Reliance Industries rose 1.49% to Rs 867.25 at 10:16 IST on BSE on reports the Cabinet Committee on Economic Affairs has approved a hike in the price of natural gas from the company's KG-D6 basin from April 2014.
Meanwhile, the BSE Sensex was up 85.76 points, or 0.41%, to 20,794.38.
On BSE, so far 1.20 lakh shares were traded in the counter, compared with an average volume of 3.28 lakh shares in the past one quarter.
The stock hit a high of Rs 878 and a low of Rs 864.70 so far during the day. The stock hit a 52-week high of Rs 954.80 on 21 January 2013. The stock hit a 52-week low of Rs 765 on 28 March 2013.
The stock had underperformed the market over the past one month till 19 December 2013, sliding 2.53% compared with the Sensex's 0.87% fall. The scrip had also underperformed the market in past one quarter, falling 4.10% as against Sensex's 0.30% rise.
The large-cap company has an equity capital of Rs 3231.25 crore. Face value per share is Rs 10.
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According to media reports, the Cabinet Committee on Economic Affairs (CCEA) on Thursday, 19 December 2013, approved a hike in the price of natural gas from Reliance Industries' (RIL) operated KG-D6 basin from April 2014.
Earlier the parliamentary committee on finance had questioned the government's decision to allow RIL realise higher gas price from the KG basin as the company had failed to meet the stipulated supply of gas. The matter has gone for arbitration and it was suggested that until the arbitration is resolved the company should not be allowed to realise higher gas price.
However, according to the proposal approved by the CCEA, RIL will have to submit a bank guarantee, as decided by the ministry of petroleum, to realise the newly notified gas prices in the country. The bank guarantee will be encashed if it is proved that RIL hoarded gas or deliberately suppressed production at the Dhirubhai-1 and 3 (D1&D3) main gas fields in its eastern offshore KG-D6 block.
The rate in April 2014, when the new pricing is to be implemented, will be about $8.4 per million British thermal unit (mBtu) as against the current $4.2 mBtu. The proposed bank guarantee will cover the difference between the current gas price and the new rate.
Media reports suggest that the D6 block is currently producing much lower than the supply commitment of about 80 million metric standard cubic metres per day (mmscmd). According to initial estimates, KG-D6 output was to reach 80 mmscmd by April 2012. Production from D-1, D-3 fields in the block started in April 2009. After hitting a peak of 60-61 mmscmd in early 2010, the output started to drop. At present, the output from D-1, D-3 fields stands at 9.5 mmscmd. Total output from D6 block that includes MA fields is around 11-12 mmscmd, reports added.
RIL's net profit rose 1.5% to Rs 5490 crore on 14.2% growth in turnover to a record Rs 106523 crore in Q2 September 2013 over Q2 September 2012.
RIL's gross refining margin (GRM) declined to $7.7 per barrel in Q2 September 2013, from $8.4 a barrel in Q1 June 2013 and $9.5 a barrel in Q2 September 2012. RIL said that the company's refining business performance during the quarter was positively impacted by increased crude throughput, stable middle distillate and naphtha cracks, and favourable exchange rate movement. This was partly offset by weak gasoline and solid products (pet-coke/sulphur) cracks, widening Brent-Dubai differential and lower domestic sales on weak demand.
RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband services.
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