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New Delhi, The government on Tuesday increased the <keyword id="14716344" type="General" weightage="20" keywordseo="windfall-profit-tax" source="Orion">windfall profit tax</keyword> on <keyword id="45185" type="General" weightage="20" keywordseo="crude-oil" source="Orion">crude oil</keyword> produced in the country and reduced the levy on exports of diesel. The tax, levied in the form of Special Additional Excise Duty or SAED, on domestically produced crude oil was increased to Rs 9,800 per tonne from Rs 9,050 a tonne, according to an official notification. SAED on the export of diesel was reduced to Rs 2 per litre from Rs 4 a litre and on <keyword id="19342328" type="General" weightage="20" keywordseo="jet-fuel-or-ATF" source="Orion">jet fuel or ATF</keyword> to nil from Rs 1, the notification said. SAED on export of petrol will continue to be zero. The new tax rates will come into effect from Wednesday. India first imposed <keyword id="2378386" type="General" weightage="20" keywordseo="windfall-profit" source="Orion">windfall profit</keyword> taxes on July 1 last year, joining a growing number of nations that tax supernormal profits of energy companies. At that time, export duties of Rs 6 per litre (USD 12 per barrel) each were levied on petrol and ATF and Rs 13 a litre (USD 26 a barrel) on diesel. A Rs 23,250 per tonne (USD 40 per barrel) windfall profit tax on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) was also levied. The tax rates are reviewed every fortnight based on average oil prices in the previous two weeks. A windfall tax is levied on domestic crude oil if rates of the global benchmark rise above USD 75 per barrel. Export of diesel, ATF and petrol attract the levy if product cracks (or margins) rise above USD 20 per barrel. Product cracks or margins are the difference between crude oil (raw material) and finished petroleum products. International crude oil prices averaged USD 90.17 per barrel in October. The levy on domestic crude oil dropped to nil in the first half of April as international crude oil prices fell but was back in the second half in step with a rise in rates. Levy on diesel became nil in April but the levy was brought back in August. Levy on ATF became nil in March and was brought back in second half of August. The export tax on petrol was scrapped in the very first review. Crude oil pumped out of the ground and from below the seabed is refined and converted into fuels like petrol, diesel and aviation turbine fuel (ATF). Reliance Industries Ltd, which operates the world's largest single-location oil refinery complex at Jamnagar in Gujarat, and Rosneft-backed Nayara Energy are primary exporters of fuel in the country.

