Reliance Industries (RIL) reported gross refining margin (GRM) of $9.4/bbl during the quarter on the back of rise in global oil prices. Refining margins improved quarter-on-quarter, in comparison to $8.1/bbl seen during the first quarter of FY20.
For the quarter ended September 30, 2019, revenue from refining and marketing business slipped 1.6 per cent on annual basis to Rs 97,229 crore, said RIL. Segment earning before interest and tax (EBIT) decreased 6.9 per cent year-on-year to Rs 4,957 crore "mainly due to marginally lower GRM and narrow light-heavy crude differentials", the company said. Segment EBIT margin stood at 5.1 per cent during the second quarter of FY20, slightly lower than 5.4 per cent during Q2FY19.
RIL's GRM surpassed the Singapore gross refining margins by $2.9/bbl. The Asian benchmark has improved by 80 per cent sequentially to $6.5 per barrel in the September quarter. However, premium over Singapore complex margins declined as strength in FO cracks supported Singapore margins, RIL said in a statement. Additionally, tighter crude markets for heavy crudes resulted in higher costs, the company added.
RIL's refinery during the quarter under consideration was 16.7MMT, as against 17.7MMT during the same quarter last year. Morever, the company operated 1,385 fuel retail outlets across the country.
The refining and marketing business accounts for half of RIL's revenue and a quarter of its operating profit.