RELIANCE
INDUSTRIES
LIMITED
INDUSTRIES
LIMITED
RESULTS REVIEW
Q3 FY 12 ENDING DEC,2011
Ø Following 2 strong quarters, 3QFY12 was one of the
toughest quarters for the refining business globally:
Ø Margins for Asian refineries declined due to steep
fall in product cracks
Ø US refining was also impacted due to reduction in
WTI-Brent differential and reduced gasoline cracks
Ø At $ 6.8/bbl, GRM for RIL was lower by $ 3.3/bbl on
Q-o-Q basis due to lower product cracks particularly light distillates and
solids. 9M FY12 GRM still higher at $ 9.0/bbl vis-à-vis $8.1/bbl in the
previous year
Ø RIL maintained its operating leverage and processed
51.4 MMT (operated at 110%)
Ø Gas volume from KG-D6 was lower at 436.4 BCF (down
22%). Joint technical teams continue their review and analysis
Ø Marginal impact on petrochemical performance
despite market weakness – RIL production up by 5% on a Y-o-Y basis
Ø Volume growth in US shale business even as gas
prices soften - gross exit production at 233 MMCFD of gas and 34.7 MBPD of
condensate
Ø Government approved commerciality for onshore
discovery in GS-O1 and the optimised FDP for 4 satellite discoveries in KG-D6
FINANCIAL RESULTS – 9M FY 12
In
Rs.Cr
|
9M FY12
|
9MFY11
|
CHANGE%
|
TURNOVER
|
251958
|
183368
|
37
|
PBDIT
|
30952
|
30418
|
2
|
PBDIT
MARGIN
|
12.30%
|
16.60%
|
|
NET
PROFIT
|
15804
|
14910
|
6
|
Ø
Growth
in turnover led by 33% increase in prices and 4% higher volume
Ø
Lower
contribution from E&P business impacts PBDIT Margins. E&P business
impacted due to reduced volume and transfer of 30% PI in KG-D6
FINANCIAL RESULTS – 3 Q FY 12
2QFY12
|
IN RS.CR
|
3QFY12
|
3QFY11
|
CHANGE%
|
80790
|
TURNOVER
|
87480
|
62399
|
40%
|
10946
|
PBDIT
|
9002
|
10286
|
-12%
|
13.50%
|
PBDIT MARGIN
|
10.30%
|
16.50%
|
|
5703
|
NET PROFIT
|
4440
|
5136
|
-14%
|
Ø .Growth in Revenue mainly due to
higher price Environment for R&M and
Petrochemicals which were up 34% while volumes were higher by 6%
Challenging
Environment across business :
Ø E&P impacted due to lower
Production and transfer of 30# PI in KG-D6
Ø R&M impacted by lower GRM ($ 6.8
/ bbl cs $ 9.0 / bbl)
Ø Petrochemicals impacted by reduction
in deltas and weak demand
Ø
Decline
in Qtrly EBITDA due to lower margins and lower E&P volumes (change in PI
and lower production)
Ø
EXPORTS
TREND : Higher crude throughput in the SERZ refinery and higher price
environment resulting in record 3Q Exports (Up 61% on YoY basis) from 50,136 in
Q2 to 54,880 in Q3.
SEGMENT RESULTS - 9MFY12
|
|||||
Rs.Cr
|
9Mfy12
|
9Mfy11
|
change%
|
volumeCg%
|
Price Cg%
|
REFINING
|
|||||
Revenues
|
218523
|
152727
|
43.10%
|
3.90%
|
39.20%
|
EBIT
|
7958
|
6663
|
19.40%
|
||
EBIT%
|
3.60%
|
4.40%
|
|||
PETROCHEMICALS
|
|||||
Revenues
|
59213
|
44961
|
31.70%
|
6.80%
|
24.90%
|
EBIT
|
6793
|
6679
|
1.70%
|
||
EBIT%
|
11.50%
|
14.90%
|
|||
OIL&GAS
|
|||||
Revenues
|
10289
|
13146
|
-21.70%
|
-28.40%
|
6.70%
|
EBIT
|
4299
|
5131
|
-16.20%
|
||
EBIT%
|
41.80%
|
39%
|
|||
Ø
Higher
crude throughput, higher petrochemical volumes and high price environment
result in higher revenues
Ø
EBIT
Growth in R&M and petrochemicals segment – margins lower due to base
effect.
