India's Gail reports 77% drop in profit in January-March

Indian state-run gas marketing company Gail May 18 reported a significant decline in net profit for the January-March quarter (Q4FY2023). The company's net profit dropped by 77.5% compared to the same quarter last year, reaching 6.03bn rupees ($73 million). However, the profit showed an improvement of nearly 1.5 times compared to the previous October-December quarter.

Gail faced challenges in LNG supply due to a deal with Gazprom Marketing and Singapore (GMTS). Under the long-term contract, GMTS halted the delivery of LNG in late May. GMTS, previously a unit of Gazprom Germania, relinquished ownership after facing sanctions related to Russia's invasion of Ukraine.

According to reports from the Press Trust of India, the former Gazprom unit, now known as Sefe Marketing and Trading Singapore, has resumed supplying LNG to Gail. Gail's managing director, Sandeep Gupta, stated that Sefe Marketing and Trading Singapore provided two cargoes each in March and April and has committed to delivering four shiploads each in May and June.

In 2012, Gail signed a 20-year agreement with GMTS to purchase 2.85mn metric tons/year of LNG. The supplies commenced in 2018, and the full volume was expected to be reached by 2023.