23 July 2009;dailypioneer.com:Mumbai: Top energy firm, Reliance Industries Ltd, is expected to post a dip in quarterly profit on tighter refining margins, while leading oil producer ONGC is forecast to say profit fell on lower crude prices. Reliance, the country's largest listed company with a market value of $60 billion, began pumping gas from its vast, newly developed field off India's east coast in April, which should help it offset shrinking refining margins in coming quarters. Reliance, controlled by billionaire tycoon Mukesh Ambani, was producing 28 million metric cubic metres a day (mmscmd) of gas on June 25 from the Krishna-Godavari basin and aims to reach peak output of 80 mmscmd by December, which would double the country's natural gas output. The company struck a deal in February to absorb subsidiary Reliance Petroleum, giving it full control over the world's largest refinery operation, in the western state of Gujarat. "The increase in oil and gas production, and ramp up of production at the new refinery, should help Reliance post higher profit numbers in quarters to come," said Deepak Pareek, a research analyst at Angel Broking. Reliance Industries has been locked in a legal dispute over terms of a gas supply agreement reached in a 2005 family settlement with Reliance Natural Resources, controlled by Mukesh Ambani's younger brother, Anil Ambani. Analysts said Reliance's gross refining margins (GRMs), a key measure of profitability, would have fallen to $7-$9.5 per barrel in the June quarter from $15.7 a year earlier, tracking the decline in Asia's benchmark Dubai crack margin . Regional refining margins declined mainly on anticipated lower demand for fuel products, with little sign of strong recovery given the fragile world economy, analysts said. In a report on Thursday, Fitch said it expects Asian refiners to face cashflow pressures as new plants are commissioned in 2009 and 2010 at a time when regional demand for refined products is likely to fall despite economic growth in China and India.
Petrolstop is a division of Car Fuel Info Solutions, LLC Petrolstop.com is a registered trademark owned by Car Fuel info Solutions, LLC Website Design by Onazari Technical Solutions
