NEW DELHI: Reliance Industries Chairman Mukesh Ambani wants to be ahead of the global shift from fossil fuels to renewable energy.At the 41st AGM on Thursday, he said RIL is exploring new value creation opportunity in an environment where growth in fossil fuel demand could stagnate in a few years.RIL, Ambani said, would now be focusing on maximising oil-to-chemicals conversion and upgrade all its fuels to high-value petrochemicals.
The hydrocarbon business is thus poised for robust value creation and exciting times ahead, India's richest business tycoon said."We have successfully commissioned and stabilised the world's largest Paraxylene complex," Ambani added.
Today, Reliance is the second-largest PX producer in the world and Jamnagar has the distinction of being the largest manufacturing facility of PX in the world with 4.2 million tonne of capacity, he said.
He also announced the completion of the largest-ever cycle of investment in the companys core hydrocarbon business.
This year, we commissioned the worlds largest gasification project and completed it in record time.
The gasification project eliminates our dependence on imported natural gas, he said.The company's fourth quarter revenue from the refining and marketing segment increased by 29.8 per cent YoY to Rs 93,519 crore ($ 14.3 billion) led by 24.2 per cent YoY higher crude oil prices during the quarter.
Segment EBIT declined by 10.9 per cent YoY to Rs 5,607 crore ($ 860 million), largely on account of reduced crude throughput and adverse move in Brent-Dubai differentials.
GRM for Q4 FY18 stood at $11.0/bbl as against $11.5/bbl in Q4 FY17.
RILs GRM outperformed Singapore complex refining margins by $4/bbl.
He also signalled less reliance on the energy business for profitability, saying the shares of its consumer-oriented verticals Reliance Jio and Reliance Retail in the companys consolidated EBIDTA has grown to 13 per cent last year, from 2 per cent a year ago.He was optimistic that these verticals will soon be contributing to profitability as much as the core business.Ambani said the RIL-BP JV is seeking new opportunities to market gas in India.
The Jamnagar facility is already the worlds largest paraxylene producing unit and the worlds only fully -integrated PET resin manufacturer.
According to Ambani, RIL has also become the largest recycler of PET bottles in the country.The company is proposing a cross-border merger of RHUSA (Reliance Holding USA) with itself and targets 30-35 mmscmd gas production by 2022.
It has plans to reach full production in KG-D6 basin soon.