Reliance Industries Ltd (RIL) will be reporting Q2FY22 earnings after market hours on Friday. The oil-to-chemical (O2C) Business is expected to see a rebound both on quarter on quarter (QoQ) and on a year on year (YoY) basis.
Singapore gross refining margins (GRMs) have seen a sharp uptick, they have doubled on a QoQ basis to USD 3.7 per barrel due to higher demand and better product cracks and now they are trading somewhere around USD 7 per barrel, so the bullish trend continues.
ALSO READ
Because of this, Nomura expects the refining EBIT to rise to around 53 percent on a sequential basis to Rs 4,600 crore. However, petchem segment which has been strong so far will see some moderation as petchem prices have seen some decline.
At the same time, raw material prices like naphtha and gas prices have seen an increase. That would mean lower spreads.
Nomura expects a 15 percent decline in petchem EBIT quarter-on-quarter.
Overall, EBITDA for the O2C business is expected to come in at Rs 12,693 crore which is a 4 percent sequential growth and 42 percent growth YoY.
Watch the accompanying video of CNBC-TV18’s Sonal Bhutra for more details.
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Catch all market updates here.
(Edited by : Abhishek Jha)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Bhopal Lok Sabha Elections 2024: BJP replaces sitting MP Pragya Thakur with Alok Sharma, Cong fields Arun Srivastava
May 7, 2024 8:23 AM