Will oil companies’ September quarter numbers fuel investor confidence?
Shares of Reliance Industries Ltd (RIL) have gained nearly 20% since its annual general meeting on 12 August, when chairman and managing director Mukesh Ambani said the company will have zero net debt by 31 March 2021.
In that backdrop, when RIL announces its September quarter results on Friday, “any signs of decline in capex intensity should increase confidence in our view”, said analysts from HSBC Securities and Capital Markets (India) Pvt. Ltd.
That apart, the sequential recovery in refining margins should help RIL’s earnings. For perspective, benchmark Singapore gross refining margins have averaged $6.5 a barrel for the September quarter, up from $3.5 a barrel in the June quarter.