Govt hikes windfall profit tax on crude oil, cuts levy on diesel exports

The special additional excise duty on exports of crude, petrol, diesel, and aviation turbine fuel announced by the <keyword id="6378065" type="General" weightage="50" keywordseo="central" source="Orion">Central</keyword> government recently will not have any major impact on <keyword id="6487" type="General" weightage="50" keywordseo="reliance-industries-ltd" source="Orion">Reliance Industries Ltd</keyword> (<keyword id="6484187" type="General" weightage="80" keywordseo="ril" source="Orion">RIL</keyword>), said experts. The experts also said the additional duties will more than compensate the government which had cut the excise duty on petrol and diesel in May. "With fuel export tax for refiners being reviewed every fortnight, we see limited impact on RIL's earnings, with above mid-cycle margins achievable despite the tax. However, stock implies cap at single-digit margins," said <keyword id="48670" type="General" weightage="50" keywordseo="morgan-stanley" source="Orion">Morgan Stanley</keyword> in a research report. The Centre announced the levy of additional excise duty/cess of Rs 6/litre on petrol and Rs 13/litre on diesel exports. The government also announced the levy of additional excise duty/cess of Rs 23,250/tonne on crude oil as special additional excise duty, since domestic crude producers sell to domestic refineries at international parity prices, and as a result, are making windfall gains. Similarly in the case of aviation turbine fuel (ATF) exports, a special additional excise duty of Rs 6/litre was announced. While crude prices have increased sharply in recent months, the prices of diesel and petrol have shown a sharper increase, the government had said. The refiners export these products at globally prevailing prices, which are very high. As exports are becoming highly remunerative, it has been seen that certain refiners are drying out their pumps in the domestic market, the government had said. According to the Morgan Stanley report, the government regulations implies a permanent $6-7/bbl (barrel of crude oil) lower refinery margin for RIL. "With the government looking to review the tax every fortnight, RIL can sustain refinery margins at $15/bbl or above despite the tax as refining markets remain very tight." Even a $15/bbl gross refinery margin (GRM) would imply earnings upgrades and not downgrades to Street estimates, says Morgan Stanley. However, the tax does affect multiples considering RIL had not seen government interference in the oil-to-chemical (O2C) Ain the past, it added. In its research report, <keyword id="48085" type="General" weightage="80" keywordseo="credit-suisse" source="Orion">Credit Suisse</keyword> said the blended impact on RIL from cess on export of petroleum products is about $7-8/bbl, translating to an annualised impact of $3.5-4.0bn on EBITDA. "The key thing to note here is that this impact is not on base profits but is on the excess profits, as current refining margins are very high. In our interaction with investors, the key questions were around the duration of applicability of this cess and the time lag impact on RIL, if refining cracks were to correct but the cess continues for a quarter or two," Credit Suisse said. According to Credit Suisse, RIL was generating mid-cycle GRM of $8-9/bbl. Hence, it needs refining margins to sustain at at-least $17-18/bbl for minimal impact on the base business profitability (current GRM is high at $30/bbl+, thus, the buffer is still high). The recent cess on export of petroleum products will more than compensate the Central government that cut the excise duty on petrol by Rs 8/litre and on diesel by Rs 6/litre in May 2022, <keyword id="5205080" type="General" weightage="50" keywordseo="credit-suisee" source="Orion">Credit Suisee</keyword> said. The excise duty cut had impacted the government's tax revenue by Rs 1 trillion on an annualised basis. "As per today's notification, it imposed duty on domestically produced crude (by $40/bbl.) and on export of petrol, diesel and ATF (cess of Rs 13/litre on diesel and Rs 6/itre each on petrol and ATF). This can possibly fetch about Rs 1.4 trillion on annualized basis for the government," Credit Suisse said. The key question for oil marketing companies (<keyword id="73965" type="General" weightage="50" keywordseo="omc" source="Orion">OMC</keyword>) is if the government will use part of this gain to compensate for loss in the marketing segment. The key variable here is sustenance of high refining margins (if crude prices drop, then the marketing losses for OMCs would drop too), Credit Suisse report said. In its report J.P. Morgan said the windfall fuel taxes adds regulatory risks to the market. The government's measures on oil/gold taxes could create a minor 'China-style' regulatory overhang on Indian equities, J.P. Morgan said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/politics/news/who-will-get-the-party-symbol-bow-and-arrow-if-shiv-sena-splits/articleshow/92611630.cms">It’s not the CM seat but the one who wields ‘bow and arrow’ will be the Sena head</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/ban-on-single-use-plastic-kicks-in-across-india-as-the-country-recognises-the-choking-impacts-of-plastic-waste-on-the-environment/articleshow/92600992.cms">Ban on single-use plastic kicks in across India as the country recognises the choking impacts of plastic waste on the environment</a>

Windfall taxes won't take the wind off Reliance's earnings say experts

In a bid to pump some life into its fuel business, <a href="http://www.businessinsider.in/searchresult.cms?query=mukesh+ambani&amp;sortorder=effectivedate">Mukesh </a><a href="http://www.businessinsider.in/searchresult.cms?query=mukesh+ambani&amp;sortorder=effectivedate">Ambani</a>-led <a href="http://www.businessinsider.in/searchresult.cms?query=reliance+industries&amp;sortorder=effectivedate">Reliance Industries</a> (RIL) is going to merge its petrol pumps with retail and come out with a concept for <a href="http://www.businessinsider.in/searchresult.cms?query=fuel+retail&amp;sortorder=effectivedate">fuel retail</a>, which is a hit in US and Europe. 
 
RIL has merged 361 of its fuel pumps with its organised retail business, which includes digital, fashion and lifestyle businesses. 
 
"It is no longer simply a <a href="http://www.businessinsider.in/searchresult.cms?query=petrol+pumps&amp;sortorder=effectivedate">petrol pump</a>. Today, what you can do with <keyword id="2627228" type="UNKNOWN" weightage="20" keywordseo="fuel-retail">fuel retail</keyword> outlets by virtue of the synergies make it a more consumer facing business, that is why we are clubbing it with retail," V Srikanth, joint chief financial officer at RIL, told ET. 
 
RIL enhanced fuel retail business following government’s deregulation of diesel prices in October 2014. 
 
RIL, which was earlier targeting to restart its 1,500 fuel retail outlets by March 2016, will see these outlets restarting by the end of the current fiscal. 
 
"RIL plans to expand its retail presence through these petrol pumps. It will add 'square feet' to its retail business and increase the revenue of petrol pumps too," a source in the know told ET. 
 
RIL plans to develop the real estate at these fuel retail outlets with stores offering non-fuel consumer products. The concept of mixing non-fuel retail stores with petrol pumps is a hit in the US and Europe.

