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    India's Adani Gas Profit Jumps in Q2

Summary

Revenue was down 12% yr/yr, however.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Corporate, Financials, Gas for Transport, News By Country, India

India's Adani Gas Profit Jumps in Q2

Mumbai-listed Adani Gas, one of India’s biggest city gas distribution (CGD) companies, on November 3 reported a 13% yr/yr increase in net profit for the three months up to September 30.

Net profit came in at rupees 1.36bn ($17mn) compared with rupees 1.2bn in the same period of last year. Revenue reached rupees 4.41bn, down 12% yr/yr.

Adani sold 131mn m3 of gas during the quarter, against 140mn m3 in the year-earlier period, the company said. The company’s compressed natural gas (CNG) sales came to 59mn m3, down 21% yr/yr, while piped natural gas (PNG) sales were 71mn m3, up 2% yr/yr.

The company said it is planning to expand its existing infrastructure. “The vision has always been to boost gas infrastructure and the city gas distribution network in order to reach all 19 geographical areas awarded to Adani Gas,” CEO Suresh Manglani said. “We are actively pursuing the strategy of expanding PNG and CNG Infrastructure on fast track mode. Apart from PNG, we are consistently encouraging society to convert their vehicles to environmental- friendly CNG and contribute in reducing the carbon footprint.”

The company said its board has approved raising $400mn in US dollar-denominated bonds to fund capital expenditure for the next two years. Adani Gas has also decided to change its name to Adani-Total Gas to reflect the French major’s participation in the joint venture. Total bought a stake in Adani Gas last year.