Reliance Industries rose 1.7% to Rs 797 at 13:29 IST on BSE on reports the oil ministry has agreed to conditionally approve the capital expenditure plans of the company and its partners to make fresh investments in Krishna-Godavari basin.
Meanwhile, the BSE Sensex was up 52.63 points or 0.3% to 17,654.41.
On BSE, 3.52 lakh shares were traded in the counter as against average daily volume of 4.12 lakh shares in the past one quarter.
The stock hit a high of Rs 797.90 and a low of Rs 783 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 had outperformed the market over the past one month till 7 August 2012, surging 6.73% compared with the Sensex's 0.46% rise. The scrip had also outperformed the market in past one quarter, jumping 9.56% as against Sensex's 4.07% rise.
The company has equity capital of Rs 3236.52 crore. Face value per share is Rs 10.
According to reports, the oil ministry has agreed to conditionally approve the capital expenditure plans of Reliance Industries (RIL) and its partners to make fresh investments for increasing production of natural gas at D6 oil and gas block in the eastern offshore Krishna-Godavari basin. Oil Minister Jaipal Reddy on Tuesday, 7 August 2012, said the D6 block is producing only 29 million standard cubic meters a day of gas compared with an expected 80 mmscmd in the current financial year through 31 March 2013.
According to production-sharing contracts for the oil and gas sector in India, the explorer invests in developing oil and gas blocks and later recovers the money through selling hydrocarbons. The investments made by the explorer need to be cleared by the government. 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 2012, down 33% from a year earlier due to reservoir complexity and natural decline. While RIL holds a 60% stake in the block, UK's BP PLC owns 30% and Canada's Niko Resources the remaining 10%.
RIL's net profit fell 21% to Rs 4473 crore on 13.4% growth in net sales to Rs 91875 crore in Q1 June 2012 over Q1 June 2011.
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 infotel. RIL is the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
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