Daniel Ricciardo is wary of Ferrari and Williams masking their true pace but is satisfied with his Red Bull's performance during Friday practice despite an engine blow out.

The Australian's track time was prematurely cut short after his power unit conked out in the final 30 minutes of the second free practice session. Despite the engine failure his quickest lap of 1m 24.451secs was enough to hand him third place on the timesheet, ahead of Nico Rosberg's Mercedes and both Ferrari and Williams cars.

Rating his day as 'one of our better Fridays' Ricciardo is confident Red Bull can take the fight to Ferrari and Williams but feels Mercedes are still out of reach.

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"I expect Rosberg to get back in front of us but if we can be the second best team then it'll be a really good race," Ricciardo said. "You don't know what they [Ferrari and Williams] are doing and how much they have turned it down. I'm sure we are not half a second in front of Ferrari but if we are a tenth in front I'll take that.

"We are looking more competitive which is important. Both Danny and I are happy with the car. A few little things here and there but generally a good day for us and the team."

Ricciardo, who claimed victory at the Hungaroring 12 months ago, explained the cause of his engine blow up is under investigation but won't force a penalty as it wasn't the power unit selected for the race.

"It is some sort of engine issue, there was a lot of smoke and I lost all power," he explained. "It is the old engine, not the new one that I will be using tomorrow and in the race, so I won't need to take a penalty for this.

"I made a joke of it at the time but our pace on the long run was really strong and my engineer was telling me we were quickest on track with the soft tyre. Then when we had the problem I just thought I'd joke a little bit about it.

"We have to carry it into tomorrow but we have good pace in both sessions with both cars is good. I think the low fuel we are more or less there and the high fuel is looking really good, so it has been a good day."