Adani Gas expects to close its deal with French oil major Total by the end of the current financial year, company officials said on Wednesday. The firm posted a two-fold rise in profit before tax (PBT), at Rs 143.62 crore.
On the Total deal, Adani Gas management said in a media call, “The primary part of the deal is closed and one of the nominees of Total is a member on the Adani Gas board. The secondary part of the deal is now going on, and should hopefully be over in the next couple of weeks.” The official added the company hopes to close the deal by the end of the current financial year. Adani Gas said in a January 14 statement that the Board of Directors has appointed Alexis Thelemaque as an additional director.
Last October, Total signed an agreement to acquire 37.4 per cent stake in Gautam Adani-led Adani Gas for about Rs 5,700 crore. As part of the process, Total was to buy shares in Adani Gas through a tender offer to public shareholders to acquire up to 25.2 per cent shares and purchase the residual from the Adani promoter family.
For the October-to-December 2019 period, Adani Gas reported a PBT after exceptional items of Rs 143.62 crore, against Rs 66.11 crore in the same period a year ago at the consolidated level. Its profit after tax (PAT) was Rs 115.54 crore, up 145 per cent from Rs 47.21 crore a year ago. “Adani Gas in the third quarter of FY20 has benefited from sweating its existing assets and enhanced coverage of newer assets. This has improved volumes and profitability,” said Suresh P Manglani, chief executive officer (CEO) for Adani Gas.
On the operations side, the company said its four geographical areas (GA)s - three in Gujarat and one in Faridabad - are operational and that it expects to have another two GAs in Rajasthan in April.