Adani-Total Gas reports record profit on cost optimisation

Adani-Total Gas reports record profit on cost optimisation

Net profit of Rs 145 crore in October-December was 27 per cent higher than Rs 114 crore a year back, firm’s chief executive Suresh P Manglani said on a media call.

New Delhi: Adani Total Gas Ltd on Wednesday reported a record net profit of Rs 145 crore in the December quarter on optimising cost both for input gas and operating expenses.

Net profit of Rs 145 crore in October-December was 27 per cent higher than Rs 114 crore a year back, firm’s chief executive Suresh P Manglani said on a media call.

“This increase is mainly because of a significant decrease in operating cost and optimising gas sourcing portfolio that lowered the cost,” he said.
The firm, which is a joint venture of infrastructure conglomerate Adani Group and French energy giant Total, sells gas sourced from domestic fields or imported in form of LNG to automobiles as CNG or as piped natural gas to industries and household kitchens.

Manglani said the firm sources 48 per cent of its gas from domestic fields and the remaining is imported as liquefied natural gas (LNG).

The firm has signed a three-year deal to source LNG from the overseas market, he said without giving details. The combined volume of CNG and PNG sales was 153 million cubic meters in the third quarter, slightly lower than 154 mmcm a year back.

“Average volume in Q3 increased to 1.67 million standard cubic meters per day as compared to the average volume of 1.43 mmsmd in Q2. This volume has reached 2 mmscmd this month,” he said.

The company added 17 new CNG stations to take the total to 151 CNG stations in 10 geographical areas (GAs) in the country.

PNG home connection increased to 4.57 lakh (10,346 new connections added in Q3). Commercial and industrial connections now increased to 4,737.

Revenue from the operation was up marginally at Rs 522 crore.

“City gas stations expansion, pipeline work is going on in all the 15 GAs we have. Soon commercial operations in 5 GAs will start,” he said.

Also, the company has completed the acquisition of 5 per cent equity stake in India’s first fully automated gas exchange, Indian Gas Exchange Ltd (IGX).

Commenting on the financial result of the company, Gautam Adani, Chairman, Adani Group said, “I am witnessing the progress made by the combined synergies of Adani and Total. Our collective strengths will significantly contribute towards the creation of a gas-based economy. We are committed to taking this cleaner fuel across the nation in line with our vision to build a sustainable future.”

Manglani said the company has reported the second successive quarter of the highest ever financial performance with robust physical infrastructure growth despite an ongoing pandemic.

“We continue to pursue the strategy of expanding CGD Infrastructure on fast track mode. We are consistently encouraging society to convert their vehicles to environmental- friendly CNG and contribute in reducing the carbon footprint,” he added.

https://energy.economictimes.indiatimes.com/news/oil-and-gas/adani-total-gas-reports-record-profit-on-cost-optimisation/80680162

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