• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 3 hours Starvation, horror in Venezuela
  • 30 mins The EU Loses The Principles On Which It Was Built
  • 5 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 20 mins Crude Price going to $62.50
  • 10 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 3 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 3 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 15 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 14 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 14 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 16 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 21 hours Saudi Aramco IPO Seems Unlikely
  • 6 hours < sigh > $90 Oil Is A Very Real Possibility
Why Saudi Oil Production Suddenly Dropped

Why Saudi Oil Production Suddenly Dropped

Oil prices jumped on Monday…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

World’s Largest Oil Refinery Increases Profit Despite Tough Market

Refining industry

India-based Reliance Industries boasted a 10 percent increase in profits on Monday for the fourth quarter of 2016, according to the company’s latest corporate report.

The conglomerate’s refining operations saw profitability jump over the past three months to $10.80 per barrel, compared to $10.10 in the third quarter of last year.

Reliance—which owns what is possibly the world’s largest refinery—has delivered "record performances in challenging market conditions," Ambani said in a statement accompanying the data release.

The oil price crisis has forced several oil and gas explorers and refiners to close up shop over the past two years. The Organization of Petroleum Exporting Countries’ (OPEC) recent deal to cap output is expected to help barrel prices recover in the coming years.

Reliance’s overall profits rose to US$1.18 billion, with revenues for the company owned by the South Asian country’s richest man – Mukesh Ambani – up nine percent. Bloomberg’s survey of 11 industry experts only estimated net profits to reach US$1.15 billion.

"I believe even in the next financial year, we will see a substantial jump in earnings before interest, tax and depreciation," Srikanth Venkatachari, the company’s Joint Chief Financial Officer, told a news conference on Monday, deriving his prediction from the expected success of a $15 billion capital spending program that will add two new massive refineries to the company’s portfolio.

Related: Indonesia Just Rocked The Mining World With This Unexpected Move

Having begun as a textiles manufacturer, Reliance Industries created dedicated subsidiaries that have had a spectacular run since they burst onto the world scene in 2008. The oil wing owns the world’s biggest refinery at Jamnagar in Gujarat, with a capacity of 1.24 million barrels per day.

However, Ambani’s rise may not have been to everyone’s liking: one of the first actions of Narendra Modi’s new government was to hit Reliance with a $579 million fine, only the latest in a series of penalties stemming from the corporation’s failure to meet legally binding gas production commitments from the gas fields it operates in India.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News