Adani Total Gas, India's largest gas company, posts lower profit for the quarter as input costs increase

Adani Total Gas in India reported a decline in its quarterly profit on Sunday, as the cost of gas increased after the government reduced cheap supplies.

The company's consolidated net income, which is a joint venture between Adani Group, the French oil giant TotalEnergies SE and a subsidiary of Adani Group, fell by about 3.8% compared to a year ago, falling to $19 million in the second quarter.

In April, the Indian government reduced its allocation of low-cost gas to city distributors like Adani Total Gas. The reason given was a decrease in production by gas producers.

India's gas production dropped by 0.9% in April and then 3.6%, 2.8% and 2.8% respectively in May and in June.

The company was forced to source more expensive gas in order to maintain an uninterrupted supply.

Natural gas costs increased by 30.6% for the company, resulting in a 27% increase in total expenses.

The company's CNG sales, which make up more than half its total sales, increased by 21% in the third quarter as it expanded its network.

Adani Total Gas has added three new CNG stations to its total of 650 by June 30, bringing the number up to 670.

The volume of sales in the segment for piped natural gas grew by 6%.

The total revenue generated from operations increased by 20.9%, to 14,98 billion rupees.

The shares of this company closed almost flat before the announcement.

(source: Reuters)