GSPC posts net profit of Rs 374 crore for H1 of FY17

Firm had reported a Rs 370 crore loss in the year-ago period

State-owned Gujarat State Petroleum Corporation Limited (GSPC) on Wednesday stated that it has reported a profit after tax (PAT) of Rs 374.03 crore for the first half of 2016-17, ended September 30.

As against this, the company had reported a loss of Rs 369.55 crore in the corresponding period a year ago, on the back of 'exceptional items such as writing off of exploration costs'. GSPC, which adopted and complied with the requirements of Indian Accounting Standards considering April 1, 2015 as the transition date, saw its gas trading volumes increase by 10.61 per cent for H1 of FY'17.

"During the first half this fiscal, the volumes of gas traded increased by 8.18 million British thermal units (mmbtu), an increase by 10.61 per cent in gas quantity traded," the company stated in an official communique.

However, the company's revenues from gas trading amounted to Rs 4,395.32 crores for first half of the current fiscal, down from Rs 5181.67 crore for the said period last year, registering a fall of 15.18 per cent. "The decrease in these revenues was mainly on account of falling crude prices in the international market leading to corresponding fall in international gas prices," the company stated.

While GSPC had written off exploration costs worth Rs 605.17 crore during first half of previous fiscal 2015-16, the company wrote off exploration costs of Rs 33.01 crores in H1 of FY'17.

Meanwhile, on the exploration and production (E&P) side, GSPC has already set up production facilities in its KG Block's Deen Dayal West Field and carried out hydrofracturing activities in its DDW-D4 Well. The company hoping to add "significant value to its future development wells" that could boost GSPC's E&P income.