RIL net nearly doubles to USD 2 bn in a year

Mumbai, Apr 27: Reliance Industries' net has gone up by 9.2 per cent to Rs 2,502 crore for the fourth quarter ended March 31, 2006 as compared to Rs 2,292 crore in the same period the previous fiscal, even as its yearly net profit has almost doubled to USD two billion.

Also, the company's Q4 net rise is above the market expectation of Rs 2,154 crore, RIL today announced.

Its net for financial year 2005-06 is up by 20 per cent to over Rs 9,069 crore.

The company has also declared a cent per cent dividend at the payout of Rs 1,394 crore, so far the highest in private sector.

The company's turnover is up 22 per cent to Rs 89,214 crore for FY-06.

On the results, RIL Chairman and Managing Director Mukesh Ambani said it was a ''very good year'' in an extremely challenging environment as the company took several strategic steps to enhance and distribute wealth to the shareholders.

''What is even more gratifying is the growth in our profits from a little over USD one billion to over USD two billion in a span of just 24 months,'' Mr Ambani observed.

He further informed that the group has started investing in each of its businesses to achieve substantial growth in earnings in the future and create further value for millions of shareholders.

The RIL group, which posted an increase of 22 per cent in its turnover at Rs 89,124 crore, has recorded an operating profit of Rs 14,982 crore, up by five per cent from the previous year. It has also registered a cash profit of Rs 13,174 crore against Rs 12,087 crore for the previous fiscal, an increase of nine per cent. Earnings per share (EPS) for the year is Rs 65.1.

The company's production of oil and gas and petrochemicals, including toll conversion, was 13.5 million tonnes during the year, against 12.7 million tonnes the previous year, an increase of six per cent.

Exports of manufactured products were worth Rs 32,691 crore against Rs 25,532 crore for FY-05, an increase of 28 per cent.

Also, the company's scheme of arrangement to demerge certain undertakings to four resulting companies was approved by the Bombay High Court on December nine last year, effective from December 21, 2005.

The consolidated net profit of the company after consolidating its subsidiaries and associates is Rs 9,398 crore.

In a statement, RIL said the carrying value of the net assets demerged under the scheme of demerger is Rs 19,006 crore as per US GAAP.

Reviewing its oil and gas business, RIL statement said during the year, the company signed a co-operation agreement with Ecopetrol of Columbia for farm-in opportunities there.

It is also working with leading international technology and service providers for E&P projects, covering all activities like seismic studies, processing and interpretation of data and drilling.

To accelerate the pace of exploration, RIL has already contracted seven rigs for deepwater and shallow water drilling.

RIL is the largest exploration acreage holder among the private sector companies in India with 34 domestic exploration blocks, covering an area of about 3,31,000 sq km.

This is in addition to its interest in one exploration block each in Yemen and Oman. The company also has five coal bed methane blocks covering an area of about 4,000 sq km.

UNI