SEGMENT
RESULTS - 3Q-FY12
|
|||||
Rs.Cr
|
9Mfy12
|
9Mfy11
|
change%
|
volumeCg%
|
Price
Cg%
|
REFINING
|
|||||
Revenues
|
76738
|
52524
|
46.10%
|
7.70%
|
38.40%
|
EBIT
|
1685
|
2436
|
-30.80%
|
||
EBIT%
|
2.20%
|
4.60%
|
|||
PETROCHEMICALS
|
|||||
Revenues
|
19781
|
15962
|
23.90%
|
2.60%
|
21.30%
|
EBIT
|
2157
|
2429
|
-11.20%
|
||
EBIT%
|
10.90%
|
15.20%
|
|||
OIL&GAS
|
|||||
Revenues
|
2832
|
4178
|
-32.20%
|
-45.00%
|
12.70%
|
EBIT
|
1294
|
1504
|
-14.00%
|
||
EBIT%
|
45.70%
|
36%
|
|||
Ø
Lower
GRM at $ 6.8 / bbl (as against $ 9.0 / bbl in 3Q FY 11 and $ 10.1 /bbl in 2Q FY
12) resulting in sharp fall in R&M EBIT
Ø
Lower Deltas in both chains result in lower
Petrochemical EBIT
Ø
Reduced
Production resulted in lower OIL &
GAS EBIT. EBIT Margins improvement due to higher curde price realization (up
14% on a YoY basis).
NET PROFIT BRIDGE – 9M FY12
vs 9M FY 11
Net Profit 9M FY 11 ;- Rs.14,910 Cr
Operating Profit :- Rs. (1,228) Cr
Other Income :- Rs.1,762 Cr
Interest :- Rs.(267) Cr
Depreciation :- Rs.1,487 cr
Tax Rs,(860) Cr
NET PROFIT 9M FY 12 : Rs.15,804 Cr
Ø
Net
profit up by Rs.894 Cr compared to previous period.
Ø
It
is due to Higher other Income and lower depreciation (Lower gas production and
transfer of 30% PI in KG-D6) partly impacted by higher interest and tax.
Business mix – 9M FY 12
Revenues : 75.6% Refining + Petrochem 20.5% + oil
& gas 3.6% + 0.3% Others
EBIT : 41.7% Refining + Petrochem 35.6% + oil
& gas 22.5% + 0.1% Others
FINANCIAL
RATIOS
|
|||
R I L
|
Dec-11
|
Mar-11
|
|
CASH
BALANCE (CR)
|
74539
|
42393
|
|
NET
DEBT:EQ
|
DEBT
FREE
|
0.17
|
|
NET
GEARING
|
DEBT
FREE
|
13.50%
|
|
GORSS
INTT COVER
|
13.50%
|
14.70%
|
|
ROCE%
|
12.80%
|
13.20%
|
|
ROE%
Adjusted
|
14.20%
|
15.50%
|
|
Ø Strong financials with a
conservative Balance sheet
Ø BBB POSITIVE outlook by S&P;
Baa2 Positive Outlook by Moody’s
Ø Domestic Debt Rated AAA by CRISIL
& FITCH
Ø Weaker Margin environment and higher
other income impact ROCE and ROE for 9M FY 12
3Q FY 12 BUSINESS HIGHLIGHTS
Achieved gas production of 133 BCF & 1.4 MMBBL of condensate/oil in
KG-D6
Cumulative production of 1,693 BCF and 18.2 MMBBL of oil / condensate
Approvals received:
Commerciality for offshore discovery in GS-O1
Optimised FDP for 4 satellite discoveries in D6
10 production wells drilled in CBM blocks Sohagpur (E/W), taking total
to 36
Commenced hydraulic-fracturing of development wells
Relinquished onshore block AS-17
·
Ongoing
Optimization in order to maximize resource utilization
REFINING & MARKETING
BUSINESS ENVIRONMENT
nFinancial crisis in Europe and low economic growth
assessment
IEA further lowers its 2011 growth estimate to 0.7
MBD but remains optimistic for demand growth in 2012
Margin improvement trend reversal in 3Q FY12 for
refiners with sharply lower product cracks
Gasoline margins globally and petrochemical
feedstock margins in Asia affected most
Sweet-sour spreads weaken as a result of strong FO
market
Narrowing Arab Heavy - Dubai differential hurting
Asian refining margins
*
* * x
x x *
* *
STAND
ALONE RESULTS OF RIL FOR Q3 FY 12 – with comparison with Q2 and Q1 and difference in percentages
are given in table below :
Ø Net Sales at Rs.84315 cr - have gone
up by 8.36% from Q2 FY 12, the previous qtr and 5.08% from Q1 FY 12.
