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Reliance's FY17 revenue from petrochemicals up 12.2%
24
Apr '17
Courtesy: Reliance Industries
Courtesy: Reliance Industries
Increase in prices across polymers and polyester chain has contributed to Reliance Industries’ (RIL) FY17 revenue growth, which increased by 12.2 per cent year-on-year to Rs 92,472 crore ($14.3 billion). Petrochemicals segment EBIT increased by 27.5 per cent to Rs 12,990 crore ($2.0 billion), due to favourable product deltas and marginal volume growth.

For January-March 2017 quarter, revenue from the petrochemicals segment increased by 26.4 per cent year-on-year to Rs 26,478 crore ($4.1 billion), primarily due to increase in prices across all products, this was partially offset by lower volumes. Petrochemicals segment EBIT increased by 25.8 per cent to Rs 3,441 crore ($531 million), supported by favourable product deltas.

Commenting on the results, RIL chairman and managing director Mukesh D Ambani, said: “Operationally, we continue to scale new heights. RIL generated its highest ever annual profits at Rs 29,901 crore, registering a growth of 18.8 per cent on year-on-year basis. Refining and petrochemicals businesses achieved record levels of profitability, underpinned by our ability to access feedstock competitively from global markets, maintain high operating rates and place products in growth markets. With ongoing projects our portfolio will become significantly more robust and integrated, securing long-term profitable growth.”

“FY17 witnessed recovery in polyester chain deltas with firm stable demand, higher operating rates in China and lower inventory levels. In FY17, domestic polyester markets witnessed marginal growth of 3 per cent year-on-year. Strong textile demand and new applications are driving polyester demand growth and it continues to replace natural fibre,” the company said analysing the result.

During fourth quarter of FY17, PX prices firmed up quarter-on-quarter amidst healthy buying from downstream. Three consecutive contract settlements during the quarter and improved crude oil prices provided strength to PX market. Delta increased to $385/MT during the quarter on account of surge in PX prices.

PTA markets witnessed disciplined operation supported by stable downstream demand and bullish sentiments in futures market at the beginning of the quarter. Prices gained quarter-on-quarter tracking firm upstream PX prices. PTA – PX delta remained stable at $99/MT in 4Q FY17. Functional PTA units in China continued to operate above 85 per cent during the quarter.

MEG prices during the quarter surged 19 per cent quarter-on-quarter backed by tight supplies, unplanned outages and low inventories in Chinese ports. MEG delta over naphtha increased 24 per cent quarter-on-quarter to $541/MT and is above 5 year average delta, the company said.

Polyester market fundamentals witnessed strong demand prior to Lunar New Year holidays in China. Polyester producers kept plant utilisation rates high in order to maintain inventory for the peak season demand. Operating rates of polyester fibre and yarn plants in China were in the range of 82-84 per cent during January-March quarter.

Polyester filament yarn prices improved by 9 per cent and staple fibre prices gained 14 per cent quarter-on-quarter respectively. PFY delta continued to remain strong and was around 5 year average level. PSF market fundamentals remained stable amid tight supply and support from firm cotton prices. PSF delta surged to $210/MT, gain of 20 per cent quarter-on-quarter and is above 5 year average levels.

MEG production during quarter was lower due to scheduled plant shutdown at Dahej and cracker shutdown at Hazira. Fibre intermediate production during last quarter of FY17 gained 5.8 per cent year-on-year to 1.9 MMT while polyester output was marginally lower at 0.6 MMT. (RKS)

Fibre2Fashion News Desk – India


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