BENGALURU: India’s Reliance Industries has taken over from America’s largest energy company ExxonMobil as the world’s second most valuable energy company after a stock run that saw its market capitalisation rise to a record high of over $189 billion.
According to a report published by Oil Price, Reliance, an Indian multinational conglomerate saw its shares increase by 45.6 per cent in the year to date compared to ExxonMobil’s -36.8 per cent return which reduced its market capitalisation to $183.6 billion.
Reliance Industries is now India’s first company to cross a market capitalisation of $150 billion and the 46th most valuable company in the world. Saudi Arabia’s Aramco remains the world’s most valuable company with a market capitalisation of $1.76 trillion.
Currently, 80 per cent of Reliance revenue comes from its energy business. However, Reliance Chairman Mukesh Ambani plans to grow the company’s digital and retail arms.
The company’s diversification into non energy businesses has helped it clock in a net profit of about $5.3 billion in FY19. In comparison, the second-placed Indian Oil Corp. registered a net profit of only about $2.3 billion in FY19.
Earlier on Thursday, Reliance Industries reported that its June-quarter profit jumped 31 per cent, as the Indian conglomerate booked a substantial one-time gain from global oil major BP’s investment in its fuel retail business.
Reliance, led by Asia’s richest man Mukesh Ambani, said its consolidated profit rose to 132.33 billion rupees ($1.77 billion) in the three months to June 30, from 101.04 billion rupees a year earlier.
Analysts on average had expected 74.57 billion rupees, according to Refinitiv data. It was not immediately clear if the figures were comparable.
Reliance booked a one-time gain of 49.66 billion rupees ($663 million) during the quarter, reflecting BP’s deal to forge a fuel retailing joint venture with the Mumbai-headquartered firm last year.
However, revenue from operations at India’s largest company by market value slumped nearly 44 per cent to 912.38 billion rupees, hurt by losses in the company’s oil refining business as coronavirus lockdowns slammed global energy demand.
Revenue from the refining unit fell 54 per cent, said Reliance, which operates the world’s biggest oil refining complex.
Still, its Jio telecom unit – India’s biggest by subscribers – continued to remain a bright spot as revenue from the business jumped 33.7 per cent during the quarter.