RIL diversifies crude sourcing, redirects exports amid Middle East disruptions
Diversified crude supplies and a shift in export destinations helped the company navigate disruptions and capture stronger refining margins during the quarter
Reliance Industries Ltd (RIL) has diversified its crude sourcing to Latin America, North America, and the Mediterranean region, while redirecting exports to markets with better realisations to navigate disruptions in the Middle East. This strategy has enabled the company to maintain record crude processing levels and capitalize on stronger global refining margins in the second quarter of FY27.
The company sustained its refinery operations by tapping alternative crude supplies, despite surging freight rates and widening price differentials for Arab Gulf crude. RIL's Oil-to-Chemicals (O2C) business delivered strong performance, with segment revenue rising 44% year-on-year to ₹2,31,601 crore, and EBITDA surging 68% to ₹25,203 crore, driven by strong transportation fuel cracks and improved downstream petrochemical margins.
However, higher crude oil premiums, elevated freight costs, and under-recoveries in domestic fuel retail partially offset the gains. The Oil and Gas exploration and production business reported a marginal 0.6% decline in revenue and a 2% fall in EBITDA due to lower production and price realization from the KG-D6 gas fields.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
