Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Stock Report

| More

RIL's revenue from Oil and Gas Business declines to Rs. 790 crore in Q2

Posted On: 2019-10-20 09:50:13

2Q FY20, revenue for the Oil & Gas segment decreased by 40.2% Y-o-Y to Rs. 790 crore. Segment EBIT at Rs. (306) crore as against Rs. (480) crore in the corresponding period of the previous year. The segment performance continued to be impacted by declining volume. Domestic production was lower at 11.9 BCFe, down 22 % Y-o-Y and production in US Shale operations also declined by 25% to 17.8 BCFe Y-o-Y.

RIL Oil and Gas Business - Exploration and Production - Q2 FY 2019-20

Domestic Operations

2Q FY20 revenues for domestic E&P operations stood at Rs. 447 crore reflecting a decrease by 39.3% Y-o-Y mainly due to natural decline in production in D1-D3 field of KGD6 and impact of cessation of production from MA field. Revenue declined by 8.8% on Q-o-Q basis due to lower commodity price realization and deferment of oil sales due to weather conditions in the west coast of India. The segment EBIT was Rs. 60 crore for the quarter.

KG-D6

KGD6 block produced 5.45 BCF of natural gas in 2Q FY 20, lower by 51.6% Y-o-Y and 3.7% Q-o-Q

KG-D6 Project update

R-Cluster development project remains on-track for first gas by mid-2020. Key development activities are expected to commence during 3Q FY20. These include second campaign for installation of subsea production system (SPS), XMT installation and upper completion of wells and tie in of 6 wells.

In Satellite Cluster - Top hole drilling completed for 3 out of 5 wells and Engineering & fabrication for SPS is underway. In MJ project, Engineering is ongoing for Floating Production Storage Offload (FPSO), SPS and Subsea Installation.

During the quarter, assignment of NIKO's PI to RIL & BP was approved by GoI.

Panna-Mukta and Tapti

Panna-Mukta fields produced 0.96 MMBBL of crude oil and 11.7 BCF of natural gas in 2Q FY20. There is an increase of 14.6% in oil and 4.4% in gas volumes on Q-o-Q basis. The increase in volumes is primarily due to better uptime of facilities as compared to 1Q FY20.

Panna-Mukta Production Sharing Contract (PSC) is expiring on 21st December 2019 and handover process is currently in progress.

Tapti decommissioning is in progress as per schedule with expected completion by end FY22.

CBM

During the quarter, the CBM field produced 3.03 BCF of gas as compared to 3.0 BCF during 1Q FY20. Average production during the quarter was at 0.93 MMSCMD.

Additional 67 wells will be put on production progressively from 3Q FY20 post commissioning of additional Gas Gathering Station (GGS) which is expected in 3Q FY20.

Other Updates

Petroleum Exploration License (PEL) for OALP block KG-UDWHP-2018/1 has been issued by GoI.

Oil & Gas (US Shale)

Price trend mixed with improved realization for oil but lower realizations for gas and NGLs during 2Q CY2019 (consolidated with 2Q FY20). WTI oil prices averaged higher by 9%, NGL realization dropped by 17% and HH gas prices declined by 16%. Volumes were 6% lower Q-o-Q. This resulted in revenues being lower Q-o-Q. Opex remained comparable to last quarter.

Review of US Shale Operations (3Q CY 19)

US commodity prices declined for both oil and gas during 3Q CY2019. WTI oil prices averaged lower by ~6% Q-o-Q. NGL basket price was down 13% Q-o-Q at $16.0/bbl, due to ample supplies of NGLs. HH Gas prices averaged lower by 16% Q-o-Q. Marcellus differentials (discount) to HH also increased to ($0.46)/MMBtu, deteriorating 7% Q-o-Q.

Development momentum continued at both Chevron and Ensign JVs. In Chevron JV, 8 wells were drilled in JV operated areas during the quarter. 6 new wells were also put on production, which are the 1st set of wells to be TIL'ed after a 2-year hiatus. In Ensign JV, 6 wells were drilled and 8 wells were Put on production.

Overall production was 11% higher at 19.9 bcfe. New volumes during second half of the quarter mitigated the natural decline of wells across both the JVs. Production expected to increase further during 4QCY19.

Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.1415.3 as compared to the previous close of Rs. 1396.15. The total number of shares traded during the day was 629451 in over 20580 trades.

The stock hit an intraday high of Rs. 1428 and intraday low of 1399.7. The net turnover during the day was Rs. 891730305.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Asian Oilfield Services Ltd secures Rs 640-crore seismic data acquisition work

Jubilant Industries subsidiary to recommence operations from May 15, 2020

Adani Transmission Limited receives LoI for Transmission Project in the State of Maharashtra

R Systems International Limited Board approves interim dividend of Rs. 1.50 for 2019

Prabhat Technologies launches parenteral control mobile application

Karnataka Bank launches KBL Xpress Car Loan

Aditya Vision Ltd opens 41st showroom

Hester Biosciences Ltd board to consider fund raising through issue of equity shares

Ashiana Housing Ltd announces conversion of EoI into booking for Phase 1 of 'Ashiana Aditya'

CARE A1+ rating assinged to Shree Cement's Commercial Paper

ABANS ENTERPRISES LTD announces resignation of CFO

RIL arm acquires 51.78% stake in Asteria

REC Ltd transfers stake in Rampur Sambhal Transco Limited to Powergrid

Wipro Promax Analytics Solutions recognised by Promotion Optimization Institute

Zensar participates in the 'Women in the Workplace 2019' report by McKinsey and LeanIn.Org

AU Bank announces the completion of Temasek's investment for 4.8% stake

BGR Energy Systems bags order from TANGEDCO

Acuite Ratings reaffirms A3+ rating for Dynacons' short term instruments

Premier Explosives Ltd receives license from Telangana Government

Kansai Nerolac dedicates an exclusive installation to Visakhapatnam under its 'Breathing City' initiative

TCS wins CII Industrial IP Award for Best Patents Portfolio

Metropolis Healthcare wins Patient Experience Team of the Year award

Mastek Limited sells its partial stake in Majesco to drive growth strategy

UFO Moviez Unveils New Brand Identity to Reinforce its Cinema Advertising Offering

Infosys Ltd updates on class action lawsuit

Magma Fincorp raises INR 350 Cr. from FMO - the Dutch Development Bank

Majesco Ltd to increase stake in Majesco USA to 74.6%

Smt. Usha Sangwan ceased to be nominee director of AXIS Bank Ltd

Vipin Sondhi appointed as MD & CEO of Ashok Leyland

Let us not forget our Fundamental duties in the clamour for Fundamental Rights

Biocon & Equillium Expand Exclusive Licensing Agreement for Itolizumab to Include Australia and New Zealand

IDEGO and EdgeVerve Join Hands to Drive RPA Adoption Across Latin America

Brickwork reaffirms ratings of SRG Housing Finance Limited

Sambhaav Media Ltd commences FM Radio Station at Bhaderwah (J&K) (94.3 MHz)

Embassy Group's HR Practices and Workplace Culture earns Top Rank in the Industry

Persistent Systems announces new leadership for unified Salesforce practice in Europe

Navin Fluorine International Ltd plans capex at Dahej, Gujarat

Datamatics to Strategically Divest its Stake in Cignex Datamatics Inc.

Aster DM Healthcare Ltd increases stake in Prerana Hospital Ltd to 86.99%

Kesar Enterprises Ltd accepts OTS with Allahabad Bank, UCO Bank

South African Depository Consolidates All Operations on to TCS BaNCS™ for Market Infrastructure

One of the leading Global Business Process Outsourcing Company Goes Live on Ramco

Wipro wins the '2019 SUSE Global System Integrator Partner of the Year' award

Infosys Awarded the 'Excellent Partner Award' by Mazda

Bank of Baroda allots 65,14,65,798 shares to Government of India

CreditAccess Grameen Wins the Prestigious 'Microfinance Organization of the Year' Award

INOX Leisure Limited commences operations of multiplex at Orion Mall, Gorakhpur

Wipro awarded Cloud and Infrastructure Transformation Partnership Contract by OlymPus

More than 50 percent of Enterprises look at Cloud Applications as a Foundation for Digital Transformation - Infosys Research

HT Media Ltd's Long term rating downgraded to 'CRISIL AA / Stable'







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019