GAIL India net profit down 23%

GAIL India Ltd, the state-owned gas transmission utility, posted a 23 per cent decline in net profit for the quarter ended June on costly liquefied natural Gas (LNG) imports.

The company recorded a net profit of Rs 621 crore during the quarter as against Rs 808 crore in the year-ago period. It’s underrecoveries on inventory of LNG stood at Rs 190 crore, as key customers switched to other low-cost suppliers like Shell and GSPC. GAIL imported gas at $12 per million British thermal units (mmBtu) amid spot rates of $10.5 per mmBtu. Total income during the quarter, however,  rose 4.5 per cent to Rs 13,545 crore as compared to Rs 12,957 crore in the corresponding period last year.

GAIL said it lost Rs 241.5 crore in revenue after Petroleum and Natural Gas RegulatoryBoard (PNGRB) lowered its pipeline tariff. “Revenue of Rs 241.59 crore hasbeen de-recognised during the quarter ended June 30 in view of revision ofnatural gas pipeline tariff by PNGRB,” the company said in a filing to theBombay Stock Exchange (BSE).

The firm said revenue from gas marketing rose 5.5 per cent to Rs 11,669.09 crore, revenuefrom transportation fell 34 per cent to Rs 660.35 crore and revenue frompetrochemicals business dipped 10 per cent to Rs 993 crore.GAIL paid Rs 500 crore in fuel subsidy during the quarter as compared to Rs 700 crore paidin the same period a year ago. The company’s share price at the BSE todayclosed at Rs 390.1, down 4.3 per cent as compared to previous close.