India's GAIL Q3 profit slumps on supply hit

Birds fly past the logo of India's state-owned natural gas utility GAIL (India) Ltd in New Delhi
Birds fly past the logo of India's state-owned natural gas utility GAIL (India) Ltd installed on its corporate office building in New Delhi, India, April 26, 2018. REUTERS/Adnan Abidi

BENGALURU, Jan 29 (Reuters) - GAIL (India) Ltd (GAIL.NS), the country's largest gas distributor, reported an almost 93% slump in quarterly profit on Monday, hit by lower gas sales due to supply disruptions.

The state-owned gas company's standalone profit tumbled to 2.46 billion rupees ($30.14 million) in the quarter ending Dec. 31, from 32.88 billion rupees a year earlier.

GAIL's revenue from operations jumped more than 37% to 353.80 billion rupees on price hikes to customers.

The company recorded a natural gas marketing loss of 860.2 million rupees against a profit of 17.50 billion rupees a year ago.

Profit before tax at the natural gas transmission segment more than halved to 4.26 billion rupees.

The state-owned firm is reeling from the impact of Russia-owned Gazprom Marketing and Trading's failure to deliver some liquefied natural gas (LNG) cargoes following western sanctions on Moscow over its invasion of Ukraine last year.

GAIL signed a 20-year deal with Gazprom Marketing and Trading Singapore (GMTS) in 2012 for annual purchases of an average of 2.5 million tonnes of liquefied natural gas (LNG).

GMTS was a unit of Gazprom Germania, now called Sefe, but the parent abandoned the business last April after the western sanctions.

($1 = 81.6100 Indian rupees)

Reporting by Nallur Sethuraman in Bengaluru; Editing by Dhanya Ann Thoppil

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