Indian GEECL Sees Drop in H1 Profit
Indian coalbed methane (CBM) explorer Great Eastern Energy Corporation (GEECL) November 11 reported a sharp 78% yr/yr decline in its net profit during the six months to September 30 (H1) thanks to a drop in sales volume.
GEECL’s net profit dropped from $3.74mn to $0.82mn (pre mark to market/deferred tax expense). It sold 7.26mn ft3/day of gas in H1 compared with 10.91mn ft3/day in the same period of last year. It reported a cash profit of $3mn during H2, down from $6.18mn a year back. Revenue dropped from $19.21mn to $12.25mn. GEECL said that Covid-19 lockdown measures had had an adverse impact on sales in H1.
The company plans to invest $2bn in full-scale development of its shale resources in its Raniganj (South) CBM block in the east Indian state of West Bengal, it said earlier this year. In 2018, the government of India tweaked the rules to permit exploration and exploitation of all types of hydrocarbons including shale resources under existing CBM contracts.
GEECL expects to expand its customer base and sales once state-run Gail’s Jagdishpur - Haldia & Bokaro - Dhamra pipeline becomes operational by February 2021. “This pipeline will provide the company with the opportunity to expand its customer base and sales significantly by accessing the huge market of Kolkata and also the wider state of West Bengal,” it said.