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Reliance Petro Q3 net at Rs 441 cr

Our Bureau

MUMBAI, Jan. 31

Reliance Petroleum Ltd (RPL) has reported a net profit of Rs 441 crore in the third quarter ended December 31, 2000. Total income was Rs 9,220 crore including Rs 71 crore other income.

After considering total expenditure of Rs 8,336 crore, interest Rs 271 crore and depreciation Rs 172 crore and nil tax, the net profit is Rs 441 crore.

This takes RPL's total operating income during the nine months period of its first year of operations to Rs 23,457 crore ($ 5.025 billion). The net profit is Rs 1,167 crore ($ 250 million).

During the third quarter, RPL recorded 101 per cent capacity utilisation and 96 per cent for the nine months period. It processed over 19.4 million tonnes of crude during nine months period.

Nearly 20 per cent of RPL's products are exported to Japan, Singapore, Malaysia, Thailand, China, Greece, Italy and the US. Total exports amounted to Rs 4,714 crore ($ 1.023 billion).

Dividend likely: Reliance Petroleum is likely to give dividend in its first year of operations. The dividend in 2001 will contribute substantially to parent company, Reliance Industries Ltd (RIL) cash flows.

RIL will consolidate the financials of group firm Reliance Petroleum Ltd (RPL) during the year 2001-02. The RPL Managing Director, Mr Anil Ambani, said that the consolidation of accounts will add about 40 per cent to RIL's bottomline and contribute about Rs 10 to RIL's earnings per share (EPS).

RIL's investment in RPL is expected to reflect consolidated return on equity (RoE) of about 28 per cent.

Many international oil companies have approached RPL to build business relationship. The relationship could be technology and/or equity partnership in RPL in a move to enhance shareholder value of RPL and its parent company, Reliance Industries Ltd (RIL) .

There were talks that RPL was likely to rope in some strategic investor. The parent company RIL was likely to divest part of its RPL equity holdings in favour of the overseas partner. There may be disinvestment of about 10 per cent of RPL equity by RIL w hich would lead to higher cash flows to RIL. Mr Ambani said that RIL will wait for RPL to complete atleast its one full year of operations.

``We are not in a hurry to take away something that is beneficial for RIL,'' Mr Ambani said. ``Let RPL complete one full year of operations, it may get better value then,'' he said.

Related links:
Reliance Petro Q2 net at Rs 402 cr

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