By ICN GroupPetro Chemical, July 31, 2020
Reliance O2C Petrochemicals revenue down 33%
Decline due to lower price realizations with disruptions in local and regional markets amid Covid-19 outbreak.
Reliance Petrochemicals 1Q FY21 revenue declined by 33.0% Y-o-Y to Rs. 25,192 crore primarily due to lower price realizations with disruptions in local and regional markets amid Covid-19 outbreak.
Polyester chain margins were weaker due to decline in PX and PTA margins with significant new supplies. Polyester chain margins were at $540/MT v/s $668/MT in 1QFY20. With sharp fall in feedstock prices, naphtha cracking economics improved vis-a-vis gas cracking aiding polymer chain margins. Polymer chain margins were at $500/MT v/s $471/MT in the prior period.
Segment EBITDA for the quarter declined 49.7% Y-o-Y to Rs. 4,430 crore. Weak domestic demand and higher share of exports impacted margins as compared to regional benchmarks. The impact of lower realization was partially offset by cost optimization and integration benefits.
Reliance’s Operating rates remained >90%, significantly ahead of industry peers, while ensuring utmost safety and care of employees and their families. RIL inverted its business model from 20%/80% (exports/domestic) to 80%/20% within the first 10 days of the lockdown, including exports from sites typically serving only domestic markets.
RIL increased its focus on health & hygiene segment, food and beverage packaging and agriculture demand led products such as:-
Special melt blown PP to support domestic N95 mask and PPE production; PSF sliver forms raw material along with swab stem rod; and
FDY share is 70% in PPE segment and 50% in north-based Mink & Shearing segments.