Imports of cheaper Russian oil have boosted profits at India’s Reliance Industries, which also also boosted fuel exports in the wake of the invasion of Ukraine.
Reliance emerged as one of the key buyers of discounted Russian crude after some Western buyers shunned it following Moscow’s invasion of Ukraine in late February.
The group owned by billionaire Mukesh Ambani reported a 46.3% jump in profit during the quarter ended June 30, rising to 179.55 billion rupees ($2.25 billion) compared with 122.73 billion rupees a year earlier.
Robust refining margins due to intake of cheaper crude Russian oil and fuel exports buoyed its dominant oil-to-chemicals business.
The refiner also boosted fuel exports, especially to European countries grappling with shortages due to the sanctions on Russian oil.
“Geopolitical conflict has caused significant dislocation in energy markets and disrupted traditional trade flows,” Ambani said.
“This along with resurgent demand has resulted in tighter fuel markets and improved product margins.”
Refining margins for diesel, petrol and jet fuel in Asia hit a record high in June.
Consolidated revenue from the oil-to-chemicals business – which includes the world’s biggest refining complex at Jamnagar – jumped 56.7% to 1.62 trillion rupees, its best ever quarterly performance, the company said.
Reliance, which produces gas from a block in the country’s east coast, said it also benefited from a revision in local prices and expects higher local prices from October. India pegs its domestically produced gas to global benchmarks.
- Reuters, with additional editing by George Russell
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