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Upstream oil companies decline along with crude oil prices

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Capital Market
Last Updated : Jul 28 2015 | 9:47 AM IST

Shares of four upstream oil companies shed by 0.2% to 3.03% at 11:00 IST on BSE after crude oil prices declined.

Meanwhile, the S&P BSE Sensex was down 276.69 points or 0.98% at 27,835.62.

Among upstream oil companies, ONGC (down 1.98%), Oil India (down 1.73%), and Cairn India (down 3.03%) declined.

Reliance Industries (RIL) declined 0.2% to Rs 1,023 after consolidated net profit rose 4.44% to Rs 6222 crore on 25.93% decline in total income to Rs 78962 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 24 July 2015.

RIL said the decline in revenue was led by the 43.5% decline in benchmark (Brent) oil price in Q1 June 2015 over Q1 June 2014.

The company's profit before depreciation, interest and tax (PBDIT) increased by 9.8% to Rs 12095 crore in Q1 June 2015 over Q1 June 2014. Profit before tax increased by 5.5% to Rs 8152 in Q1 June 2015 over Q1 June 2014. Cash profit increased by 4.3% to Rs 9367 crore in Q1 June 2015 over Q1 June 2014.

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The company's gross refining margin (GRM) for crude refining rose to $10.40 per barrel in Q1 June 2015 from $10.1 per barrel in Q4 March 2015 and $8.70 per barrel in Q1 June 2014. RIL said that strong gasoline cracks led by robust demand growth, lower energy cost and favourable crude differentials helped boost refining margins.

In global commodities markets, Brent crude oil futures extended previous session's losses. Brent for September settlement was currently off 5 cents at $54.57 a barrel. The contract had fallen 65 cents or 1.17% to settle at $54.62 a barrel during previous trading session on Friday, 24 July 2015.

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

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First Published: Jul 27 2015 | 10:46 AM IST

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