Left Menu
Development News Edition

RIL-Saudi Aramco deal unlikely to close by March-end, says CFO


RIL-Saudi Aramco deal unlikely to close by March-end, says CFO

Mukesh Ambani-led Reliance Industries is unlikely to close the deal for 20 per cent stake in its oil to chemicals business to Saudi Aramco by March 31 this year, according to a senior company official. In August last year, the company announced its plans to sell its 20 per cent stake in its flagship chemicals and refining business to Saudi Aramco in a deal valued at USD 15 billion.

The deal, is aimed at cutting its massive debt and secure an assured supply of crude oil to its refineries, was expected to be closed by March 31, 2020. "...it will not be a deal which will get done by March 31. It's a large transaction, large cross border transaction, a complex transaction and so timeline is something we have to be realistic about," its joint chief financial officer V Srikanth told reporters here.

He, however, said that the deal is making good progress and that there is engagement across teams. "If you are looking for guidelines, I am not the guy to give the timelines because we are bond by confidentiality. I can't be talking about timelines. We can only say we are progressing well," Srikanth added.

When asked if the companies would be signing the definitive agreements by March 31, he said, "we are trying to do it, but we cannot comment on timelines without engagement with them (Saudi Aramco)." During the company's annual general meeting in last August, Ambani had said that the Saudi Aramco and BP deals, along with the plans of deleveraging of telecom arm Jio's infrastructure assets will help Reliance become "a zero-net debt company within the next 18 months, that is by March 31, 2021.

On the company's debt reduction plans, Srikanth said, "the intensity of capex has been coming off quarter on quarter. From Rs 30,000 crore of capex in the first quarter, it has reduced to Rs 19,000 crore in second to Rs 14,000 crore in the third. This is in line with what we had already said that the projects are getting completed, like the Jamnagar expansion, the Jio related capex is already done, and so this is the way it is going to be. "So we are earning more than what we are spending so its going to translate in reduction in levels of debt. Our broader target is to be debt free by FY2021," he added.

The company's net debt levels have reduced from Rs 1.57 lakh crore in the second quarter of the fiscal to Rs 1.53 lakh crore in Q3 FY2020.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Videos

Latest News

NBA-Hype for Pelicans' Zion reaches peak in LeBron clash

New Orleans Pelicans rookie Zion Williamson has the kind of athleticism that is leaving NBA arenas gasping, even if he doesnt take much notice.I really dont pick it up, to be honest, Williamson told Reuters, of the crowd reaction following ...

Russia Suspends visa to Iranian and South Korean Citizens to prevent coronavirus

Russia said on Wednesday it would suspend flights to and from South Korea from March 1 to prevent the spread of coronavirus, except those operated by national carrier Aeroflot and a subsidiary, Aurora.Deputy Prime Minister Tatiana Golikova ...

UPDATE 1-Motor racing-Kubica quickest as F1 testing resumes in Spain

Ferrari warned again that they expected to be playing catch-up to champions Mercedes from the first race of the season as Formula One testing started its final week on Wednesday. We believe we are not the fastest car at the moment and we be...

UPDATE 1-Romania's president asks finance minister Citu to form government

Romanias centrist President Klaus Iohannis appointed interim Finance Minister Florin Citu as prime minister-designate to try to form a transitional government until a parliamentary election in November, seeking end to political deadlock. La...

Give Feedback