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LNG supply compensation helps GAIL report Rs 4,084 Cr profit in Q3 FY25

LNG supply compensation helps GAIL report Rs 4,084 Cr profit in Q3 FY25


State-run GAIL on Thursday reported a 52 per cent year-o-year growth in its consolidated net profit at around ₹4,084 crore in Q3FY25 aided by a ₹2,440 crore compensation for LNG supplies. Sequentially, net profit rose by 28 per cent.

India’s largest gas utility’s consolidated total income was higher at around ₹37,315 crore in Q3FY25, against ₹34,258 crore in Q2FY25 and ₹35,1822 crore in Q3FY24.

GAIL CMD Sandeep Kumar Gupta said, in Q3FY25, GAIL has accounted for an exceptional income of $285 million (₹2,440 crore) from SEFE Marketing & Trading Singapore as settlement towards withdrawal of arbitration proceedings. This is on the supply of liquefied natural gas (LNG) supply deal.

“Consequent upon settlement agreement dated January 15, 2025 entered with one of the LNG supplier, which includes payment of $285 million by LNG supplier to the company towards settlement of litigation for non-supply of LNG cargoes during FY23, the company has recognised₹2,440.03 crore ($285 million) as an exceptional income during the quarter and nine months ended December 31, 2024,” it said in a BSE results filing.

Interim dividend

GAIL’s Board has declared an interim dividend of ₹6.50 per equity share amounting to ₹4,273.81 crore.

In an analyst call earlier during the day, GAIL management said that it expects to supply 129-130 MSCMD gas in Q4FY25. Besides, the PSU is also exploring long-term LNG deals.

GAIL reported a marginal annual growth in its gross sales from the gas marketing business. Gas marketing revenue stood at ₹28,285 crore in Q3FY25 against ₹28,080 crore a year-ago.

During Q3FY25, GAIL’s average natural gas transmission volume rose by 3.6 per cent y-o-y to 125.93 million standard cubic meters per day (MSCMD). However, volume was down by around 3.6 per cent on a q-o-q basis. Gas marketing volume rose by 5.4 per cent y-o-y and 7.1 per cent q-o-q at 103.46 MSCMD.





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