Gujarat Gas Net Sales Up, India

Gujarat Gas Consolidated Net Sales for the quarter was Rs 7,629 million as compared to Rs 7,143 million in the same quarter previous year, an increase of 7%. The consolidated Profit after Tax (PAT) for the quarter was Rs 595 million, compared to Rs 654 million in the same quarter previous year.

There was a significant fall in indigenous gas supply during the quarter. The company addressed the shortfall in supplies with a higher proportion of RLNG. This pushed up the average cost of gas. Selling prices were revised to the extent feasible to partially mitigate the sharp increase in cost. The total volume of gas sold during the quarter was 264 mmscm compared to 304 mmscm in the corresponding quarter of the previous year. Volumes in the industrial segment have been undergoing a churn with increasing price of gas.

The Company connected more than 10,800 new residential customers, converted about 6,000 vehicles to CNG and commissioned more than 44,000 scmd of new volumes in the industrial sector during the quarter.

Speaking on the occasion of the results, Mr. Sugata Sircar, Managing Director, said: “GGCL continues to connect new customers in different segments. The gas cost scenario has made it necessary to optimize volumes and prices very carefully to sustain value. Investment in network extension, which has been the highest in the last four quarters compared to previous years, will enable us to reach new and growing markets. The company endeavours to ensure supply security to its customers, prioritising on households and CNG customers in times of shortfall. The company has filed tariffs post authorisation from the PNGRB for its transmission pipeline and has received authorisation for its city gas distribution areas of Surat, Bharuch and Ankleshwar.”

Gujarat Gas Company Limited, a subsidiary of BG Group pic (65.12%), currently distributes approximately 2.9 mmscmd of natural gas. GGCL continues to be India’s premier gas distribution company with a proven expertise in distributing gas to the entire range of customers – Industrial, Commercial, Domestic and CNG. GGCL distributes gas to about 386.000 industrial, commercial and domestic customers through its pipeline network and CNG to over 198,000 vehicles through 55 retail outlets.

On 3rd October 2012, the Company’s majority shareholder, BG Asia Pacific Holdings Pte Limited (BGAPH), has signed a Sale and Purchase Agreement with GSPC Distribution Networks Limited (GDNL), for sale of its entire shareholding in the Company. BGAPH’s shares will be transferred to GDNL after the satisfaction of conditions in the agreement.

1 Indian rupee = 0.018481 U.S. dollars

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LNG World News Staff, May 6, 2013; Image: Gujarat Gas