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RIL in demand on KG-D6 investment plan

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Capital Market
Last Updated : Aug 07 2013 | 9:30 AM IST

Reliance Industries rose 0.80% at Rs 791.60 at 14:45 IST on BSE, extending Monday's gains after Oil Minister said the government may approve the company's new investment plan for the D6 block in the eastern offshore Krishna-Godavari basin.

Meanwhile, the BSE Sensex was up 223.53 points, or 1.28%, to 17,636.49.

On BSE, 6.80 lakh shares were traded in the counter as against an average daily volume of 4.08 lakh shares in the past one quarter.

The stock hit a high of Rs 795.70 and a low of Rs 778.15 so far during the day. The stock had hit a 52-week high of Rs 902 on 4 November 2011. The stock had hit a 52-week low of Rs 671 on 8 May 2012.

The stock is up 6.55% in two sessions from Rs 742.90 on Friday, 3 August 2012. The stock had outperformed the market over the past one month until 6 August 2012, rising 6.95% compared with the Sensex's 0.62% fall. The scrip had also outperformed the market in past one quarter, gaining 8.10% as against 3.46% rise in the Sensex.

India's largest private sector bank by market capitalisation has an equity capital of Rs 3236.52 crore. Face value per share is Rs 10.

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Oil Minister Jaipal Reddy today, 7 August 2012, said the government may approve Reliance Industries' (RIL) new investment plan for the D6 block in the eastern offshore Krishna-Godavari basin as the country continues to face an acute shortage of natural gas. He said the D6 block is producing only 29 million standard cubic meters a day of gas compared with an expected 80 million metric standard cubic meter per day (mmscmd) in the current financial year through 31 March 2013.

RIL and its partners are struggling to raise production from their D6 block, India's largest gas find so far. The field produced 104.40 billion cubic feet of gas during April-June, down 33% from a year earlier due to reservoir complexity and natural decline. While Reliance holds a 60% stake in the block, the UK's BP PLC owns 30% and Canada's Niko Resources the remaining 10%.

Shares of RIL jumped 5.71% to Rs 785.30 on Monday, 6 August 2012, on reports benchmark Singapore gross refining margins have strengthened from the 2nd week of July 2012 to average at $8 a barrel from $6.7 a barrel in the quarter ended June 2012.

RIL bought back 3.66 crore shares for about of Rs 2617.57 crore till 24 July 2012 under its ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. RIL chairman Mukesh Ambani said at the company's Annual General Meeting in June 2012 that the company's buyback program represents a highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future.

RIL's net profit fell 21% to Rs 4473 crore on 13.4% increase in turnover to Rs 94926 crore in Q1 June 2012 over Q1 June 2011. The company reported a gross refining margin (GRM) of $7.60 per billion barrels (bbl) in the quarter ended 30 June 2012, compared with $7.60 in the quarter ended March 2012 and $10.30 in the quarter ended 30 June 2011.

RIL's outstanding debt as on 30 June 2012 was Rs 73,213 crore compared to Rs 68259 crore as on 31 March 2012. The increase in debt in rupee terms is mainly on account of change in exchange rates. Net gearing as on 30 June 2012 was 1.3% as compared to nil as on 31 March 2012. RIL had cash and cash equivalents of Rs 70732 crore. These are primarily invested in fixed deposits, certificate of deposits with banks, mutual funds and Government securities / bonds.

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First Published: Aug 07 2012 | 2:50 PM IST

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