Owing to an impairment charge of Rs 783 crore for Ratnagiri Gas and Power (RGPPL), state-owned GAIL (India) on Monday announced mixed results. While profit after tax (PAT) for 2016-17 rose 57% to Rs 3,503 crore from Rs 2,226 crore a year ago, PAT in the fourth quarter of 2016-17 fell to Rs 260 crore compared with Rs 832 crore achieved in the same quarter last year. GAIL holds 25.51% in RGPPL, and other stakeholders include NTPC and private investors.
According to a company release, profit rose mainly due to a turnaround in the petrochemical business, apart from profit in gas transmission business and partial sale of stake in Mahanagar Gas, which offset lower realisations in polymer and liquid hydrocarbons.
The board of the company, which met on Monday, proposed a final dividend of Rs 2.70 per share taking the total dividend for the year to Rs 1,535 crore, an increase of 120% compared with 2015-16. The earning per share is up 57% to Rs 20.71 per share on increased paid-up equity. The company had issued one bonus share for every three equity shares held last year.In terms of production volumes, GAIL’s petrochemicals sale increased by 73%, natural gas marketing and transmission volumes were up 10% and 9%, respectively, and liquefied petroleum gas transmission volume was up 19% whereas liquid hydrocarbon sales fell 2%.
Time-swap deal for US LNG
GAIL India has signed a first-ever time-swap deal to sell some of its US liquefied natural gas (LNG) as it rejigs the supply portfolio in line with domestic demand. GAIL Chairman and Manging Director B C Tripathi said the company is to receive LNG from its shale gas project in US from March next year.