Imagine buying clothes at a petrol pump? Yes, Reliance Industries is going to make it happen

New Delhi, Dec 22 () India's biggest company Reliance Industries Ltd and UK's BP plc formalising plans to set up up petrol pumps under Jio-BP brand will impact market share of state-owned fuel retailers, Morgan Stanley said in a research report. 
 Reliance and BP last week announced further details of their retail fuel partnership, in which the British firm has taken 49 per cent stake for USD 1 billion. 
 The tie-up will see RIL's 1,400 existing pump stations being ramped up to 5,500 over five years. It also will increase the lucrative aviation fuel stations from 30 to 45. 
 "Targeted fuel station additions would be nearly equivalent to two-thirds of annual station additions by (state-owned) oil marketing companies (OMCs)," it said. "This should also help RIL sell more refined products domestically as refinery export restrictions ease." 
 Retail network will be under the Jio-BP brand and will cater to mobility solutions that may leverage BP's electric charging technologies and RIL's digital ecosystem. 
 "We have currently seen limited plans by OMCs on this front, however current regulations on the setup of electric charging infrastructure favour OMCs considering their reach." 
 RIL and BP expect to form their partnership by first half of 2020 and it will include convenience stores and Castrol lubricants. 
 Morgan Stanley said the overall increased competition in domestic fuel markets would re-rate multiples as fuel pricing gets delinked from government intervention. 
 "Also, contrary to the market's belief that retail fuel margins will weaken due to competition, we believe they can expand over the medium term towards regional averages, which are 1.5-2x higher than in India," it said. "If the RIL-BP venture hits its target for fuel stations, it would account for nearly 8 per cent of pump stations by 2025. We see an impact on OMCs' market share both in aviation and auto fuels." 
 It believed that market leader Indian Oil Corp (IOC) could be impacted the most, as seen over the past decade when its retail fuel market share declined by 10 percentage points (to below 40 per cent) in favour of private players. 
 "Bharat Petroleum Corp Ltd (BPCL), which has the highest exposure to highways, could see more aggressive pricing as RIL-BP would target these areas where throughput per outlet is higher," it said. "We see limited impact to HPCL considering its higher exposure to cities, which are normally tougher for new players to enter considering long-term leases even for dealer-operated stations." 
 However, both BPCL and HPCL have tried to protect market share in the past and they are seen keeping that stable going ahead. 
 In August, RIL had said BP will pay about Rs 7,000 crore for acquiring 49 per cent stake in its existing petrol pumps and aviation turbine fuel network. RIL will hold the remaining 51 per cent interest. 
 This is the third joint venture between Reliance and BP since 2011. 
 BP had in 2011 bought 30 per cent stake in 21 oil and gas exploration and production blocks of Reliance for USD 7.2 billion. At that time, another 50:50 joint venture, India Gas Solutions, was set up for sourcing and marketing gas in India. 
 The country currently has 66,408 petrol pumps, with public sector retailers owning 59,831. PSU retailers have plans to double this network and have already starting appointing dealers. 
 Russia's Rosneft-backed Nayara Energy, formerly Essar Oil, has 5,453 petrol pumps and has plans to scale them up to more than 7,000 in two-three years. 
 Royal Dutch Shell has 167 outlets and is slated to add 150-200 more petrol pumps. 
 BP had in 2016 received a licence from the government to set up 3,500 petrol pumps in India but it did not move on that authorisation. 
 French energy giant Total SA too is keen on entering the Indian retail market and has tied up with Adani Group for the same. ANZ ABM
ABM

Reliance-BP petrol pumps to dent PSU market share: Morgan Stanley

<ul><li>The joint venture between <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword> Industries and BP plans to have 5,500 retail sites and 45 aviation fuel stations over the next five years.</li><li>The fuel retailing stations will branded as Jio-BP outlets. </li><li>The JV is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.</li></ul>The success of Reliance Jio's telecom venture has made it a household name in India. Now, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> wants to extend the brand presence to the fuel retailing stations too. Along with its third-quarter earnings, Reliance Industries announced that its pact with BP will be extended to form a new Indian fuels and mobility joint venture. "The venture expects to expand from RIL’s current fuel retailing network of over 1,400 retail sites and 30 aviation fuel stations across India to up to 5,500 retail sites and 45 aviation fuel stations over the next five years," the company statement said."The retail network will operate under the Jio-BP brand," it added. The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals. BP is a one-third partner in the KG-D6 oil and gas basin along with RIL and Canadian company Niko. The two companies, RIL and BP renewed their partnership last year, eight years after they first inked a pact to work together in India.

