FE Editorial : Refining profits
After having been a laggard for close to three years, it has outperformed the Sensex in the last six months with a return of 25.7% to the benchmark’s 16.7%. Some of this is based on expectations that the price of gas may be upped to $8 per unit—as suggested by the Rangarajan committee—post 2014 from the $4.2 per mmbtu that RIL now earns. The price hike is expected to be accompanies by an increase in production at the KG D6 basin, now at sub-30 mmscmd levels and way below the peak projected levels of 80 mmscmd. In the December quarter, revenues from the E&P division came of 32% yoy and the Street is eager to see RIL restart exploration activity after a halt of nearly two years; RIL is understood to
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