Reliance O2C revenue increased 10.9% in Q4; EBITDA rose 3%

Reliance’s O2C business includes refining, petrochemicals, fuel retailing through Reliance BP Mobility Ltd, aviation fuel and bulk wholesale marketing.

Reliance Industries Limited (RIL) oil-to-chemical business posted a 10.9 percent increase in revenue at Rs 1,42,634 crore in the quarter ending March 31, on account of improved realization for transportation fuels segment and higher volumes.

The O2C segment’s EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 3 percent year-on-year to Rs 16,777 crore in the fourth quarter. Healthy EBITDA was supported by advantageous feedstock sourcing, ethane cracking and higher domestic product placement, the company said in a press release.

Reliance’s O2C business includes refining, petrochemicals, fuel retailing through Reliance BP Mobility Ltd, aviation fuel and bulk wholesale marketing. The company does not report its gross refining margins (GRMs) separately but has traditionally outperformed the benchmark Singapore GRMs.

Chairman and Managing Director, Mukesh Ambani said, “Strong demand for fuels globally, and limited flexibility in refining system worldwide, supported margins and profitability of the O2C segment. Downstream chemical industry experienced increasingly challenging market conditions through the year. Despite headwinds, maintaining leading product positions and feedstock flexibility through our operating model that prioritises cost management, we delivered a resilient performance.”

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For the financial year 2023-24 (FY24), O2C revenue tanked by 5 percent YoY to Rs 5,64,749 crore (or $67.7 billion) primarily on account of lower product price realization following a 13.5 percent YoY decline in average brent crude oil prices, the company said.

In a presentation post results, Chief Financial Officer (CFO) V Shrikant said volatility in the crude oil prices would be subject on supply cuts by OPEC+ (Organisation of Petroleum Exporting Countries and its allies), geopolitical tensions and any attacks on energy infrastructure.

In Q4, the company’s total throughput stood at 19.8 MMT (million metric tonne) same as the last year.