Gail reports 93% drop in profit in October-December
Indian state-run gas marketing company Gail on January 30 reported a 92.5% year/year drop in standalone net profit during the October-December quarter (Q3).
Net profit stood at 2.45bn rupees ($30mn) in the October-December quarter compared with 32.87bn rupees in the same period a year ago. The profit was down 84% quarter/quarter.
Natural gas transmission volume stood at 103.74mn m3/day in Q3 as against 107.71mn m3/day in Q2. Gas marketing volume stood at 89.89mn m3/day as against 92.54mn m3/day in the previous quarter.
During the quarter, Gail acquired a 26% equity stake in a new LNG carrier from Japan’s Mitsui OSK Lines. The new building vessel will be the second MOL LNG carrier serving Gail; the parties signed a contract for the first vessel in 2019. The naming ceremony for the carrier was held in February 2021. The ship was built by Daewoo Shipbuilding & Marine Engineering and is managed by MOL LNG Transport Asia.
Gail has been facing LNG supply issues from a deal with Gazprom Marketing and Singapore (GMTS) which stopped delivering LNG under a long-term contract in late May. GMTS was a unit of Gazprom Germania but the Russian company gave up the ownership after sanctions over Russia's invasion of Ukraine.
Gail is reportedly now looking to sign a long-term LNG deal with ADNOC.