Gujarat Gas net up 21.85%

Riding high on continual rise in CNG conversion of vehicles, Gujarat Gas Company Limited posted a net profit of Rs 58 crore for the quarter ended June 30, 2010 as against Rs 47.6 crore in the corresponding quarter in the previous year, registering a growth of 21.85 per cent. The consolidated net sales for the quarter were Rs 409.4 crore, compared to Rs 3,31.6 crore in the corresponding quarter of the previous year.

The total volume of gas sold during the quarter was 297 mmscm compared to 249 mmscm in the corresponding period last year. More than 5,500 vehicles were converted to CNG during the quarter, taking the total number of CNG vehicles in the company’s operational areas to more than 119,000. Also, two new CNG stations were added during the quarter.

Regassified LNG (RLNG), together with higher availability of gas from indigenous sources continued to support growth in sales volumes.

"While short term RLNG contracts continue to enable us to meet current demand, the company is assessing options for entering into long term contracts for supply of RLNG to sustain growth. Continued focus on cost optimization has ensured consistent business performance. The company continues to invest in network extension and infrastructure upgradation to support growth," said Shaleen Sharma, managing director of GGCL.

The company continues to engage with the producers of KG D6 gas, which has been allocated to GGCL on a fall back-basis, for finalization of a sales purchase agreement, Sharma added. The Ministry of Petroleum and Natural Gas has notified Section 16 of the PNGRB Act 2006 with effect from July 15, 2010, thereby now providing the PNGRB the powers to grant authorization to entities under PNGRB Act.