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Oil exploration firms decline after slide in oil prices

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Capital Market
Last Updated : Feb 06 2015 | 12:01 AM IST

Shares of three oil exploration and production companies fell by between 1.42% to 2.74% at 11:00 IST on BSE after crude oil prices slumped yesterday, 4 February 2015.

Meanwhile, the BSE Sensex was up 83.24 points, or 0.25%, to 28,956.34.

Among shares of oil exploration and production companies, Cairn India (down 2.74%), ONGC (down 1.86%) and Oil India (down 1.42%), edged lower.

Reliance Industries (RIL) rose 0.44%. RIL announced before market hours yesterday, 4 February 2015, that it has priced a Rule 144A/Regulation S offering of $750 million 4.875% Senior Unsecured Notes due 2045. The Notes have been assigned a rating of BBB+ (S&P) and Baa2 (Moody's). The Notes have been priced at 262.5 basis points over the 30-year US Treasury Note, at a price of 98.865 to yield 4.948%. The Notes will be denominated in US dollars, and will bear fixed interest of 4.875% p.a., with interest payable semi-annually in arrears and shall rank pari passu with all other unsecured and unsubordinated obligations of the company. The funds will be utilized for its ongoing capital expenditure.

Brent crude oil futures edged higher after big losses in the previous session, after China took steps to pour fresh liquidity into the world's second-biggest economy to spur activity. Brent for March settlement was up 24 cents at $54.40 a barrel. The contract had slumped $3.75 a barrel to settle at $54.16 a barrel during the previous trading session.

Decline in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

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In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.885, compared with its close of 61.7525 during the previous trading session.

A weak rupee could extend benefit to oil exporters to that extent.

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First Published: Feb 05 2015 | 10:52 AM IST

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