Not just mobile services, even Reliance petrol pumps will have 'Jio' brand on them

<ul><li>The shares of <keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> opened 2.14% lower.</li><li><keyword id="10926" type="COMPANY" weightage="20" keywordseo="Reliance">Reliance</keyword> had announced its financial results on April 30 (Friday) after markets closed.</li><li>Reliance’s revenue for the fourth quarter ended March 31, 2021 stood at ₹172,095 crore, while its net profit doubled to ₹14,995 crore.</li></ul><keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>’s Reliance Industries’ earnings seemed to disappoint the markets as its stocks fell by 2.14% at 9.16 am. <div type="image" title="RIL share price May 3" msid="82364522" hostid="261"></div> The fall in stock price comes even when RIL had managed to score profits in the middle of a pandemic. Reliance’s revenue for the fourth quarter ended March 31, 2021 stood at ₹172,095 crore, while its net profit doubled to ₹14,995 crore. But some of the company’ major focus areas seemed to be wearing off their sheen. While the oil to chemical vertical saw a growth of 4.5% in revenue, the profit shrunk by just as much despite a one-time gain of ₹4,420 crore from sale of its petrol pumps. Even the much talked about Reliance Jio reported a profit decline of nearly 4% with net profit of ₹3,508 crore. The company also cited the COVID-19 pandemic and its impact on its business as a factor it continues to consider. “The outbreak of coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Group’s operations and revenue during the period were impacted due to COVID-19,” the company said in a statement on Friday. For Ambani, the growth was led by Reliance Retail. The retail arm, of Reliance Industries, clocked a 50% growth in its profits to ₹3113 crore, while its revenue has grown by 21% to ₹46,099 crore in the months from January through March, compared to the same period, last year. Reliance also announced on Saturday that it produces over 1000 MT of medical grade liquid oxygen per day — or over 11% of India’s total production. This the company claims meets “the needs of nearly every one in ten patients”. “This oxygen is being provided free-of-cost to several state governments across the country to bring immediate relief to over 1 lakh patients on a daily basis,” said the company.

Reliance Industries’ earnings disappoint markets – stocks fall by over 2% in morning trade

<keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> Ltd (RIL), India's largest company, on Thursday said its board has approved hiving off its USD 75 billion worth oil-to-chemicals business into a separate division to enable the sale of 20 per cent stake in the unit to Saudi national oil company Aramco. The hiving off will be subject to the approval of the National Company Law Tribunal. After the approval, the oil-to-chemical (O2C) business will become a separate vertical with independent balance sheet just like the conglomerate's digital arm, Jio Platforms. RIL had organised all its digital businesses including Reliance Jio that has 388 million telecom subscribers, into Jio Platforms. It last week agreed to sell a 9.99 per cent stake in Jio Platforms to <keyword id="319320" type="COMPANY" weightage="20" keywordseo="Facebook-Inc">Facebook Inc</keyword> for USD 5.7 billion. RIL Board "approved a Scheme of Arrangement for transfer of O2C Undertaking of the company to <keyword id="9147221" type="COMPANY" weightage="20" keywordseo="reliance-o2c-ltd">Reliance O2C Ltd</keyword> as a going concern on slump sale basis for a lump sum consideration equal to the income tax net worth of the O2C Undertaking as on the appointed date of the Scheme," it said in its fourth-quarter earnings statement. O2C undertaking of the company comprises entire oil-to-chemicals business of the company consisting of refining, petrochemicals, fuel retail and aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities. "The scheme is subject to necessary statutory/regulatory approvals under applicable laws including approval of National Company Law Tribunal," it added. In August last year, RIL head <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> had announced initial agreements to sell a 20 per cent stake in the oil-to-chemical business to <keyword id="152170" type="COMPANY" weightage="20" keywordseo="Saudi-Aramco">Saudi Aramco</keyword> for an asking of USD 15 billion. The deal covers all of Reliance's refining and petrochemicals assets as well as the remainder of stake the firm has in fuel retailing business after selling 49 per cent to BP Plc of UK for Rs 7,000 crore. The deal, which valued the oil-to-chemical business at USD 75 billion, was to close by March 2020 but it is now expected to close within the current calendar year. Reliance has pivoted away from energy to the new economy. But refining and petrochemicals are cash cows for Reliance and still account for the bulk of its EBITDA. As part of the August deal, Saudi Aramco will supply 500,000 barrels per day (25 million tonnes a year) of crude on a long-term basis to RIL's Jamnagar refinery complex (more than a third of the 1.36 million bpd refining capacity). The deals give Aramco and BP access to the fastest-growing refined fuels market in the world. Market analyst firm Bernstein in a recent report had stated that it expects RIL to grow their petrochemical and refining business given the secular growth opportunities. "While bears will argue that Reliance is stepping away from energy to digital, we see this deal as an opportunity to expand the downstream business in India with a solid partnership. For Aramco, the deal provides direct access to what is widely expected to be the fastest-growing refined oil product market over the next 20 years," it said. "For Reliance, it provides cash to fund the expansion of their digital business and further expansion of downstream capacity with an experienced partner." While talks with Aramco continue, the BP deal has been finalised. Reliance's existing 1,400-odd petrol pumps, as well as 31 aviation fuel stations, will be transferred to the new joint venture where BP will hold 49 per cent equity stake. Reliance will hold the balance 51 per cent in the entity, which aims to expand the retail network to 5,500 petrol pumps in the next five years. This is the third joint venture between Reliance and BP since 2011. BP had in 2011 bought 30 per cent stake in 21 oil and gas exploration and production blocks of Reliance for USD 7.2 billion. At that time, another 50:50 joint venture, <keyword id="838593" type="COMPANY" weightage="20" keywordseo="India-Gas-Solutions">India Gas Solutions</keyword>, was set up for sourcing and marketing gas in India. The country currently has 69,109 petrol pumps, with public sector retailers owning 61,811. PSU retailers have plans to double this network and have already started appointing dealers. Russia's Rosneft-backed Nayara Energy, formerly Essar Oil, has 5,702 petrol pumps and has plans to scale them up to more than 7,000 in two-three years. Royal Dutch Shell has 189 outlets and is slated to add 150-200 more petrol pumps. BP had in 2016 received a licence from the government to set up 3,500 petrol pumps in India. French energy giant Total SA too is keen on entering the Indian retail market and has tied up with Adani Group for the same. The Saudi national oil company, along with its partner UAE's Abu Dabhi National Oil Co (ADNOC) has taken a 50 per cent stake in a planned USD 60-billion mega refinery-cum-petrochemical complex in Maharashtra by state-owned oil companies, and has a bullish outlook on India's energy demand and is keen on investing here. Reliance operates two refineries in Jamnagar, Gujarat, with a total capacity of 68.2 million tonnes per annum. It plans to expand its only-for-exports special economic zone (SEZ) refining capacity to just over 41 million tonnes from the current 35.2 million tonnes. Saudi Arabia, on the other hand, is keen to get a foothold in the world's fastest-growing fuel market to get a captive customer for the crude oil it produces. Crude oil is the basic raw material for the manufacturing of petrochemicals. Saudi Aramco is also keen on retailing fuel in India. A refinery in India can also be a base for it to export fuel to deficit countries in Europe and the Americas. India has a refining capacity of 249.9 million tonnes, which exceeded the demand of 213.7 million tonnes. See also: <a href="https://www.businessinsider.in/business/corporates/news/ril-rights-issue-ratio-pricing-and-value/articleshow/75474592.cms">Mukesh Ambani offers Reliance Industries shareholders 1 new share for every 15 held⁠— at a price 14% below market value</a> <a href="https://www.businessinsider.in/business/news/reliance-retails-operating-profit-grows-nearly-20-in-the-latest-fourth-quarter/articleshow/75474722.cms">Reliance Retail’s operating profit grows nearly 20% in the latest fourth quarter⁠⁠</a> <a href="https://www.businessinsider.in/business/news/tech-mahindras-net-profits-see-a-massive-32-drop-even-as-its-digital-business-is-treading-water-amidst-the-covid-19-crisis/articleshow/75472198.cms">Tech Mahindra’s net profits see a massive 32% drop even as its digital business is treading water amidst the COVID-19 crisis</a>

Reliance to hive off $75 billion oil-to-chemicals business into separate unit for sale to Aramco

