Indian operator Reliance Industries (RIL) has reported a 39% drop in its first quarter profits due to the fall in oil prices and weak demand caused by the Covid-19 pandemic.
The company noted that oil prices dropped 73% through the quarter, leading to an impact on inventory valuation.
RIL posted a consolidated profit of Rs63.48bn ($845m) in the first quarter that ended on 31 March.
The company has reportedly announced salary cuts of up to 10% for some employees working in the oil and gas division.
It has also deferred cash bonus and annual performance-based incentives.
Reliance Industries chairman and managing director Mukesh Ambani’s proposal to forego his entire salary has been accepted by the board.
Commenting on the results, Mukesh Ambani said: “As India and the world grapple with the biggest challenge faced by our generation, I am heartened by the robust response of Reliance to the extraordinary circumstances created by the Covid-19 pandemic.
“Therefore, the highest act of value-creation lies in saving human life, ensuring human health, and enhancing human wellbeing and happiness.
“Our O2C (Oil to Chemicals) businesses delivered sustained earnings due to its integrated portfolio, cost-competitiveness, feedstock flexibility, and product placement capabilities. We continue to operate all our major facilities at near normal utilisation levels.”
In December last year, BP and Reliance Industries signed an agreement on the formation of their new Indian fuels and mobility joint venture (JV).
