Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Reliance Industries Ltd Overweight
RELI.BO, RIL IN
1QFY12 - in line; strong refining quarter as anticipated
RIL 1QFY12 earnings were in line with expectations at Rs56.6bn (JPMe
Rs56.3bn). Robust GRMS (US$10.3/bbl), combined with high throughput
(110% utilization), drove a very strong refining quarter and helped offset
the impact of volume declines in E&P, margin pressures in petrochems.
1QFY12 – good operational delivery in refining: Strong diesel
spreads, light-heavy differentials, coupled with high refining throughput
helped RIL maximize Refining EBIT in 1QFY12 (Rs32bn, +28%q/q).
RIL believes refining will continue to be a strong contributor in the
medium term with sustaining high light-heavy differentials and robust
middle-distillate spreads. With no shutdowns envisaged in 2Q, RIL
expects to continue running its refineries at high throughput levels.
Weak petchem quarter, 2Q off to a better start: High price volatility
and weak demand in the domestic market led to a poor petrochem
quarter for RIL, with EBIT down 16% q/q. However, RIL managed to
contain petchem inventory build, despite downstream processors
destocking. RIL emphasized domestic demand has revived in July and
despite the decline in cotton prices, cotton-polyester differential
remained high and polyester margins continue to be robust.
E&P uncertainty continues: RIL continues to engage with the
government on D6 - regulatory scrutiny has impacted decision-making
and plans on further drilling, workovers had not yet been
finalized/approved. Shale JVs are ramping up production (6.1mmscmd),
RIL expects Shale to contribute materially to earnings in a few years.
Petchem project timelines to firm up this quarter: RIL expects
polyester expansion projects (ex- PX, MEG) to be largely completed by
Dec-13. RIL is negotiating licensing terms for the major units and
expects to firm up project timelines this quarter.
We reiterate OW, PT Rs1200.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Reliance Industries Ltd Overweight
RELI.BO, RIL IN
1QFY12 - in line; strong refining quarter as anticipated
RIL 1QFY12 earnings were in line with expectations at Rs56.6bn (JPMe
Rs56.3bn). Robust GRMS (US$10.3/bbl), combined with high throughput
(110% utilization), drove a very strong refining quarter and helped offset
the impact of volume declines in E&P, margin pressures in petrochems.
1QFY12 – good operational delivery in refining: Strong diesel
spreads, light-heavy differentials, coupled with high refining throughput
helped RIL maximize Refining EBIT in 1QFY12 (Rs32bn, +28%q/q).
RIL believes refining will continue to be a strong contributor in the
medium term with sustaining high light-heavy differentials and robust
middle-distillate spreads. With no shutdowns envisaged in 2Q, RIL
expects to continue running its refineries at high throughput levels.
Weak petchem quarter, 2Q off to a better start: High price volatility
and weak demand in the domestic market led to a poor petrochem
quarter for RIL, with EBIT down 16% q/q. However, RIL managed to
contain petchem inventory build, despite downstream processors
destocking. RIL emphasized domestic demand has revived in July and
despite the decline in cotton prices, cotton-polyester differential
remained high and polyester margins continue to be robust.
E&P uncertainty continues: RIL continues to engage with the
government on D6 - regulatory scrutiny has impacted decision-making
and plans on further drilling, workovers had not yet been
finalized/approved. Shale JVs are ramping up production (6.1mmscmd),
RIL expects Shale to contribute materially to earnings in a few years.
Petchem project timelines to firm up this quarter: RIL expects
polyester expansion projects (ex- PX, MEG) to be largely completed by
Dec-13. RIL is negotiating licensing terms for the major units and
expects to firm up project timelines this quarter.
We reiterate OW, PT Rs1200.
No comments:
Post a Comment