Goldman Sachs profit warning for Reliance Petroleum

Vol 5, PW 6 (09 May 01) News in Brief

Weaker refining margins and a higher tax bill will hit next year's earnings at Reliance Petroleum, according to investment banker Goldman Sachs.

In a note on 1st May Goldman said earnings at Reliance would fall by 24% in the year ending March 2002. Reliance has asked Indian authorities for permission to offload 13% of Reliance Petroleum through an ADR or GDR issue on either the New York Stock Exchange or Luxembourg bourse.

Reliance Industries, parent company, owns 64% of Reliance Petroleum and wants to reduce its stake to 51%. A Reliance spokesman refused to comment on speculation that 10% has been reserved for Kuwait Petroleum.