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:

GAIL hands over seven tippers and 142 tri-cycles to Chandigarh Municipal Corporation

ICRA AA (Stable) rating assigned to proposed NCD issue of Godrej Industries Ltd

OIL commences 2D Vibroseis Seismic Survey operations in its OALP-I Block (RJ-ONHP-2017/9)

Registration granted for Roto Pumps Ltd's product

GAIL rated as the Top Gas - Transmission Company

G E Shipping contracts to sell its Suezmax Crude Carrier 'Jag Lakshita'

Steel Strips Infrastructures Ltd board approves disposal of SAB Mall, Noida

Essel Group to further divest its stake in ZEEL

IHCL and Les Roches Choose 'Next General Manager of India'

Airtel partners with CuriosityStream to bring award-winning factual entertainment to Indian customers

Titan ties up with Bengaluru By Design for their second run

TCS iON Reimagines University Education with a Unique Phygital Learning Program

Philippines Business Bank selects Intellect Digital Core, IDC 19.1, to power its Digital Transformation

Infosys Receives Five Awards at the DevOps Industry Awards 2019

NMDC Ltd revises Prices of Iron Ore w.e.f. 14-11-2019

RBI imposes monetary penalty of Rs. 1.75 crore on Indian Bank

Kalpataru Power Transmission Ltd completes disinvestment of Kalpataru Satpura Transco Private Limited

Parag Milk Foods announces launch of Go Cheese Blend for out of home consumption market

Ugar Sugar Works commences sugar crushing for season 2019-20

SpiceJet and Gulf Air sign MoU to explore greater cooperation

Mr. Abhishek Gami acquires controlling stake in Rapicut Carbides Limited

Jagran Prakashan Ltd updates on CP rating

Havells introduces ST^Dx Switchgear in Tamil Nadu

TCS Collaborates with Qualcomm to Launch New Innovation Hub to Develop Next-Gen AI Solutions with 5G

IntrCity by RailYatri, ICICI Lombard & Marsh join hands to provide insurance cover worth 5 Lacs for IntrCity SmartBus Travelers

Maruti Suzuki invites startups to participate in third cohort of MAIL (Mobility & Automobile Innovation Lab) program

Blue Star launches new room air conditioners with in-built air purifiers that improve the quality of life

Subros Limited formally inaugurates its 9th state-of-the-art manufacturing plant

Open Offer for Accelya Solutions India Ltd at Rs. 944.19

Ullico Casualty Group Selects Majesco P&C Core Suite and Majesco Enterprise Data Warehouse on Majesco CloudInsurer® to Underpin Digital Transformation and Growth Strategy

Shree Cement Ltd board to approve QIP allotment, discount, issue price on Nov 22, 2019

Siemens Ltd reappoints Deepak Parekh and Yezdi H Malegam as independent directors

Reliance Capital's stake in Reliance General Insurance Company Ltd invoked by IDBI Trustee

Brickwork Ratings reaffirms commercial paper issue rating of JSW Energy Ltd

Jio keeps consumers at the center of digital revolution in India

CARE reaffirms long term rating of Loyal Textile Mills Ltd

University of Oulu, Wipro Sign MoU to Collaborate on 5G/6G Technologies

NBCC (India) Ltd bags project consultancy contract

Siemens Ltd Board recommends Dividend of Rs. 7 for 2018-19

Dilip Buildcon Ltd arm receives provisional completion certificate for project in NH-361

Siemens Limited announces Q4 FY 2019 results

CarDekho delivers 92% growth in H1 2019-20

Bajaj Finserv offers lucrative deals on Vivo smartphones

South Indian Bank Ltd revises MCLR from Nov 20, 2019

Tata Chemicals tops 6th edition of ET Edge - Futurescape Responsible Business Rankings 2019 unveiled at Economic Times - SDG Impact Summit

RBI imposes penalty of Rs. 2.50 crores on Bank of Baroda

Alkyl Amines Chemicals Limited has sold its stake in Diamines and Chemicals Ltd

Appirio, MuleSoft Partner to Provide Digital Transformation Solutions

TCS and Govt of Karnataka Rural IT Quiz: Government Excellence School, Dewas, Madhya Pradesh wins National Finals

Infosys Foundation India International Challenge 2019 to host 250 players from 13 countries







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

disclaimer copyright © 2005 - 2019