Reliance Petro earns Rs. 1,167 cr. profit

Reliance Petroleum has announced a net profit of Rs. 1,167 crores for the nine month period ended December 31, 2000, on a sales of Rs. 23,457 crores. Other income amounted to Rs. 154 crores. Total expenditure for the period was Rs. 21,248 crores. The company provided Rs. 727 crores for interest, Rs. 469 crores for depreciation and nil for tax.

Sales for the nine month period were the highest ever by a Indian private sector company. For the period, the company's exports were Rs. 4,714 crores.

The refinery operated at 101 per cent of capacity in the third quarter and at 96 per cent for the nine month period. During the nine months, RPL processed 19.4 million tonnes of crude.Mr. Anil Ambani, managing director, said, ``We are encouraged by RPL's strong financial performance in the very first nine months of its operations. This performance has been achieved as a result of RPL's unmatched global competitiveness, and its high level of capital and operating productivity. Our focus is now on further improving operating and business efficiencies.''

For the quarter ended December 31, 2000, RPL's net profit was Rs. 441 crores on a sales of Rs. 9,149 crore and other income of Rs. 71 crores. The company provided Rs. 271 crores for interest, Rs. 172 crores for depreciation and nil for tax.

In line with the Government's oil sector policies, RPL is at present selling the five controlled products - LPG, gasoline, aviation fuel, kerosene and diesel - to the public sector oil companies. It had already applied for marketing rights for the controlled products as it meets all criteria specified in this regard by the Government.

The company has a 13 per cent stake in Petronet VK Ltd., owning the 113 km long Vadinar- Kandla pipeline. This pipeline links to Kandla-Bhatinda pipeline, which serves the North and North-West markets.

The Central India pipeline project, which envisages setting up of a 1,625 km pipeline, serving the landlocked markets in central India has been approved. The company will hold a 26 per cent stake for Rs. 500 crores in the joint venture and also a 10 per cent stake in Petronet India Ltd., the holding company set up for creation of pipeline infrastructure for evacuation of petroleum products all over India.

According to Mr. Ambani, RPL's capacity is now 27 million tonnes per annum and the company is first looking at de-bottlenecking its operations and will then consider an expansion of capacity.

He further said Reliance Industries would consolidate RPL's financials from 2001-02. This would add 40 per cent to RIL's bottomline and add another Rs. 10 to its earnings per share (EPS). RPL will pay a dividend for the current year.

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