RIL declines on reports petroleum ministry imposes $250 million penalty

Reliance Industries lost 1.43% to Rs 1,020.10 at 13:12 IST on BSE on reports the petroleum ministry has slapped a penalty of nearly $250 million on the company to make good the government's loss of "profit petroleum" from the KG D-6 block.

Meanwhile, the S&P BSE Sensex was down 137.66 points or 0.49% at 28,014.74.

On BSE, so far 1.21 lakh shares were traded in the counter as against average daily volume of 2.54 lakh shares in the past one quarter. The stock hit a high of Rs 1,044 and a low of Rs 1,017.25 so far during the day. The stock had hit a 52-week low of Rs 819 on 24 August 2015. The stock had hit a 52-week high of Rs 1,089.50 on 15 January 2016. The stock had outperformed the market over the past one month till 12 August 2016, gaining 3.28% compared with 1.24% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, advancing 4.43% as against Sensex's 9.16% rise.

The large-cap company has equity capital of Rs 3242.95 crore. Face value per share is Rs 10.

Reports suggested that the petroleum ministry has slapped a penalty of nearly $250 million on Reliance Industries (RIL) to make good the government's loss of "profit petroleum" owing to the firm's inability to meet the natural gas production targets from the Krishna-Godavari (KG) D6 block. The KG-D6 fields started production in April 2009. The current production of around 8 million metric standard cubic metres per day (mmscmd) is a far cry from the peak of over 69 mmscmd achieved in early 2010, reports suggested. The block was envisaged to produce more than 80 mmscmd of the fuel, reports indicated. Profit petroleum is the main source of revenue for the government from a hydrocarbon block.

On consolidated basis, RIL's net profit rose 18.1% to Rs 7113 crore on 15.2% decline in net sales to Rs 64990 crore in Q1 June 2016 over Q1 June 2015.

RIL is a diversified firm having presence in oil exploration, petrochemicals, retail and telecom sectors.

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