Reliance Industries Limited (RIL) O2C Refining & Marketing revenues for 1Q FY21 declined by 54.1% Y-o-Y to Rs. 46,642 crore due to lower crude oil price and lower throughput. 

 

Brent crude price averaged at $29.2/bbl during the quarter v/s $68.8/bbl in 1QFY20, down 57.6% Y-o-Y.

 

The global oil demand for the quarter is estimated to have contracted sharply by 16.4 mb/d due to lockdowns and travel restrictions globally. India oil product demand also declined sharply by 25.8% Y-o-Y during the quarter, led by ATF (-80.3%), MS (-35.9%) and HSD (-33.3%). Global destruction of demand for transportation fuels impacted cracks for gasoline, gasoil and jet-kero.

 

The EBITDA declined to Rs. 3,818 crore (down 25.8% Y-o-Y) due to weak margin environment and lower throughput. Refining segment profitability was sustained through optimized crude procurement, relatively higher utilization, cost management and agile product placement.

 

RIL optimized its refining operations to provide feedstock to Petrochemicals while meeting other supply commitments. RIL used flexibility in its refining configuration to swing significant production of ATF into diesel and other products as ATF demand was severely impacted due to air travel restrictions.

 

RIL managed to achieve more than 70% of previous quarter MS and HSD volumes, due to strategic presence of retail outlets and strong customer value proposition. The exit volumes for June ’20 crossed 90% of pre-Covid throughput.

 

BP and Reliance announced their new Indian fuels and mobility joint venture Reliance BP Mobility Limited (RBML) after receipt of regulatory and other customary approvals. Operating under the “Jio-bp” brand, the joint venture aims to become a leading player in India’s fuels and mobility markets.