Soaring gas prices will boost profits for India’s biggest company
Reliance Industries expects the global natural gas crisis and rising gas prices to continue to benefit the Indian oil-to-telecoms conglomerate with more profits in the coming months after higher oil production and gas and price realization helped it generate record quarterly profits.
Reliance Industries, India’s biggest company run by Asia’s richest person, Mukesh Ambani, expects India to raise its offshore gas sales cap by 60% in April to $10 per million of British thermal units (MMBtu), the group’s senior vice president for exploration and production, Sanjay Roy, said during the presentation of the results for the third quarter, as carried by Bloomberg.
Rising gas prices and increased gas production from the Krishna-Godavari (KG) oil and gas fields in the Bay of Bengal led to an increase in the conglomerate’s core revenues and profits during the quarter ended the 31st of December.
According to Roy, Reliance Industries and BP, its partner in the KG fields, expect to increase gas production to 30 million cubic meters per day next year, from 18 million cubic meters per day currently.
In its quarterly earnings report, Reliance Industries noted on Friday that revenue from its Oil & Gas segment increased several-fold in the quarter to December 2021, driven by a ramp-up in gas production from Block KG D6. Revenue growth was also supported by higher gas prices in the KG D6 and CBM blocks, the conglomerate said.
“The recovery in global oil and energy markets supported strong fuel margins and helped our O2C business generate strong earnings. Our Oil & Gas segment delivered strong EBITDA growth with growth volumes and improved fulfillment,” Mukesh Ambani, Chairman and CEO, said in a statement.
Ambani also noted recent commitments by Reliance Industries to invest billions of US dollars in renewable energy in India. The conglomerate plans to invest as much as $76 billion in green energy projects in India over the next 15 years, he said earlier this month.
By Tsvetana Paraskova for Oilprice.com
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