December 02, 2008

PSL Ltd net in Q1 up by 59% YoY

Reuters reported that Indian pipe major PSL Limited’s quarterly profit went up by half on heavy orders as soaring crude oil prices boosted demand for pipes from explorers and oil & gas transporters. As per report PSL recorded net profit of INR 260.4 million in April to June up by 59% in net sales to INR 6.5 billion.

Mr Ashok Punj MD of PSL Ltd said that an unprecedented rise in prices of crude oil makes it worthwhile for exploration companies to push the boundaries to find new deep sea deposits. He said that "With crude at over USD 140 a barrel, these marginal fields have suddenly become productive. That is the kind of pull oil prices have on pipe demand."

Mr Punj said that "We are determined to further enhance our order book position and execute it in a timely manner given our large capacity preparedness. He said that we have kept it at bay till the market settles down. Equity is not an option. We can't even defer the projects as demand is pulling our capacities."