Gail net profit up 12.7% to Rs 968 cr

State gas utility GAIL India today reported 12.7 per cent jump in its net profit for the quarter ended December 31, 2010, on higher gas trading and transmission margins.

Net profit in October-December rose to Rs 968 crore as compared to Rs 859 crore in the year-ago period, GAIL Chairman and Managing Director B C Tripathi told a reporters here.

"The increase in net profit during the third quarter of the current financial year was mainly due to the increase in natural gas transmission, LPG transmission and natural gas trading business," he said.

The company turnover soared 35 per cent to Rs 8,365 crore.

Tripathi said GAIL has raised Rs 500 crore through a bonds issue and is planning to further raise $150 million through external commercial borrowings (ECB) next month.

Besides, it is planning to take a loan of Rs 300 crore from Oil Industry Development Board (OIDB) to meet its capex requirements, he said, adding that GAIL was looking at the foreign currency bond (FCB) issue of $150-200 million in the next fiscal.

Tripathi said GAIL has expanded the capacity of its Dahej-Vijaipur pipeline to 35 million standard cubic meters per day from 24 mmscmd.

Moreover, the company will in 2011 add 1,500-km of pipeline at an estimated cost of about Rs 10,000 crore to raise its gas transmission capacity to 230 mmscmd from current 180 mmscmd, he said.

"GAIL will invest another Rs 35,000 crore over the next 3-4 years in laying new pipelines," he said.

During the third quarter, revenues from natural gas transmission business rose by 17 per cent to Rs 1,001 crore while the same from gas trading jumped by 50 per cent to Rs 6,773 crore.

Sale of petrochemicals fell by 30 per cent to Rs 571 crore and turnover from LPG and liquid hydrocarbons business was up by 2 per cent to Rs 729 crore.

Tripathi said GAIL paid Rs 418 crore in Q3 to subsidise auto and cooking fuel, which is down from Rs 455 crore for the same quarter a year ago.

Natural gas sales in October-December quarter was up by 3 per cent to 83.36 million standard cubic meters per day while GAIL's pipeline network transported 10 per cent more gas at 120.19 mmscmd.

LPG transmission was up by 9 per cent to 893,000 tons.

Petrochemical production dipped by 6 per cent to 102,000 tonnes and polymer sales declined 33 per cent to 81,000 tonnes.

GAIL reported 25 per cent rise in its net profit in the April-December period to Rs 2,778 crore, with a rise in turnover at Rs 23,565 crore from Rs 18,474 crore in the first nine months of the previous fiscal.