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Gail Q3FY25 results: Net profit increases 36% to Rs 3,867.38 crore

It posted a standalone net profit of Rs 3,867.38 crore in the October-December period of FY25 compared with Rs 2,842.62 crore in the year-ago period

Gail India

The company had an exceptional income of Rs 2,440.03 crore as compensation received from a former unit of Russian energy giant Gazprom. | Photo: Bloomberg

Press Trust of India New Delhi

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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 Rs 3,867.38 crore in the October-December period of FY25 compared with Rs 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 Rs 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 Rs 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 & Trading Singapore Pte Ltd in the London Court of International Arbitration for non-delivery of liquefied natural gas (LNG) under a long-term contract.  ALSO READ: Dr Lal Path Labs Q3FY25 results: Net profit jumps 19% to Rs 96.7 crore

It sought $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 $285 million (Rs 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 $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 Rs 2,440.03 crore ($285 million) as an exceptional income during the quarter and nine months ended December 31, 2024," Gail said.  ALSO READ: Adani Enterprises Q3 result: Profit drops sharply by 97% to Rs 58 crore

During the October-December quarter, Gail's earnings before tax from gas transportation business rose to Rs 1,370.29 crore from Rs 1,402.81 crore a year back. Natural gas marketing saw a 53 per cent jump to Rs 2,880.98 crore. Petrochemical margins, however, shrank to Rs 4.68 crore from Rs 61.94 crore in the October-December period 2023 and Rs 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 Rs 9,263.29 crore.

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

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First Published: Jan 30 2025 | 3:41 PM IST

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