RIL O2C Q3 results: Revenue up by 6%, EBITDA rise 2.4% amid strong product sales

Reliance Industries Ltd’s (RIL) oil-to-chemicals (O2C) business reported an increase of 6 percent in revenue to Rs 1.49 lakh crore in the third quarter of the financial year 2024-25.

The jump in revenue comes on account of higher production meant for sale compared to last year when a planned maintenance and inspection shutdown of major units. The segment’s EBITDA also rose by 2.4 percent year-on-year to Rs 14,402 crore.

“Segment EBITDA for 3Q FY25 increased by 2.4 percent Y-o-Y to Rs 14,402 crore ($1.7 billion) following strong volume-led growth and higher polymer deltas. RIL’s feedstock flexibility, benefits of ethane cracking over naphtha and focus on yield optimisation helped offset the impact of unfavourable fuel cracks,” the company said in a press release.

The company’s production meant for sale came in 9.1 percent higher at 17.9 million tonnes (mt) in the third quarter from last year.

Reliance said the domestic demand for high-speed diesel (HSD), motor spirit (MS) or petrol and aviation turbine fuel (ATF) increased by 4.8 percent, 9.6 percent and 8.9 percent, respectively, over the same quarter last year.

“Reliance O2C segment benefitted from the strong domestic demand,” said chief financial officer Srikanth Venkatachari in a post-results presentation. “Fuel cracks were healthy in Q3 but declined from the elevated levels of last year,” he added.

The oil-to-chemicals segment of RIL includes refining, petrochemicals, fuel retailing, aviation fuel and bulk wholesale marketing. It includes the breadth of portfolio spanning transportation fuels, polymers, polyesters and elastomers.

Oil and gas business

The oil and gas segment of the company reported a fall of 5.2 percent in revenue from last year to Rs 6,370 crore on account of lower production from the KGD6 block.

The segment’s EBITDA also declined by 4.1 percent to Rs 5,565 crore. EBITDA margin of the oil and gas segment was at 87.4 percent for the quarter.

The average price realised for KG D6 gas was $9.74 per MMBTU (million metric British thermal unit) in the third quarter compared to $9.66 per MMBTU in the same period last year. The average price realised for CBM gas was $10.58 per MMBTU in the third quarter.

Reliance said the average KGD6 production for the third quarter declined 5.3 percent from last year as the company recorded 28.04 MMSCMD (million metric standard cubic metre per day) of gas and 21,000 barrel per day of day of oil/ condensate in the Oct-Dec period.

“The Indian gas market has remained extremely robust. In CY24, we saw a significant increase in consumption, almost by 10%, mainly driven by city gas distribution, refinery, petchem and power sectors,” said Sanjay Roy, executive vice-president for exploration and production.

The oil and gas segment includes exploration, development, production of crude oil and natural gas.

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