GAIL Posts 46% Decline In Q2 Net Profit At Rs. 1,537 crore

Due to ongoing geopolitics, there has been disruption in Liquified Natural Gas, the PSU said in an exchange filing

Gas Authority of India Limited (GAIL), on Friday, posted a 46 percent year-on-year decline in standalone profit after tax at Rs 1,537 crore for the quarter ended September 2022, due to supply disruptions from a former unit of Russian energy giant Gazprom.

Net profit stood at Rs 2,862.95 crore in the same quarter last fiscal. Sequentially, too, net profit was lower by about 47 percent.

GAIL’s revenue from operations jumped 78 percent YoY to Rs 38,479 crore. Sequentially, revenue gained 2.4 percent from Rs 37,562 crore during the June quarter.

Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA, came in at Rs 1,765 crore, lower by 59 percent quarter-on-quarter. Margins also contracted to 4.6 percent from 11.6 percent in the June quarter.

“Due to ongoing geopolitics, there has been disruption in Liquified Natural Gas (LNG) cargo supplies by one of the long-term LNG suppliers,” the company said in an exchange filing.

The company has taken various measures which includes reduction of supplies to downstream customers and its internal consumption at Pata petrochemical plant by reducing petrochemical production to have sustainable operation, it added.

Natural gas marketing segment, which is the biggest contributor to the company’s revenues, saw a growth in sales but decline in profits. Revenue doubled to Rs 35,465.35 crore from Rs 17,876.53 crore from the year-ago period.

However, the segment’s profit before tax almost halved to Rs 1,875 crore from Rs 3,682 crore in the same quarter last fiscal, largely on the back of surge in energy prices after Ukraine-Russia war.

GAIL transported 107.71 million standard cubic metres per day of natural gas in Q2, down from 109.47 mmscmd in the previous quarter. Gas marketing volumes also dropped almost 8 per cent to 92.54 mmscmd.

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