Reliance posts 33.42% hike in Q2 net profits
Reliance Industries Limited (RIL) reported its financial performance for the quarter ended 30th June, 2010.
The Hon'ble Supreme Court of India delivered its judgment in the RNRL - RIL legal dispute. The judgment recognized the dominant role of the provisions of the Production Sharing Contract and upheld the policies formulated by the Government under which it has the authority to regulate the production and distribution of natural gas.
The judgment defined the extent of marketing freedom that RIL enjoys in the area of sale of natural gas produced. In view of the findings of the judgment, RIL can sell gas only at the price approved by the Government and only to the entities that have been allocated gas under the Gas Utilization Policy. RIL has no ability to deviate from price, quantity and tenure as determined under Government's policies, or to discriminate amongst various consumers.
RIL and Reliance ADA Group companies approved and signed an Agreement canceling all existing non-compete arrangements entered into between the two groups in January 2006 pursuant to the scheme of reorganization of the Reliance Group and entered into a new simpler, Non Compete Agreement with respect to only Gas Based Power Generation.
RIL and RNRL signed a Gas Supply Master Agreement in compliance with the Gas Utilization Policy and EGOM decisions.
RIL holds 95% of the equity in Infotel Broadband Services Private Limited, which has emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA) Spectrum conducted by the DoT.
RIL through its subsidiary, Reliance Marcellus LLC, has entered into a joint venture with United States based Atlas Energy, Inc., of Pittsburgh, Pennsylvania under which Reliance acquired 40% interest in Atlas's core Marcellus Shale acreage position.
RIL through its subsidiary, Reliance Eagleford Upstream Holding LP, has entered into a joint venture with United States based Pioneer Natural Resources Company, of Irving, Texas under which Reliance acquired 45% interest in Pioneer's core Eagle Ford Shale acreage position.
RIL and SIBUR, Russia's leading petrochemical company, signed a Memorandum of Understanding (MoU) to set up a joint venture (JV) in India. This new joint venture will produce butyl rubber at Reliance's integrated petrochemical site in Jamnagar, India. According to the MoU, SIBUR will provide proprietary technology for butyl rubber polymerization and its finishing, while RIL will supply monomers and provide the JV with world class infrastructure and utilities.
Reliance through its subsidiary, has invested in Deccan 360, India's new delivery and distribution network, an initiative which will provide a remarkable boost in transforming the logistics spectrum in India. The investment will help Deccan 360 to increase air and surface network coverage across the country.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said:“We had yet another record quarter due to high operating rates and improving margins across all our businesses. Reliance embarked on two major initiatives to create incremental value. We entered into joint ventures in shale gas to internationalize and diversify our upstream portfolio. Reliance has also committed itself to participate in the high growth and exciting area of broadband wireless. Both these initiatives are in line with the strategy to identify and invest in new, value creating businesses.”