Europe’s diesel shortage could lift Reliance’s O2C earnings 38% to ₹20,700 crore in Q2
The O2C business is expected to account for nearly three-fourths of Reliance Industries’ projected ₹7,800-crore increase in core EBITDA
Reliance Industries could see a 38% increase in earnings from its O2C business to ₹20,700 crore in Q2, as Europe's diesel shortage lifts refining margins, according to analysis by Nuvama Institutional Equities. The segment is expected to contribute nearly three-fourths of the conglomerate's incremental operating earnings. The company's Jamnagar refinery, which benefits from export-duty exemptions and can adjust crude sourcing and direct products to markets with the strongest returns, is well-positioned to capitalize on the situation.
Reliance loaded an estimated 4-5 million barrels of diesel for European destinations in July, its highest monthly shipment level in ten months, as global diesel margins surged amid supply disruptions.
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