<ul><li>The <keyword id="44555" type="CITY" weightage="20" keywordseo="BPCL">BPCL</keyword> stocks lost over 13% since March, and a stake sale at this point may yield the government less funds from divestment. </li><li>It can also spoil the prospects of oil giants like Saudi’s Aramco, which was planning to pour billions to buy a stake in Reliance Industries (RIL). </li></ul>The crude oil price futures went where no one expected them to go — below zero. While it inspired jokes that a trip to the petrol pump might yield money, there is nothing funny about its effects. Hundreds of<a href="https://edition.cnn.com/2020/04/20/business/oil-price-crash-bankruptcy/index.html"> US companies</a> are expected to go bankrupt and Indian economy is not immune to it either. “The oil price crash has brought the major oil companies on its knees, the way in which we were expecting them to start putting money into India, those pathways have been closed,” said Mihir Sharma from Observer Research Foundation. <div type="Article" hostid="261" msid="75264311" title="Here’s why a crude oil crash won't reflect fast on your petrol and diesel bills" mstype="2" mssubtype="0"></div> A lot of funds that Indian companies and the government were looking to raise, might be clouded by this historic crash. The biggest of them are state owned oil refiner BPCL’s divestment, and $15 billion billion deal between Reliance Industries and Saudi Aramco. “We expected that maybe there would be people from the oil industry who will participate in driving BPCL stock price up as in when the government began to sell it. Those companies are currently looking for better ways that they can put their cash reserves to use,” Sharma added. BPCL stake sale may get delayed Crude oil crash is not at all good news for the Bharat Petroleum Corporation (BPCL) divestment plans of the government. The BPCL stock lost over 13% since the start of March, and the stake sale at this point may leave less in the government’s kitty. At a time when the profits of large oil firms are under stress, it is very unlikely that any petroleum major will loosen their purse strings, an analyst at a domestic brokerage told <a href="https://www.business-standard.com/article/companies/bpcl-stake-sale-may-get-delayed-over-falling-oil-prices-market-crash-120030901154_1.html">Business Standard</a>. The lower crude prices also put potential players under stress, who could have acquired the stake in BPCL. <div type="Article" hostid="261" msid="75242870" title="The $452 million Unilever-GSK deal had to be changed because India’s love for Horlicks is worth billions" mstype="2" mssubtype="0"></div> “If the BPCL divestment took place in January to March quarter, India would have been lucky to have that happen,”said Deven Choksey of Kisan Ratilal Choksey Investment told Business Insider. But it did not, and now it might not happen anytime soon. Aramco might hold back on RIL The crash can also spoil the prospects of oil giants like Saudi’s Aramco, which was planning to pour billions into Reliance Industries (RIL). Saudi Aramco, which is one of the world’s largest oil producers, will also see a dip in fortunes. The country along with other OPEC nations, have been cutting down on production to keep up with the slowing demand due to the Coronavirus pandemic. “We thought that Aramco would put money into RIL, but after this oil price crash, many companies are now looking for the ways that they can put their cash reserves to use,” said Sharma. Last August, RIL sealed a deal with Aramco which was expected to buy 20% stake in the former’s oil business. It was supposed to close by the end of March which seems to have been delayed. Although the lockdown was necessary to stop the COVID-19 impact from spreading further, the harm it has done to the global economy may take years to recover, said Sharma. <div type="Article" hostid="261" msid="75265826" title="Coronavirus cases in India rise to 18,601— 3,252 cured and 590 dead as of April 21" mstype="2" mssubtype="0"></div>

Crude oil crash might affect RIL-Aramco deal, BPCL divestment and much more

New Delhi, Jan 19 () Reliance Industries Ltd (RIL) has outpaced industry in clocking double digit sales growth in petrol and diesel from its nearly 1,400-odd petrol pumps in the third quarter ended December 31, 2019.
In an investor presentation post announcing earnings for October-December 2019, Reliance, operator of the world's largest oil refining complex, said it registered an 11 per cent growth in diesel sales and 15 per cent growth rate in petrol sales from its 1,394 fuel retail outlets.
This is compared to industry growth rate of 0.2 per cent for diesel and 7.1 per cent for petrol.
Its per outlet throughput at 342 kilolitres per month was also nearly double that of petrol pumps operated by public sector firms such as Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL).
"Superior product mix and high asset utilisation underpinned strong earnings," it said in the presentation adding India's oil demand grew 3.2 per cent in October-December with petrol demand rising 7.1 per cent and LPG surging by 15 per cent.
"Preference for petrol cars, improving road infrastructure and rural connectivity is driving petrol demand," it said. A pick up in tourist movement post festive season provided support to ATF demand.
Reliance said there was a strong traction in retail and bulk fuel sales through its network.
"Growth driven by focus on large fleet customers (25 per cent year-on-year growth), fleet aggregators (114 per cent)," it said.
Its ATF sales were driving up via new customer acquisition and higher share from existing customers. "Improved ATF network competitiveness through logistical and supply source optimization," the presentation said.
LPG sales was up 37 per cent with new customers and increasing penetration in new markets.
Reliance said its petro retail sales revenues were up 5 per cent at Rs 3,725 crore in the third quarter. As much as 538 million litres of fuel was sold in the three month period.
Of the 1,394 petrol pumps that Reliance operates, 518 are company owned and the remaining dealer operated.
In April last year, Reliance agreed to sell 49 per cent in its petro retail business to UK's BP plc for Rs 7,000 crore. Reliance-BP joint venture agreed to expand the network to 5,500 in the next five years.
The country currently has 66,817 petrol pumps, with public sector retailers owning 59,716. PSU retailers have plans to double this network and have already starting appointing dealers. 
Russia's Rosneft-backed Nayara Energy, formerly Essar Oil, has 5,525 petrol pumps and has plans to scale them up to more than 7,000 in two-three years. 
Royal Dutch Shell has 169 outlets and is slated to add 150-200 more petrol pumps. ANZ MKJ

