The Reliance Industries has recently informed that its petrochemicals business has given a below-standard performance in the third quarter of the current fiscal, ended in December, 2007. The officials of the company have stated that the companys revenue from the petrochemicals business has went down by 3.3 per cent to Rs 12,706 crore, though the earnings before interest and tax, was at Rs 1,778 crore that is almost the same as in the third quarter of last fiscal.
The sources from the company are informing that the profitability of the companys petrochemicals business is showing a dipping trend on a consecutive basis. According to a source, the earnings before interest and tax from petrochemicals was down by a good 12.19 per cent in the third quarter in comparison to the second quarter that ended in the month of September, 2007. The source also said that the revenues were also down almost 2 per cent over the same period of the financial year. The experts from the industry have stated that the company is seeming to have been hit on both volumes and realizations. The production of the petrochemicals also went down by 1.51 per cent during the third quarter, while the polymer production remained sluggish at 8.52 lakh tonnes.
While explaining the probable reasons behind the decline in the petrochemicals business of the company, a top official said that the continuous high price of naphtha, affected the margins in the case of specific products like polyethylene. The naphtha is a basic feedstock for the production of petrochemicals. However, the official added that the underperformance of the petrochemicals business could not affect the company that much as the company has given an extremely strong performance in the refining segment. The companys revenues in this segment have increased by a good 25.31 per cent to Rs 26,154 crore and the earnings also went up by 35.79 per cent to Rs 2,614 crore. The company has enjoyed an exceptionally high refining margin of $15.4 per barrel during the quarter and this margin really drove the performance of the refining business.
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| Posted : 1/21/2008 |
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