Profit booking weighs on RIL

Meanwhile, the BSE Sensex was down 80.88 points, or 0.47% at 17,084.66.

On BSE, 3.16 lakh shares were traded in the counter compared to the average volume of 8.94 lakh shares during the last two weeks.

The stock reached a high of Rs 858.40 and a low of Rs 837.40 so far during the day.

Shares of Reliance Industries (RIL) rose 2.62% to 853.50 rupees, Thursday, September 8, 2011, after the company said it has set a global benchmark for the effective implementation of project and capital costs efficient and competitive in the block KG D6 gas production in Krishna Godavari basin. EIR issued the statement during trading hours on Thursday after the Comptroller and Auditor General of India or the CAG said in its final report submitted to parliament Thursday, September 8, 2011, as initially estimated capital costs RIL D-1 and D-3 gas discovery in $ 2.4 million, later revised to 8.8 million NRI online trading account.

The report said that RIL has started to implement the revised capital expenditure plans, before they were approved by the government. The report also found that RIL did not give a little ‘less of a priority for the KG D6 block, which the government would be able to give other companies the further studies.

RIL said that it is unable to comment on the report of the CAG final, he has not seen the contents of the final report. RIL said it had already given detailed comments and the opinions of international experts on the report of the ACG project in Ministry of Petroleum and Natural Gas (MOPNG), Directorate General of Hydrocarbons (GH) and the CAG. RIL said he hopes his detailed response, and the views of industry groups, experts have been duly taken into consideration when finalizing the audit report by the CAG.

RIL said reiterating that, as a businessman, who remains determined to fulfill the PSC (Production Sharing Contract) rules and procedures, including the adoption of best international practices in the oil industry (GIPIP) in its operations. Like many comments on the draft report related to technical aspects, the company had offered to the CAG full and complete interaction with experts, RIL said. RIL also said it remains open for interaction at any time. RIL also said it would cooperate with the Government of India to audit in accordance with the provisions of the PSC NRI Demat account .

Europe’s second largest oil company BP Plc, last month acquired a 30% stake in 21 oil and gas blocks in the RIL is India. RIL, BP will pay a total of $ 7.2 billion decision to apply adjustments to the acquired interests in 21 production sharing agreements, the company said in a joint statement at the end of last month. In addition, performance payments up to $ 1.8 billion would be paid based on successful exploration, which leads to the development of commercial discoveries, the two companies said.

The original proposal was to sell stake in RIL blocks 23 to BP for $ 7.2 billion. The government has approved only 21 blocks, RIL said it would continue to seek approval for the two remaining blocks PAN Card for NRI .

RIL’s net income rose to Rs 5661 crore on 16.69% increase from 39.1% in net sales of Rs 81.018 million rupees in June 2011 in Q1 Q1 June 2010. RIL’s operating profit margin (OPM) declined sharply to 12.25% in Q1 June 2011 16.04% in Q1 June 2010 as the weak performance of oil and gas and petrochemical segment offset strong performance of the refining .

RIL gross refining margins (GRM) increased to 10.3 dollars per barrel, from $ 7.3 per barrel in the first district in June 2010. Gas production from RIL KG-D6 field on the east coast has dropped from 18% to 156.2 billion cubic feet (BCF) in the first quarter, in June 2011 at the First District in June 2010. The production of gas condensate from the deposited jumped from 81.6% to 0.21 million barrels in the first quarter, in June 2011 in the first district in June 2010. The company reported sales of gas were prioritized according to the government directive, effective May 9, 2011. The result was announced July 25, 2011.

Commenting on first quarter results, Chairman and Managing Director Mukesh Ambani and RIL had said Reliance Industries continues to deliver strong financial results and operations. Earnings growth was driven by strong refining margins and a strong performance in the petrochemical sector. Our cash flow gives us the opportunity to allocate capital to the most resource plays margin in key markets around the world. We remain committed to investing in India and started the program of investment in the petrochemical sector.

RIL operations cover the exploration and production of oil and gas, refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retail and Infotel. RIL is the largest producer of spun polyester fibers and the world and 55 among the nine major world producers of petrochemicals.


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