Reliance Industries reported a decline in revenues across its Oil refining & marketing, Petrochemicals, Oil & Gas divisions during FY2020.
Refining & Marketing:
FY20 revenue from the Refining & Marketing segment declined by 1.6% Y-o-Y to Rs. 387,522 crore ($ 51.2 billion) and Segment EBIT decreased by 6.8% Y-o-Y to Rs. 21,334 crore ($ 2.8 billion). R&M segment revenue was impacted due to lower price realizations in domestic as well as export market due to fall in crude prices. GRM for FY20 was at $ 8.9/bbl, outperforming Singapore complex margins by $ 5.7/bbl.
4Q FY20 revenue from the Refining & Marketing segment declined by 3.4% Y-o-Y to Rs. 84,854 crore ($ 11.2 billion) while Segment EBIT increased by 28.2% Y-o-Y to Rs. 5,706 crore ($ 754 million) with higher throughput and better GRMs. Segment EBIT improved on Y-o-Y basis with maximized crude throughput and better light distillate cracks. GRM for 4Q FY20 was at $ 8.9/bbl, remarkably outperforming Singapore complex margins by $ 7.7/bbl.
Petrochemicals Business:
FY20 revenue from the Petrochemicals segment decreased by 15.6% to Rs. 145,264 crore ($ 19.2 billion) due to lower price realizations with weaker demand in well-supplied markets. Petrochemicals segment EBIT was at Rs. 25,547 crore ($ 3.4 billion), down 21.1% as compared to previous year, due to lower margins in key products - Paraxylene, MEG, PET, Polypropylene and Polyethylene.
4Q FY20 revenue from the Petrochemicals segment decreased by 24.1% Y-o-Y to Rs. 32,206 crore ($ 4.3 billion) due to lower price realizations along with disruptions in local and regional markets. Petrochemicals segment EBIT was at Rs. 4,553 crore ($ 0.6 billion), down 42.8% Y-o-Y, with significant decline in margins. The impact of lower product margins was mitigated to some extent by optimizing feedstock mix during the quarter.
Oil & Gas:
FY20, revenue for the Oil & Gas segment decreased by 35.8% to Rs. 3,211 crore. Segment EBIT was at Rs. (1,407) crore as against Rs. (1,379) crore in the previous year. Volumes from conventional fields and US shale were lower on account of natural decline and slowdown in development activity. Domestic production was lower at 38.8 BCFe, down 34.1% Y-o-Y and production in US Shale operations declined by 14.9% to 80.4 BCFe.
4Q FY20, revenue for the Oil & Gas segment decreased by 41.5% Y-o-Y to Rs. 625 crore. Segment EBIT was at Rs. (485) crore as against Rs. (267) crore in the corresponding period of the previous year. The segment performance continued to be impacted by low volumes and declining prices. Domestic production was lower at 4.1 BCFe, down 67.6% Y-o-Y while production in US Shale operations increased by 14.4% to 23.9 BCFe.
