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Reliance sees bottom line improve

Indian giant shakes off poor performance of E&P sector as other segments boost profits

India’s Reliance Industries posted a higher profit for the 2019 June quarter, despite a weaker performance from its oil and gas segment.

The company posted a profit of 101.04 billion rupees ($1.5 billion) for the three months to 30 June, an improvement on the 94.59 billion rupee profit booked over the same period a year earlier.

This came as revenues rose 22.1%, year-on-year, to 1.73 trillion rupee, up from nearly 1.42 trillion rupee over the same quarter last year.

“Our first quarter earnings were strong despite weak global macroeconomic environment and challenging hydrocarbon market conditions,” Reliance Industries managing director Mukesh D Ambani said.

“Our downstream businesses delivered resilient performance in an environment of slower demand growth and incremental supplies. The performance reflects the benefits of deep refining and petrochemicals integration, chain economics and feedstock flexibility.”

The strong performance of Reliance’s other business segments, particularly refining and marketing, helped offset weaker results from the exploration and production business.

Revenue from the E&P segment fell from 14.3 billion rupees to in the 2018 June quarter to 9.2 billion rupee in the recent quarter as output slipped from 46.6 billion cubic feet equivalent to 30.5 Bcfe.

Reliance attributed the lower figures to a 35% decline in domestic production and a 34% drop in output from its US shale operations.

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