Reliance Industries rose 0.19% to Rs 990.95 at 9:17 IST on BSE after the company issued clarification with regard to news reports of government's penalty on the company.
The clarification was issued after market hours on Wednesday, 16 July 2014.
Meanwhile, the S&P BSE Sensex was down 2.44 points or 0.01% at 25,547.28.
On BSE, so far 5,863 shares were traded in the counter as against average daily volume of 3.87 lakh shares in the past two weeks.
The stock hit a high of Rs 991.80 and a low of Rs 988.10 so far during the day.
Reliance Industries (RIL) after trading hours on Wednesday, 16 July 2014, issued a clarification to recent news reports that said that the government has imposed an additional penalty of $579 million on RIL for the year 2013-14 for failing to meet the gas production target for its flagship KG-D6 block. RIL said that media reports have been apparently misquoting the cost recovery disallowance as levy of fine/penalty on RIL, while the two are entirely different. RIL said that the government had in 2012 wrongly sought to disallow cost recovery of investments made by the contractor (RIL 60%; BP 30%; NIKO 10%) in the block KG-DWN-98/3 for the period FY 2011 and FY 2012. RIL said that the potential impact to the contractor is the additional payment of profit petroleum to the Government of India (GoI), when and if the disallowed cost is added to the profit petroleum. The GoI's share of profit petroleum is currently pegged at 10% based on a formula prescribed in the Production Sharing Contract (PSC). RIL said that the company and its partners in the block believe that the purported rationale of GoI in proportionately disallowing the cost in the ratio of actual production to the estimated production from D1-D3 fields in the KG D6 block is not as per the PSC. RIL said that the company and its partners in the block had commenced arbitration process under the terms of the PSC over the wrongful disallowance of cost recovery by the GoI in November 2011.
RIL's net profit rose 0.8% to Rs 5631 crore on 13.1% growth in net sales to Rs 95193 crore in Q4 March 2014 over Q4 March 2013.
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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