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GAIL gains in fourth quarter

Oilfield Technology,

GAIL India, the nation’s monopoly gas distributor, has reported a better-than-expected result for the December 2009 quarter. The company more than tripled its profits for the quarter (to Rs 860 crore), while it transported an additional 29% of natural gas at 109 million m3/d.

Its liquid hydrocarbons business posted a robust profit of Rs 125 crore, compared to a loss of Rs 250 crore in the December 2008 quarter.

GAIL has reduced E&P expenditure, writing off Rs 20.2 crore in the quarter. Staff costs also reduced against the previous year as GAIL reversed some earlier staff cost provisions.

At the same time, the cost of its traded goods came down 11%, mainly due to the reduction in imported LNG rates.

GAIL is investing heavily to lay the national gas grid and is planning to add over 6600 km of pipelines in the next three years.

GAIL also plans to raise the equivalent of about 20 billion rupees (US$ 439 million) selling bonds overseas for the first time to fund spending on projects including pipelines.

The state-owned company may sell the bonds starting in April. The bond sale is part of a plan to raise 50 billion rupees during the year.

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