GAIL Q3 profit rises 36% to `3,867.38 cr

PTI NEW delhi

State-owned gas utility GAIL (India) Ltd on Thursday reported a 36 per cent rise in net profit in the December quarter after a one-off gain from compensation received from an overseas LNG supplier for non-delivery of committed cargoes.

It posted a standalone net profit of Rs 3,867.38 crore in the October-December period of FY25 compared with Rs 2,842.62 crore in the year-ago period, India's biggest gas transportation and marketing company said in a stock exchange filing.

Revenue from operations was almost unchanged at Rs 34,957.76 crore with all three major business segments – natural gas and LPG transportation services, natural gas marketing and petrochemicals – reporting nearly the same revenues as the previous year. The company had an exceptional income of Rs 2,440.03 crore as compensation received from a former unit of Russian energy giant Gazprom.

GAIL had in December 2023 initiated legal proceedings against SEFE Marketing & Trading Singapore Pte Ltd in the London Court of International Arbitration for non-delivery of liquefied natural gas (LNG) under a long-term contract.

It sought USD 1.817 billion in compensation for the default in delivery of committed cargoes by SEFE. Earlier this month, it agreed to end the arbitration after SEFE paid USD 285 million (Rs 2,440.03 crore). GAIL had in 2012 signed a 20-year deal to buy as much as 2.85 million tonnes per annum of LNG with Russian energy giant Gazprom.

The deal was signed with Gazprom Marketing and Singapore (GMTS), which at the time was a unit of Gazprom Germania, now called SEFE. The Russian parent gave up ownership of SEFE after sanctions on Moscow in 2022.