As margins from refinery and petrochemicals businesses fell, along with a significant dip in oil and gas production, Reliance Industries (RIL) has reported a 21% drop in net profit for Q4 of 2011-12 fiscal at Rs 4,236 crore, its second successive drop. The drop is the sharpest decline in net profit in more than three years for India's biggest firm by market capitalization.
However, the company saw its other income grow 150% to Rs 2,295 crore, accounting for over 42% of its profits before tax. A 21% drop in its net profit was contributed by a 39% drop in EBIT of oil and gas business at Rs 951 crore, 32% drop in EBIT of refining and marketing business at Rs 1,696 crore and 17% drop in EBIT of its petrochemicals business at Rs 2,174 crore.
RIL's GRM (profit from processing every barrel of crude oil) fell 17% to US$7.6 per barrel during the quarter while the company's oil and gas production fell 38% and 24% to 4.94 mln barrels of crude and 551.31 bln cubic feet of gas, respectively. The company attributed the fall to unforeseen reservoir complexity and water ingress in the producing fields.