GAIL (India) Ltd is eyeing natural gas trading business to boost revenues during the current fiscal.
With the drop in domestic gas output and increased dependence on imports, the company plans to import 30 LNG cargoes (each cargo gets about 4.5 mscmd) during the current fiscal.
During the fourth quarter of 2011-12, GAIL transported 115.62 mscmd of gas, a decrease of five per cent per cent from 120.43 mscmd in the corresponding period last year.
The natural gas transmission for the full year (2011-12) decreased to 117.62 mscmd (117.91 mscmd).
Of this, 27.5 mscmd came from Reliance Industries-operated D6 block (down from 30.05 mscmd in the pervious year), said Mr B.C. Tripathi, Chairman and Managing Director, GAIL (India).
Q4 NET DOWN 38%
The company suffered a 38 per cent dent its net profit for the fourth quarter of 2011-12 due to higher subsidy outgo and seven per cent drop in its natural gas transmission business. The net profit dropped to Rs 483 crore. Revenues from natural gas transmission declined by seven per cent at Rs 846 crore (Rs 912 crore) and LPG subsidy extended to oil marketing companies was Rs 1,398 crore (Rs 901 crore) during the quarter under review.
Natural gas trading business saw a 28 per cent increase in revenues at Rs 9,121 crore. Net sales from the petrochemicals business fell by seven per cent to Rs 963 crore.
At the end of the fourth quarter, the company’s borrowings stood at Rs 5,347 crore and capital expenditure at Rs 6,753 crore.
For fiscal 2012-13, the company has planned a capital expenditure of Rs 7,354 crore. The company’s board recommended payment of total dividend at the rate of 87 per cent on the paid-up share capital for fiscal 2011-12 inclusive of 20 per cent interim dividend already paid.