middle distillates and crude oil have been impacted the most by sluggish industrial activity, drop in global freight and reduced air travel (compounded by HI N 1 virus spread). Middle distillate inventories are at a 20-year high. Better-than-expected driving season in the US supported gasoline's margin. Product cracks, the difference between the prices of petroleum products and crude oil, were lower 20%-60% due to rising inventories and weak demand.
The top line ofRIL fell 23% to Rs 32055
Refinery Sector Aggregates
200906(3) 200806(3) Var(%)
Sales 174682 255258 ·32
OPM (%) 14.2 8.3
Operating Profit 24729 21241 16
Other Income 4357 2136 104
PBDIT 29086 23377 24
interest 1711 1916 ·11
PBDT 27375 21461 28
Depreciation 6459 5443 19
Profit Before Tax 20916 16018 31
~x 001 ~n ~
Net Profit 14505 10847 34
Figures in Rs crore. LP: Loss to Profit. PL: Profit to Loss. Source:Capitaline Databases
crore and the bottom line 12% to Rs 3636 crore in the quarter ended June 2009 compared with the June 2008 quarter. OPM improved 380 bps to 18.5%, leading to OP declining 3% to Rs 5921 crore. PBT fell 5% to Rs 4650 crore. RIL had cash equivalent ofRs 21827 crore end June 2009.
Indian Oil's revenue fell 21 % at Rs 59179.59 crore in the quarter ended June 2009 compared with the corresponding previous year mainly on fall in international oil product prices although product sales increased 9% to 17.75 million tonnes. Net profit surged a massive 787% to Rs 3682.83 crore mainly on account of inventory and foreign exchange gains and lower interest.
Net operating revenue of Oil and Natural Gas Corporation declined 26% to Rs 14945.44 crore, with OPM up 500 bps to 64% and net profit falling 26% fall to Rs 4847.72 crore.
Sales of BPCL fell 35% to Rs 25514.37 crore in the quarter ended June 2009 compared with the corresponding previous year period. This was below market expectation. However, it notched a net profit ofRs 614.12 crore compared with a loss ofRs 1066.70 crare in the quarter ended June 2008 on account of inventory gain, lower crude prices and foreign exchange gain. Foreign exchange gain was Rs 233.03 crore compared with foreign exchange loss ofRs 427.79 crore in the June 2008 quarter. Inventory gain stood at Rs 300 crore.
Outlook
As the world economy is stabilizing and the global business and consumer confidence is showing signs of recovery, the oil and refinery sector is also hopeful of coming out of pain and reporting better numbers going forward. Although crude realisation, refining margin and product cracks were lower in the quarter ended June 2009, the industry is hopeful of better performance on lower base ofFY 2009. The World Bank has predicted the global GDP growth rate improving from a degrowth of 2.9% in 2009 to a growth of 2.0% in 2010 and 3.2% in 201]. Demand is, therefore, expected to pick up.
FY 2010 is important for the Indian oil and gas sector as natural gas production commenced from the Krishna-Godavari D6 basin of RIL from 2 April 2009 and incremental crude oil inflow is likely from August 2009 from the Rajasthan fields of Cairn India. The refining sector, too, is hopeful of further improvement in performance in the rest of the current fiscal -
The top line ofRIL fell 23% to Rs 32055
Refinery Sector Aggregates
200906(3) 200806(3) Var(%)
Sales 174682 255258 ·32
OPM (%) 14.2 8.3
Operating Profit 24729 21241 16
Other Income 4357 2136 104
PBDIT 29086 23377 24
interest 1711 1916 ·11
PBDT 27375 21461 28
Depreciation 6459 5443 19
Profit Before Tax 20916 16018 31
~x 001 ~n ~
Net Profit 14505 10847 34
Figures in Rs crore. LP: Loss to Profit. PL: Profit to Loss. Source:Capitaline Databases
crore and the bottom line 12% to Rs 3636 crore in the quarter ended June 2009 compared with the June 2008 quarter. OPM improved 380 bps to 18.5%, leading to OP declining 3% to Rs 5921 crore. PBT fell 5% to Rs 4650 crore. RIL had cash equivalent ofRs 21827 crore end June 2009.
Indian Oil's revenue fell 21 % at Rs 59179.59 crore in the quarter ended June 2009 compared with the corresponding previous year mainly on fall in international oil product prices although product sales increased 9% to 17.75 million tonnes. Net profit surged a massive 787% to Rs 3682.83 crore mainly on account of inventory and foreign exchange gains and lower interest.
Net operating revenue of Oil and Natural Gas Corporation declined 26% to Rs 14945.44 crore, with OPM up 500 bps to 64% and net profit falling 26% fall to Rs 4847.72 crore.
Sales of BPCL fell 35% to Rs 25514.37 crore in the quarter ended June 2009 compared with the corresponding previous year period. This was below market expectation. However, it notched a net profit ofRs 614.12 crore compared with a loss ofRs 1066.70 crare in the quarter ended June 2008 on account of inventory gain, lower crude prices and foreign exchange gain. Foreign exchange gain was Rs 233.03 crore compared with foreign exchange loss ofRs 427.79 crore in the June 2008 quarter. Inventory gain stood at Rs 300 crore.
Outlook
As the world economy is stabilizing and the global business and consumer confidence is showing signs of recovery, the oil and refinery sector is also hopeful of coming out of pain and reporting better numbers going forward. Although crude realisation, refining margin and product cracks were lower in the quarter ended June 2009, the industry is hopeful of better performance on lower base ofFY 2009. The World Bank has predicted the global GDP growth rate improving from a degrowth of 2.9% in 2009 to a growth of 2.0% in 2010 and 3.2% in 201]. Demand is, therefore, expected to pick up.
FY 2010 is important for the Indian oil and gas sector as natural gas production commenced from the Krishna-Godavari D6 basin of RIL from 2 April 2009 and incremental crude oil inflow is likely from August 2009 from the Rajasthan fields of Cairn India. The refining sector, too, is hopeful of further improvement in performance in the rest of the current fiscal -
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