Mukesh Ambani's Reliance Industries is world's 3rd largest energy firm
This year, in Platts Top 250 Global Energy Company Rankings, Reliance Industries climbed up five places on the chart and became the world's third-biggest energy firm after Russia's Gazprom and Germany's E.ON. State-owned Indian Oil Corp (IOC), which was at number 66 in 2015 and 14th in 2016, has also entered the top 10 bracket and now helms at the 7th spot. Here's more.
A decent show
Another major state-run enterprise, Oil and Natural Gas Corp (ONGC) rose from the 20th position that it held last year and claimed the 11th position this year. Platts stated, "While 14 Indian energy companies made it to the S&P Global Platts Top 250 Global Energy Company Rankings, they were one short of the tally held last year."
Coal India slipped place
While Reliance Industries, the owner of world's biggest refinery complex, led the pack, other Indian firms, which made it to chart include Bharat Petroleum Corp Ltd (27), Hindustan Petroleum Corp Ltd (48), Power Grid Corp (81) and GAIL India Ltd (106). Unfortunately, the world's largest coal producer, Coal India Ltd, has slipped from the 38th position it held last year to 45th this year.
Major changes this year
In a surprising turn of events, Russia's Gazprom ended US giant ExxonMobil's 12-year streak by bagging the number one spot on the list. ExxonMobil now stands at the 9th place. Another surprise was E.ON, which sprung from 114th to the second place in the list. At number four sits South Korea's Korea Electric Power Corp followed by China Petroleum & Chemical Corp.
Why is this important?
S&P Global Platts Top 250 Global Energy Company Rankings are based on asset worth, revenues, profits, and return on invested capital (ROI) of the firms. The firm mentions on its website, "being ranked in the Top 250 Rankings is an accomplishment of prestige and honor in the energy industry." All firms that are mentioned in the list have more than $5.5 billion in assets.
What caused CIL's fall?
Platts explained CIL's fall by stating, "Coal's troubles were especially acute in Asia, with China's production falling by 7.9% or 140 million tons of oil equivalent (Mtoe), a record decline. Those headwinds translated into swings in this year's Platts rankings for coal interests." Hopefully, things will be better next year for Coal India Ltd.