Reliance outpaces industry in petrol, diesel sales from its outlets

New Delhi, Jul 5 () Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) plans to increase its network of aviation fuel stations by 50 per cent as it looks to capture greater market share in the business currently controlled by public sector oil retailing firms. In its latest annual report, RIL said the double-digit growth observed over 52 consecutive months might have been stalled due to the COVID-19 pandemic, but India continues to be one of the fastest growing aviation markets in the world for the fifth consecutive year. RIL, which operates the world's largest single location oil refining complex, plans to capture this opportunity through increased presence at airports to refuel airplanes. Air-passenger traffic in India rose 9 per cent even in February after the Indian carriers recouped to full capacity that was lowered following the closure of a major domestic carrier in the first few months of financial year 2019-20 (April 2019 to March 2020) as well as disruptions at Mumbai airport owing to construction and maintenance, it said. Following the COVID-19 pandemic, while travel restrictions were being imposed elsewhere, India was largely unaffected till the end of March 2020, before the sharp escalation in travel bans globally and lockdowns impacted India's aviation sector too. "On account of its network strength, cost competitiveness, industry leading technology and best-in-class service standards, RIL improved its volume share in the domestic market," according to the annual report. Reliance Aviation has the highest market share in 20 per cent of the operating airports. "RIL is looking to increase its network to 45 locations as against 30 at the end of FY 2019-20 and is well geared to benefit with the growth in the Indian aviation market," it said. India currently has 256 aviation fuel stations, with state-owned Indian Oil Corp (IOC) owning 119 of them. Bharat Petroleum Corp Ltd (BPCL) has 61 and Hindustan Petroleum Corp Ltd (HPCL) the remaining 44. RIL is the largest private aviation fuel retailer with 31 stations, according to the latest data from the oil ministry. In comparison, RIL's auto fuel retailing network is very small. Out of 69,392 petrol pumps in the country, RIL operates 1,398. IOC has the highest number of outlets at 29,208, followed by HPCL with 16,557 and BPCL with 16,309 petrol pumps. Russia's Rosneft-backed Nayara Energy is the biggest private auto fuel retailer with 5,720 petrol pumps. RIL said it registered 9.8 per cent growth in retail diesel sales and 14.7 per cent in retail petrol volume as compared with 1.5 per cent and 6.3 per cent for industry, respectively. During financial year 2019-20, RIL registered over 10 per cent growth in average outlet sales volume. On bulk diesel, RIL said it registered a volume growth of 10.8 per cent, increasing market share to 8.8 per cent, despite expected demand contraction and margin pressure. Direct sales volume would be driven by continued volume growth from railways and sourcing higher volume shares in State Transport Units (STUs), it said. ANZ RVK

