The Board of Directors of Reliance Industries Ltd today proposed, subject to shareholders approval, issue of bonus shares in the ratio of one share for everyshare held in the Company.
The Board also proposed interim dividend of Rs 13 per share for the financial year 2008-09. This will result in a payment of Rs. 2,219 crore inclusive of taxes of Rs. 322 crore. Both the bonus shares and dividend will accrue to the shareholders of erstwhile Reliance Petroleum Ltd which has been amalgamated recently with the Company.
RIL has completed major project in a flawless manner. We expect our track record of strong value creation to continue. The proposal for bonus and dividend continue Reliance’s tradition of rewarding shareholders on a sustained basis.
Since its listing in 1978, total returns to Reliance Industries shareholders are 25% compounded. Since the demerger, Reliance Industries has created value of Rs. 2,47,000 crore in market capitalization. Shareholders have earned 40% compounded return.
During the past four years, in the period of significantly higher capital costs, shortage of financial capital globally and constrained resources for large scale projects, Reliance has commissioned two of its largest global scale projects in the energy sector.
The commissioning of these projects has created several milestones in Reliance’s Corporate history.
Refining:
Reliance owns nearly 25% of the world’s complex refining capacity. Reliance now operates the largest refining complex at one site globally. It has enabled Jamnagar to become the refining capital of the world.
Reliance is the only company in the world to have built two large super-size complex refineries in the last decade.
Reliance is now among the largest producer of ultra clean fuels in the world.
Reliance is the only large refining company in the world today that operates its facilities in excess of 100% of rated capacity.
Upstream:
Reliance has achieved flawless execution of its KG D6 project and has achieved a ramp up to nearly 40 mmscmd of gas in less than 180 days from startup. This is a new global benchmark.
Reliance has developed the project in the shortest possible time despite very significant challenges in terms of costs, availability of rigs, technical and offshore services.
The KG D6 production ramp up is on track with 100% uptime achieved since the facility has gone on stream on April 1st, 2009. During this time we have produced a cumulative of 2.7 million barrels of oil and 5 billion cubic meters of gas and successfully started up 16 out of the 18 wells that are required to achieve maximum capacity. Reliance has among the lowest finding and development costs for any deep water oil and gas development in the world – either completed or under implementation.
At full capacity, production from these facilities will be equivalent to 40% of India’s current hydrocarbon production. The project remains unparalleled in terms of execution despite all the odds stacked against it.
The availability of gas at the government approved prices of $ 4.2 per mmbtu is wealth for millions of farmers and consumers through improved availability of fertilizers and power.
The beneficial impact of reduced subsidy and imports aggregates to several thousand crore annually. (Based on a recently concluded long term contract of gas, RIL’s gas supply at $ 4.2 per mmbtu translates into a saving of Rs. 25,000 crore annually) Reliance is now the largest exporter in India. Its two projects are making a meaningful contribution to the growth in industrial production and overall economic activity during the current fiscal year.
Reliance is now ready to invest for the future. It has a strong Balance Sheet, large cash reserves and substantial financial flexibility owing to its Treasury Stock holding which have a current value of nearly Rs. 40,000 crore. It also has operating experience and project execution skills at par with global energy majors.
Reliance has built new businesses and invested in globally competitive capacity consistently to create value for all its stakeholders.
Commenting on above, Mukesh Ambani, Chairman stated “We had committed to reward our shareholders on successful completion of our two world class projects. I am really delighted to share with you the excitement we all have in flawless execution of the upstream project which has been recognized globally as a defining accomplishment.
Our refinery project has also set new benchmarks and made Reliance the operator of the largest refinery site anywhere in the world. These are achievements that we should all have pride in and are milestones in our journey of creating value for our shareholders”.
Source:
http://www.thehindubusinessline.com/businessline/stocks/announcements/reliance_industries_ltd_081009.pdf
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The Board also proposed interim dividend of Rs 13 per share for the financial year 2008-09. This will result in a payment of Rs. 2,219 crore inclusive of taxes of Rs. 322 crore. Both the bonus shares and dividend will accrue to the shareholders of erstwhile Reliance Petroleum Ltd which has been amalgamated recently with the Company.
RIL has completed major project in a flawless manner. We expect our track record of strong value creation to continue. The proposal for bonus and dividend continue Reliance’s tradition of rewarding shareholders on a sustained basis.
Since its listing in 1978, total returns to Reliance Industries shareholders are 25% compounded. Since the demerger, Reliance Industries has created value of Rs. 2,47,000 crore in market capitalization. Shareholders have earned 40% compounded return.
During the past four years, in the period of significantly higher capital costs, shortage of financial capital globally and constrained resources for large scale projects, Reliance has commissioned two of its largest global scale projects in the energy sector.
The commissioning of these projects has created several milestones in Reliance’s Corporate history.
Refining:
Reliance owns nearly 25% of the world’s complex refining capacity. Reliance now operates the largest refining complex at one site globally. It has enabled Jamnagar to become the refining capital of the world.
Reliance is the only company in the world to have built two large super-size complex refineries in the last decade.
Reliance is now among the largest producer of ultra clean fuels in the world.
Reliance is the only large refining company in the world today that operates its facilities in excess of 100% of rated capacity.
Upstream:
Reliance has achieved flawless execution of its KG D6 project and has achieved a ramp up to nearly 40 mmscmd of gas in less than 180 days from startup. This is a new global benchmark.
Reliance has developed the project in the shortest possible time despite very significant challenges in terms of costs, availability of rigs, technical and offshore services.
The KG D6 production ramp up is on track with 100% uptime achieved since the facility has gone on stream on April 1st, 2009. During this time we have produced a cumulative of 2.7 million barrels of oil and 5 billion cubic meters of gas and successfully started up 16 out of the 18 wells that are required to achieve maximum capacity. Reliance has among the lowest finding and development costs for any deep water oil and gas development in the world – either completed or under implementation.
At full capacity, production from these facilities will be equivalent to 40% of India’s current hydrocarbon production. The project remains unparalleled in terms of execution despite all the odds stacked against it.
The availability of gas at the government approved prices of $ 4.2 per mmbtu is wealth for millions of farmers and consumers through improved availability of fertilizers and power.
The beneficial impact of reduced subsidy and imports aggregates to several thousand crore annually. (Based on a recently concluded long term contract of gas, RIL’s gas supply at $ 4.2 per mmbtu translates into a saving of Rs. 25,000 crore annually) Reliance is now the largest exporter in India. Its two projects are making a meaningful contribution to the growth in industrial production and overall economic activity during the current fiscal year.
Reliance is now ready to invest for the future. It has a strong Balance Sheet, large cash reserves and substantial financial flexibility owing to its Treasury Stock holding which have a current value of nearly Rs. 40,000 crore. It also has operating experience and project execution skills at par with global energy majors.
Reliance has built new businesses and invested in globally competitive capacity consistently to create value for all its stakeholders.
Commenting on above, Mukesh Ambani, Chairman stated “We had committed to reward our shareholders on successful completion of our two world class projects. I am really delighted to share with you the excitement we all have in flawless execution of the upstream project which has been recognized globally as a defining accomplishment.
Our refinery project has also set new benchmarks and made Reliance the operator of the largest refinery site anywhere in the world. These are achievements that we should all have pride in and are milestones in our journey of creating value for our shareholders”.
Source:
http://www.thehindubusinessline.com/businessline/stocks/announcements/reliance_industries_ltd_081009.pdf
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