Reliance Industries financial performance in the third quarter Q3 may be less as compared to earlier year YoY due to less margins in refinery business. The oil and gas leader, which reported a net profit at Rs 3,882 crore in the third quarter of the previous fiscal, may post lower profits in this fiscal. Even their petrochemical segment margins are under pressure due to high carring costs, but, the pressure will not be as serious as their refininery business.
In Q2, RIL had refining margins at $13.4 per barrel of crude oil, but in Q3, it could be only $9 per barrel since crude has touched an all time low at $39 a barrel.
RIL had shut its polypropylene plant in Jamnagar in October 2008 stating that the step was taken for carrying out maintenance work. Petrochemical products sales may have decreased due to the shutting of this plant putting pressure on the revenues from the segment.
News running across the sentiments say that RIL's M2M losses on crude has run into billions of dollars, when crude prices plunged to below $40 a barrel.
The shares of RIL had plunged at an all-time low at Rs 930 following the news of shutting of the Jamnagar plant on October 27 2008. Remain cautious.
