COVID-19, oil prices pulls down RIL’s refining, chemical valuation by $7 billion
MUMBAI : Coronavirus (COVID-19) and its negative impact on the oil prices have pulled down Reliance Industries’ (RIL) refining and chemical valuation by $7 billion. This, analysts say, could impact RIL’s debt reduction plans, delaying the 20% stake sale valued at $15 billion to Saudi Aramco in its oil-to-chemicals business.
“We lower refining margin expectations for FY21/22E due to negative shock to oil demand from the coronavirus. We estimate the sharp decline in RIL’s share price is implying that the value of the refining and chemical segment has halved versus the start of the year. The valuation for refining and chemical business comes down from $77 bn to $70 bn,” said Goldman Sachs in its report dated 9 March.
Fall in crude oil prices dragged down shares of RIL as much as 13.68% on Monday, its worst percentage fall since October 2012. RIL’s scrip closed at ₹1113.15, down 12.35% on BSE.
