Low LNG prices hit GSPC revenue

Vol 20, PW 7 (15 Dec 16) News in Brief

Low spot LNG prices through much of 2016 have severely hit GSPC's gas trading business.

PETROWATCH learns GSPC sold more R-LNG in the first six months of this fiscal but its overall income from gas trading reduced by Rs786.35cr ($118.19m). GSPC sold 85.31m mmbtu between April 1 to September 30, 2016 against 77.12m mmbtu in the same period last year.

"We sold 8.18m mmbtu more in the first six months of this year but our revenue decreased by 15.18%," GSPC tells us. One piece of good news is that overall net profit of Rs374.03cr ($56.22m) generated by GSPC from April 1 to September 30 is a slight recovery from the Rs369.55cr ($55.54m) loss it generated in the same period last year.

"That was an exceptional year!" adds GSPC. A huge Rs605.17cr ($90.96m) in exploration costs were written off last year.

In the first half of this year just Rs33.01cr ($4.96m) was written off. GSPC supplies R-LNG to power, fertiliser and other industries in Gujarat, Maharashtra, Rajasthan Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Punjab and Haryana.