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Reliance’s fuel exports dip below 10 million tons in April-June
Reliance Industries exported less than 10 million tons of petroleum products for the first time after three quarters, mainly because of increased demand at home. The company exported 9.8 million tons of petroleum products in April-June. In the quarter ended March, the country’s largest petroleum exporter dispatched 10.8 million tons for the overseas market. The company’s exports of refined products during the first quarter of 2016-17 were higher than the 8.5 million tons in the first quarter of 2015-16, pointing to a slow recovery in the export market.
The demand for petrol in the domestic market rose 10 per cent, diesel 4.7 per cent and jet fuel 11 per cent during April-June. Exports constituted the bulk of Reliance Industries’ petroleum sales, cornering 59 per cent of the total volume, the company said in a presentation to analysts. Domestic sales undertaken from its own retail outlets and to bulk customers and public sector companies were 4.1 million tons while captive consumption was 2.7 million tons.
Reliance Industries’ export earnings continued to dishearten analysts, declining 9.4 per cent to Rs 332.82 billion ($4.9 billion) during the quarter from Rs 367.17 billion in the corresponding period of the previous year due to lower product prices. Of this, exports of refined products were Rs 286.10 billion ($4.2 billion) during the first quarter of 2016-17 as compared to Rs 323.52 billion in the same period a year ago. “Higher retail and PSU sales resulted in lower exports, quarter on quarter,” the company said. Initiatives, including automation, helped the company’s 1,022 retail outlets. These included adding 72 outlets during the quarter.
Sales volumes of petrol and diesel were up 21 per cent, quarter on quarter. “The retail outlet throughput was 230 kilolitres per month during the quarter compared to 160 kilolitres per month of key competitors,” the company said. Trans-connect loyalty sales accounted for 30 per cent of diesel sales. Key initiatives in retail included strategic tie-ups with service providers for providing credit solutions. The company also enhanced its supply infrastructure to service retail, bulk and PSU oilmarketing companies through five terminals owned by it and nine hired ones besides 19 depots.
The company re-secured its customer base with more than 3.8 per cent market share in bulk sales of diesel after deregulation in October 2014. It also received extension of supplies to Indian Railways and the state transport unit in Pune. “Every 10th Indian Railway locomotive is fuelled by RIL,” the company said. Further, Reliance Industries’ LPG business sales grew by 10 per cent, year on year, to 214,000 tons. During the quarter, it also tested and developed 4 KG LPG cylinder which it plans to launch next month. Retail ATF sales volume grew 38 per cent y-o-y. RIL now has substantial market share at 10 out of 25 airports where it operates, the company said. Troy Brouwer Jersey
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