Indian energy conglomerate Reliance Industries (RIL) has reported a jump in profits, boosted by strong revenue growth in its oil and gas business.
Net profit between April and June (Q2 2014) was 60 billion rupees (US$ 1 billion), 14% higher than the corresponding period in 2013.
The company’s net profit topped market expectations, largely thanks to a 27% rise in sales in its oil and gas exploration and production business – driven by a sharp increase in its US shale gas unit revenue.
Reliance Industries, which is controlled by India’s richest man Mukesh Ambani, added that revenue had risen by 7.2% to 1.1 trillion rupees (US$ 17.9 billion).
Commenting on the results, Ambani said: “RIL has delivered a record level of consolidated net profit this quarter. This was achieved despite weak regional refining margins and a planned turnaround in our refinery. The petrochemicals business performance highlights the strength of our portfolio mix and end-market diversity.
“Alongside this robust financial performance, we also made significant progress on our growth commitments. We have a great pipeline of new projects, which will give Reliance an enduring competitive advantage. We are further expanding our retail business in existing markets while exploring new markets and channels.”
Dwindling production rates and regulatory issues with India’s government have hindered the progress of Reliance’s oil and gas exploration unit in the past.
However in Q2, pre-tax earnings for its oil and gas division jumped 114.4% year-on-year, due to a strong performance from the company’s US shale business.
Edited from various sources by Katie Woodward
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