Reliance advantage slow growth such as declining refining margins

April 25, 2011, 6: 43 pm EDT by Rakteem Katakey

(Updates closing stock in the sixth paragraph).

April 25 (Bloomberg) - Reliance Industries Ltd., most big company India by market value, can see profit growth as earnings of drop of crude oil from the processing of a maximum of two years, investors said.The shares fell most in five weeks as missed earnings estimates after a fall of production of natural gas. Increase of 14% of the company in the net result in the three months ended March 31 to 53.8 billion rupees ($1.2 billion) has been less than six quarters. The average estimate of 18 analysts in a Bloomberg survey were NRS 54.3 billion.Refining of Reliance, controlled by billionaire Mukesh Ambani, margins increased 23 percent in the quarter meter and has contributed to a decline of 8% in the income of exploration. That may change as refineries in the Japan and China exit ramp, adding to supply and reducing the profitability of the crude turn into fuels. Reliance runs the largest refining complex world and won 87 percent of its revenues for the year last to treat oil. "" Profit will be flat from a quarter to a quarter as refining margins may be close to a peak and gas production increases, "said Peter Varga, who helps manage about $ 300 million of new capital of enterprise market in Vienna at Erste Sparinvest KAG and has dependencies. "As capacity will come live in Asia, margins slowly fall."Reliance sold 30% in the oil and gas areas 23-BP Plc to increase production of its largest gas area and increase revenues.Reliance has decreased by 4.7% this year in Mumbai, compared with a decline of 4.5% in the benchmark sensitive index. Shares fell by 3% to 1,009.35 rupees at the close to Mumbai. Reliance, with a market value of about $ 74 billion, has the balancing high the benchmark complex refiners MarginsMargins indexSingapore in the treatment of Singapore that Dubai crude reached a record $ 7.47 per barrel on March 4the highest level since December 2. They fell to US $3.60 per barrel, April 20, the lowest since March 9, according to data compiled by Bloomberg.Crude oil in New York trade has gained 23 percent this year. The June contract was for $112.70 at 10: 06 pm, in London. It has increased as much as 78 cents to $113.07 per barrel, the highest intraday price since April 11, when the futures reached $113.46, the most since September s 2008.Reliance before taxes profit from refining grew by 26% to 25.1 billion rupees in the quarter, the statement of income. Two adjacent refineries of company in the Western State of Gujarat has obtained $9.20 on each barrel of crude oil into fuels compared with $7.50 gun the previous year.Diesel cracks probably "see us margins of moderates in Asia by achieved peaks of the first quarter of refining of diesel cracks begin to relieve in the region," said Vivek Mathur, an analyst with the petroleum market based in Boston to the Energy Security Analysis Inc. "the Japan refineries are also return after the earthquake and we see one." "excess fuel.The refiners to the Japan, including Cosmo Oil Co., are operating in production after the largest earthquake in the country left approximately 29 per cent of the capacity of treatment.Lower estimated gas production is also weighing down on the growth of the profits of dependency. Profit before taxes for the sale of crude oil and gas decreased by 8 per cent to 15.7 billion rupees in the quarter, Reliance said in a statement by e-mail. "" The cost of energy makes this gas as gold in the ground "said Chokkalingam g., investment officer head Centrum wealth managers Ltd. in Mumbai. "Even if there is a moderation in refining margins, to a certain moment of time exit gas will again increase and profit growth will resume."ReservoirsReliance complex product 161.9 billion feet cubic gas in block KG - D6 in the three months ended March 31 compared with 190,1 billion cubic feet a year earlier, according to a statement on its Web site. "" Based on data from production of more than two years, the tanks seem to be more complex than expected earlier, "Reliance said in the presentation. The company did not say when the output will increase.The Government is not satisfied with the explanation of the use of the decline, S.K. Srivastava, Director General of the India oil regulator, said reporters in New Delhi April 21, without developing.BP agreed in February to pay $ 7.2 billion for the participation of 30 per cent by 23 blocks in India of confidence and form a company on the gas market.Reliance was the stock of debt of 674 billion rupees to 31 March and cash and equivalents of 423,9 billion rupees, the company said in its statement of 21 April revenues.

-Editors in Chief: John Chacko, Ryan Woo

To contact the reporter on this story: Rakteem Katakey in New Delhi to rkatakey@bloomberg.net

To contact the editor responsible for this story: Amit Prakash to aprakash1@bloomberg.net

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