GAIL Q3 profit rises 36 per cent on compensation from LNG supplier

| | new Delhi
1 2 3 4 5
  • 0

GAIL Q3 profit rises 36 per cent on compensation from LNG supplier

Friday, 31 January 2025 | PTI | new Delhi

State-owned gas utility GAIL (India) Ltd on Thursday reported a 36 per cent rise in net profit in the December quarter after a one-off gain from compensation received from an overseas LNG supplier for non-delivery of committed cargoes.

It posted a standalone net profit of `3,867.38 crore in the October-December period of FY25 compared with `2,842.62 crore in the year-ago period, India's biggest gas transportation and marketing company said in a stock exchange filing.

Revenue from operations was almost unchanged at `34,957.76 crore with all three major business segments - natural gas and LPG transportation services, natural gas marketing and petrochemicals-reporting nearly the same revenues as the previous year.

The company had an exceptional income of `2,440.03 crore as compensation received from a former unit of Russian energy giant Gazprom.

GAIL had in December 2023 initiated legal proceedings against SEFE Marketing and Trading Singapore Pte Ltd in the London Court of International Arbitration for non-delivery of Liquefied Natural Gas (LNG) under a long-term contract.

It sought USD 1.817 billion in compensation for the default in delivery of committed cargoes by SEFE. Earlier this month, it agreed to end the arbitration after SEFE paid USD 285 million (`2,440.03 crore).

GAIL had in 2012 signed a 20-year deal to buy as much as 2.85 million tonnes per annum of LNG with Russian energy giant Gazprom.

The deal was signed with Gazprom Marketing and Singapore (GMTS), which at the time was a unit of Gazprom Germania, now called SEFE.

The Russian parent gave up ownership of SEFE after western sanctions were imposed on Moscow over its invasion of Ukraine in 2022.

SEFE had stopped supplying LNG to the Indian company in June 2022 to meet its own demand. It resumed supplies in March 2023. GAIL had sought damages for the period of non-supply.

"Consequent upon settlement agreement dated January 15, 2025 entered with one of the LNG supplier, which includes payment of USD 285 million by LNG supplier to the company towards settlement of litigation for non-supply of LNG cargoes during FY 2022-23, the company has recognised `2,440.03 crore (USD 285 million) as an exceptional income during the quarter and nine months ended December 31, 2024," GAIL said.

During the October-December quarter, GAIL's earnings before tax from gas transportation business rose to `1,370.29 crore from `1,402.81 crore a year back. Natural gas marketing saw a 53 per cent jump to `2,880.98 crore. Petrochemical margins, however, shrank to `4.68 crore from `61.94 crore in the October-December period 2023 and `157.49 crore in the preceding quarter of July-September 2024.

For the first nine months of the current fiscal year, net profit rose by 39 per cent to `9,263.29 crore.

The board of directors of the company in their meeting on Thursday declared an interim dividend of `6.50 per equity share, amounting to `4,273.81 crore.

Later, GAIL in a statement said during the quarter under review, the average natural gas transmission volume stood at 125.93 million standard cubic meters per day as against 130.63 mmscmd in Q2 FY25.

Trending News

more

State Editions

AAP MLAs suspended for disruption during Assembly session

26 February 2025 | Staff Reporter | Delhi

Delhi LG addresses new Assembly, presents BJP's 10-point agenda

26 February 2025 | Staff Reporter | Delhi

CAG finds Delhi liquor wholesalers ignored quality test compliance

26 February 2025 | Staff Reporter | Delhi

AAP, BJP clash over liquor policy

26 February 2025 | Staff Reporter | Delhi

Report reveals financial irregularities in Delhi's excise system

26 February 2025 | Staff Reporter | Delhi

Delhi excise policy created monopoly risks

26 February 2025 | Staff Reporter | Delhi

AAP MLAs suspended for disruption during Assembly session

26 February 2025 | Staff Reporter | Delhi

Delhi LG addresses new Assembly, presents BJP's 10-point agenda

26 February 2025 | Staff Reporter | Delhi

Sunday Edition

A Sky Full of Wings

16 February 2025 | SAKSHI PRIYA | Agenda

Worlds within the fair

23 February 2025 | SAKSHI PRIYA | Agenda

The royal taste of awadh

23 February 2025 | SAKSHI PRIYA | Agenda

Taste of Purani Dilli in Every Bite

23 February 2025 | Gyaneshwar Dayal/ABHI SINGHAL | Agenda

Vhah: What a festival

23 February 2025 | Gyaneshwar Dayal | Agenda

A Sky Full of Wings

16 February 2025 | SAKSHI PRIYA | Agenda

Worlds within the fair

23 February 2025 | SAKSHI PRIYA | Agenda