State gas utility GAIL India Ltd today reported 15 per cent rise in the April-June quarter net profit on higher earnings from trading of gas and sale of liquid hydrocarbons.
Net profit rose to Rs 1,134 crore in April-June from Rs 985 crore in the corresponding previous year quarter,GAIL Chairman and Managing Director B C Tripathi told reporters here.
Turnover was up 25 per cent to Rs 11,089 crore.
The company shelved out Rs 700 crore towards LPG subsidy,a marginal increase from Rs 682 crore in Q1 of 2011-12 fiscal.
Upstream firms make up for about one-third of the revenues that refiners lose on selling auto and cooking fuel retailers at government controlled rates,which are way below market cost.
Tripathi said sales from natural gas trading increased by 28 per cent to Rs 9,242 crore while revenue from gas transmission fell 2 per cent to Rs 915 crore.
The net sales from LPG and other liquid hydrocarbons rose by 32 per cent to Rs 1,072 crore.
GAIL’s earnings before tax from natural gas trading increased 58 per cent to Rs 495.64 crore while profit before tax from sales of LPG and liquid hydrocarbons climbed 91 per cent to Rs 437.27 crore.
“We imported three LNG (liquefied natural gas) cargoes from the spot market this fiscal — one in April-June quarter and two in July … we expect to import 25-30 spot cargoes this fiscal,” he said.
The company plans to invest Rs 7,354 crore in pipeline expansion and other projects,45 per cent of which would be met through internal resources.
The remaining 55 per cent would be met through borrowings,he said adding GAIL has already raised Rs 750 crore through a rupee bonds issue and would raise USD 450 million in external commercial borrowings shortly.
Natural gas transmission during the first quarter was 109.82 million standard cubic meters per day as against 117.16 mmscmd in the corresponding quarter of the last year.
“We are transporting about 21 mmscmd of gas from Reliance Industries’ KG-D6 fields as against 30 mmscmd in the year ago period,” he said.
GAIL gained 3 per cent,the most since June 8,to Rs 355.75 rupees at the close on the BSE.
Tripathi said the Dabhol-Bangalore gas pipeline was on schedule for completion by year end while the Kochi-Kanjirkkod-Bangalore-Mangalore pipeline would be completed by December 2013.
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