Adani Total Gas in India reports lower profits as imports increase costs
Adani Total Gas in India reported a drop in its second-quarter profits on Tuesday as higher costs for gas imports, after the government reduced cheaper supplies, weighed on earnings.
The city gas distributor is a joint venture of Adani Group with French energy giant TotalEnergies. Its consolidated net profits fell by 12%, to 1.63 billion rupees (about $18.5 million), in the three-month period ended September.
In April, India's government cut the amount of natural gas distributed to distributors at low cost. This forced companies to import gas that was more expensive. This policy change had a lasting impact on the second quarter.
Natural gas costs increased by 29% for the company, resulting in a 26% increase in total expenses.
India's gas production fell for the third consecutive month in September, dropping 3.8% on an annual basis.
Adani Total Gas' Chief Executive Suresh Manglani stated in a press release that the company is closely monitoring "the changing situation" with regard to allocation.
The revenue from operations increased by 19.6%, to 15.76 billion rupees. This was boosted by a 18% rise in the sales volume of compressed natural gases, which accounts more than half of all sales.
Adani Total Gas shares ended 0.3% higher before its results. ($1 = 87.8950 Indian Rupees) Reporting by Manvi Pan and Hritam Mukerjee from Bengaluru. Editing by Sonia Cheema
(source: Reuters)