Reliance plans to up aviation fuel stations by 50 pc

New Delhi, Jul 9 () Global energy supermajor BP plc and Reliance Industries Ltd on Thursday announced the start of their fuel retailing joint venture under the brand 'Jio-bp'. BP had last year bought 49 per cent stake in the 1,400-odd petrol pumps and 31 aviation turbine fuel (ATF) stations owned by Reliance Industries Ltd (RIL) for USD 1 billion. The joint venture, where RIL holds the remaining 51 per cent, has now commenced operations. "Following initial agreements in 2019, bp and RIL teams have worked closely over the past few months in a challenging environment to complete the transaction as planned," the companies said in a joint statement, adding the new fuels and mobility joint venture, Reliance BP Mobility Ltd (RBML), has started operations. Operating under the 'Jio-bp' brand, the joint venture aims to become a leading player in India's fuels and mobility markets. RBML has received the marketing authorisation for transportation fuels, amongst other necessary regulatory and statutory approvals. The joint venture will begin selling fuels and Castrol lubricants with immediate effect from its existing retail outlets, which will be rebranded to 'Jio-bp' in due course. "It will leverage Reliance's presence across 21 states and its millions of consumers through the Jio digital platform. bp will bring its extensive global experience in high-quality differentiated fuels, lubricants, retail, and advanced low carbon mobility solutions," the statement said. India's auto fuel retailing is dominated by public sector oil companies that own the majority of 69,392 petrol pumps in the country. State-owned IOC, BPCL and HPCL own 62,072 petrol pumps and 224 out of the 256 aviation fuel stations in the country. BP and RIL said they expect the venture to grow rapidly to help meet India's fast-growing demands for energy and mobility. "India is expected to be the fastest-growing fuel market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost six-fold over the period. RBML aims to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years," the statement said. This rapid growth will require a four-fold increase in staff employed in service stations -- growing from 20,000 to 80,000 in this period. The joint venture also aims to increase its presence from 30 to 45 airports in the coming years. RIL Chairman and Managing Director Mukesh Ambani said: "Reliance is expanding on its strong and valued partnership with bp, to establish a pan-Indian presence in retail and aviation fuels. RBML will aim to be a leader in mobility and low carbon solutions, bringing cleaner and affordable options for Indian consumers with digital and technology being our key enablers." Bernard Looney, BP chief executive officer, said India has been leading the way with innovations in digital technology, value engineering and new energy solutions. "It is a country that will require more energy for its economic growth and, as it prospers, its needs for mobility and convenience will accelerate. bp has a proud history in India spanning over a century. We are honoured to be a strategic partner with Reliance - India's most valuable company - and pleased that our partnership has grown in both substance and spirit over this past decade," he said. The new joint venture aspires to provide Indian consumers with advanced fuels with lower emissions, electric vehicle charging and other low carbon solutions over time. RBML is also committed to the decarbonisation of its own operations as well as that of its wider ecosystem, the statement said. With its many investments in India and employing around 7,500 people in the oil, gas, lubricants, and petrochemical businesses, BP is one of the largest international energy companies in India. In addition to its gas value chain, retail, aviation fuels, and mobility alliance with RIL, BP's activities include Castrol lubricants, oil and gas trading, clean energy projects through investment in Lightsource bp, IT back-office activities and a new global business services centre. BP owns 33.3 per cent stake in RIL-operated gas blocks in eastern offshore including the flagging KG-D6 block. ANZ ANZ ABM ABM

BP, Reliance to retail fuel under 'Jio-bp' brand

<ul><li>The <keyword id="3820" type="COMPANY" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> owned conglomerate, <keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword>, has more than doubled its net profits in the final quarter of 2021 despite the pressures of the pandemic as compared to the same quarter last year.</li><li>Retail is leading the growth, but oil is continuing to struggle and Jio looks like it needs to figure out how to mint more money.</li><li>Investors have a reason to cheer with the company announcing a dividend of ₹7 per share. </li></ul>A big chunk of Mukesh Ambani’s businesses are not doing as well as expected, but his company, Reliance Industries, has still managed to double its net profit between January and March this year, as compared to the same time last year. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/6015344"></div>]]></cdata></div> While the oil to chemical vertical saw a growth of 4.5% in revenue, the profit shrunk by just as much despite a one-time gain of ₹4,420 crore from sale of its petrol pumps. “The increase in revenue was primarily due to higher volumes in transportation fuels and better price realisations,” the company statement said. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/6015803"></div>]]></cdata></div> The shares of RIL are up/down 17% since September 2020. Investment bank <keyword id="6361649" type="COMPANY" weightage="20" keywordseo="Goldman-Sachs">Goldman Sachs</keyword> had expected a rebound in the oil to chemical vertical but that seems to have fallen short of expectation. These are segment wise results: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Segment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Operating profit growth Jan-March 2021 vs year earlier </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oil to chemical </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4.6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oil to gas </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">122% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">50.24% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Digital services (Jio) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">31.73% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Financial services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-59% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Others </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-33.21% </td></tr></tbody></table> Meanwhile, <a href="https://www.businessinsider.in/business/telecom/news/mukesh-ambanis-reliance-jio-is-making-less-money-off-its-subscribers-than-it-did-12-months-ago/articleshow/82331233.cms">Reliance Jio</a> has reported a profit decline of nearly 4% with net profit of ₹3,508 crore. Jio added over 15 million new subscribers between January to March, after a disappointing December quarter. But most of them are low-paying users, who use Jio as a second phone for cheaper plans. That means most people still look at their Jio sim cards as a secondary option — not their primary point of contact.

You Searched For "RIL petrol pumps" and got 12 results

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