GAIL net profit falls 23 per cent on low tariff, high LNG import price
GAIL India Ltd today reported a 23 per cent drop in its first quarter net profit as it imported high priced LNG amidst falling international rates for the commodity.
By PTI | Updated:
NEW DELHI: GAIL India Ltd on Monday posted a 23 per cent drop in its net profit for the first quarter, hurt by low pipeline tariff and high prices of imported gas that led customers to choose cheaper options.
The state-run company GAIL India Ltd that operates the nation’s largest gas pipeline network posted a net profit of Rs 621.44 crore for the April-June quarter, compared with Rs 808.17 crore a year earlier.
Total revenue rose 4 per cent to Rs 13,337 crore. While revenue from gas marketing increased 5.5 per cent to Rs 11,669.09 crore, that from transportation fell 34 per cent to Rs 660.35 crore. Petrochemicals revenue dropped 10 per cent to Rs 993 crore.
GAIL lost Rs 241.59 crore in revenue after the Petroleum and Natural Gas Regulatory Board lowered the tariff to transport gas through its pipeline, the company said in a news release.
It also booked an under-recovery of Rs 190.31 crore as its inventory of liquefied natural gas ( LNG) piled up due to customers opting to take supplies from other importers of the fuel who offered lower prices.
GAIL imported LNG at about $12-13 per million British thermal unit, even as spot LNG rates in international markets fell to $10.50 per mmBtu in May-June. This led customers to opt for cheaper gas from importers like Shell and GSPC.
The state-run company GAIL India Ltd that operates the nation’s largest gas pipeline network posted a net profit of Rs 621.44 crore for the April-June quarter, compared with Rs 808.17 crore a year earlier.
Total revenue rose 4 per cent to Rs 13,337 crore. While revenue from gas marketing increased 5.5 per cent to Rs 11,669.09 crore, that from transportation fell 34 per cent to Rs 660.35 crore. Petrochemicals revenue dropped 10 per cent to Rs 993 crore.
GAIL lost Rs 241.59 crore in revenue after the Petroleum and Natural Gas Regulatory Board lowered the tariff to transport gas through its pipeline, the company said in a news release.
It also booked an under-recovery of Rs 190.31 crore as its inventory of liquefied natural gas ( LNG) piled up due to customers opting to take supplies from other importers of the fuel who offered lower prices.
GAIL imported LNG at about $12-13 per million British thermal unit, even as spot LNG rates in international markets fell to $10.50 per mmBtu in May-June. This led customers to opt for cheaper gas from importers like Shell and GSPC.
ADVERTISEMENT
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
First signs of LNG traffic return emerge at Strait of Hormuz with a relief for PakistanADVERTISEMENT
