Refining

§         Revenues Grew by 36%

• Margins at 9.9% vs 10.8% YoY
• Margins at 9.9% vs 10% QoQ
• GRM’s at $ 15.5/bbl vs $15.4/bbl QoQ; vs $13/bbl YoY
• Domestic marketing margins on MS and HSD continue to be under pressure

§         RIL is currently maintaining a price differential of Rs. 5.0 to Rs. 19.5 per litre over PSUs’ retail selling price on HSD and Rs. 4.5 to Rs.14.0 per litre for MS across India

Petchem

• Reveneus up 12%
• Margins at 10.4% vs 11% YoY
• Margins at 10.4% vs 14% QoQ
• High feedstock prices continued to impact the petrochemicals business
• Import duty on Polyester, PTA and MEG was reduced from 7.5% to 5% and on PX from 2% to zero BUT was able to minimize damage

Oil & Gas

Margins At 54% Vs 55.29%

RELIANCE FY08

Revenues up 18% to Rs 139269 cr vs Rs 118354 cr (poll: Rs 132476 cr)

Net profit up 63% to Rs 19458 cr vs Rs 11943 (poll: Rs 19613.7 cr)

Net profit with extraordinary was up 28%

Refining

• EBIT margin for the refining business increased to 10.3% vs 9% in FY07
• GRM for the year was US$ 15.0 / bbl vs US$ 11.7 / bbl
• Jamnagar refinery processed 31.8 million tones of crude with an average utilization rate of 96.4%. This was significantly higher than the average utilization rate for refineries globally

Outlook on refining margins

Refining margins witnessed significant volatility during the year. Margins peaked in the second quarter of the year due to high light product cracks and tightened product markets but dropped in the third quarter mainly due to increased crude prices and reduced cracks. In the fourth quarter, US Gulf Coast margins continued to remain weak due to low gasoline cracks whereas Singapore complex margins decreased on lower naphtha cracks.

Margins for complex refineries continue to remain strong, supported by tightened product markets, strong margins for light products and unplanned outages by large refiners.

Petchem

• Standalone Polyester producers witnessed improvement in margins.
• On a chain basis, polyester margins remained flat primarily due to lower paraxylene margins.
• There was a significant compression in the PX margins due to lower prices and higher feedstock (naphtha) cost.
• Polymer prices witnessed a strong uptrend with average SEA prices for PE, PP and PVC increasing by 10%, 9% and 16% respectively
• PVC margins were higher as compared to the previous year on account of lesser price increase in its raw material EDC.
• Stable gas prices benefited the gas-based crackers as compared to naphtha crackers.

Others

• RIL has currently four rigs under operation. With a view to accelerate the exploration program, RIL has plans to mobilize additional seven rigs of which three are expected to be operational in FY 2008-09.
• The Development plan of South West Panna (SWP) & Panna K (PK) Field were approved by Management Committee (MC) and the EPIC award is in progress. The first gas from SWP and PK is expected by during 2009