Monday, September 1, 2008

RIL ---- Can We Trust?

Reliance Industries gained 1.03% to Rs 2158.05 at 10:41 IST on BSE on reports it has scrapped a plan to transfer an 80% stake in a deepwater oil & gas block to four fully-owned units.
The stock hit a high of Rs 2165 and a low of Rs 2106 so far during the day. The stock had a 52-week high of Rs 3252.10 on 15 January 2008 and a 52-week low of Rs 1886 on 30 August 2007.
India’s largest private sector firm by market capitalisation and oil refiner has an equity capital of Rs 1453.71 crore. Face value per share is Rs 10.
The current price of Rs 2158.05 discounts its Q1 June 2008 annualised EPS of Rs 113.07, by a PE multiple of 19.08.
On 27 August 2008, Reliance Industries (RIL) said it plans to transfer 80% of its holding in D6 block of the Krishna Godavari basin to four unlisted subsidiaries -- Reliance KG Exploration and Development, Reliance KG D6 E&P, Reliance KG Basin and Reliance E&P KG, to enhance flexibility to raise finances. The Mukesh Ambani-run RIL currently owns a 90% interest in KG-DWN-98/3, better known as the D6 block, in the basin where 18 oil and gas discoveries have been reported till date. The remaining 10% stake vests with its Canadian partner Niko Resources. Valued at nearly $50 billion with 14 trillion cubic feet of gas reserves, this is the arguably the most valuable asset held by the company.
Meanwhile, the hearing of the Reliance Industries (RIL) – Reliance Natural Resources (RNRL) dispute over the supply of natural gas from the former's eastern offshore Krishna-Godavari gas fields is due today, 1 September 2008.
Reliance Industries’ net profit rose 13.2% to Rs 4110 crore on a 40.8% rise in sales to Rs 41579 crore in Q1 June 2008 over Q1 June 2007.
Reliance Industries manufactures petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn and polyester staple fiber. The company also owns a petroleum refinery cum petrochemicals complex in Jamnagar, India that produces a wide range of products such as gasoline, superior kerosene oil and liquified petroleum gas.

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