State-owned GAIL India today reported 19% rise in net profit for the quarter ended September 30, 2011, on the back of higher gas trading volumes.
The net profit increased to Rs 1,094 crore in July-September period of 2011 from Rs 924 crore in the year-ago period, GAIL Chairman and Managing Director B C Tripathi told reporters here.
The surge was despite company's fuel subsidy pay-out rising from Rs 347 crore in Q2 of 2010-11 fiscal to Rs 567 crore in the current fiscal.
Upstream oil firms like ONGC and GAIL are made to pay for one-third of the revenues that retailers lose on selling diesel, LPG and kerosene at government-controlled rates.
"Major reason for increase in net profit was higher volumes of natural gas traded in the quarter," Tripathi said, adding that GAIL sold 84 million standard cubic meters per day in the quarter compared to 79 mmscmd a year ago.
Turnover was up 20% at Rs 9,699 crore.
Sales from petrochemical business were up 30% to Rs 938 crore, while revenue from natural gas trading soared 20% to Rs 7,575 crore.
Revenue from natural gas transmission business was almost static at Rs 980 crore.
Tripathi said in next couple of months GAIL would raise $300 million through external commercial borrowings (ECBs) to fund its Rs 7,200 crore capital expenditure for the current fiscal.
To make up for the falling production from Reliance Industries' eastern offshore KG-D6 gas fields, GAIL imported 4 shiploads or cargoes of liquefied natural gas (LNG) from the spot market overseas.
A similar volume is expected to be imported in the current quarter.
"We imported 8 cargoes of LNG from spot market in the first half of current fiscal and a similar quantity is planned to be imported in the second half," he said. "We are importing one-and-a-half cargo every month."
During the second quarter of the current financial year, petrochemical production was 111,000 tonnes, up by 19% from 93 TMT in the corresponding period last year.
The polymer sales during the second quarter of the current financial year were 129,000 tonnes, an increase of 21% from 107,000 tonnes a year ago.
Natural gas transportation during the second quarter of the current financial year was 118.62 mmscmd, an increase of 3% from 114.89 mmscmd of last year.
During April-September, GAIL reported a 22% rise in turnover to Rs 18,566 crore and 15% growth in net profit to Rs 2,079 crore.