Ø Net Profit at Rs.4440 Cr – is down by -22.15% from Q2 FY 12 and by -21.57%
from Q1 FY 12.
Ø Basic EPS stands at Rs.13.6 in Q3 FY 11; compared to Rs.17.4 in Q2 FY 12;
and Rs.17.3 in Q1 FY 12.
Ø While there is decline in Quarterly
EPS in Q3, we will need to wait for Q4 to assess the full Year EPS. If the Q4
EPS stands at same level, annual EPS will be around Rs.62 on a Face Value of
Rs.10.
Ø Current MP is Rs.794.10 while the 52
week high price is Rs.1065.90 and the 52 week low price is Rs.687.10. The PE Ratio on the above comes
to 12.81.
Ø Reliance
fortunes are tied to many changing Global factors and Business Environment. But, its
expansion plans are very impressive, in each of its ventures. As its other
Businesses pick up volumes, its dependence on oil and Gas and R&M will come
down gradually. Oil and Gas volumes especially has suffered huge negative
change in volumes. Every improvement in this segment will yield much better
turnover and profits in coming quarter.
Stand alone results table:
RIL-S/A
|
31-Dec-11
|
30-Sep-11
|
%DIF1
|
30-Jun-11
|
%DIF2
|
Net Sales
|
8513500
|
7856900
|
8.36
|
8101800
|
5.08
|
Increase in SIT/WIP
|
-148900
|
-160700
|
-7.34
|
89700
|
-266
|
Raw Materials
|
7419000
|
6466100
|
14.74
|
6444300
|
15.12
|
Traded Goods
|
11200
|
51400
|
-78.21
|
57300
|
-80.45
|
Employees Cost
|
67200
|
71500
|
-6.01
|
87800
|
-23.46
|
Depreciation
|
257000
|
296900
|
-13.44
|
319500
|
-19.56
|
Other Expenditure
|
436500
|
444200
|
-1.73
|
430100
|
1.49
|
Total Expenditure
|
8042000
|
7169400
|
12.17
|
7428700
|
8.26
|
Profit from Operations
|
471500
|
687500
|
-31.42
|
673100
|
-29.95
|
Other Income
|
171700
|
110200
|
55.81
|
107800
|
59.28
|
Interest
|
69400
|
66000
|
5.15
|
54500
|
27.34
|
Profit before tax
|
573800
|
731700
|
-21.58
|
726400
|
-21.01
|
Tax expense
|
129800
|
161400
|
-19.58
|
160300
|
-19.03
|
Net Profit
|
444000
|
570300
|
-22.15
|
566100
|
-21.57
|
Face Value (In Rs
|
10
|
10
|
0
|
10
|
0
|
Paid Up Equity
|
327500
|
327400
|
0.03
|
327400
|
0.03
|
Basic EPS
|
13.6
|
17.4
|
-21.84
|
17.3
|
-21.39
|
Public holding (%)
|
55.29
|
55.29
|
0
|
55.28
|
0.02
|
*
* * E
N D *
* *
No comments:
Post a Comment