and differ in safety only marginally from AAA-rated issues. These high investment grade ratings for a manufacturing company of this scale and size, in the early years of operations, is yet another unique achievement for RPL, and will enable to further reduce interest costs and increase profitability.
Commenting on the results, RPL MD Anil D Ambani said: We are encouraged by RPLs strong financial performance in a difficult operating environment, characterised by weakness in domestic demand, and significant volatility in crude and product prices. We believe that RPLs inherent operational strengths will enable the company to maintain its performance, despite the challenges arising from the prevailing uncertain global economic outlook.