Gail(india)gdr Regulatory News (GAID)

15 May 2007 18:05

GAIL (India) Limited15 May 2007 Press Releases(New Delhi, 9th May, 2007) GAIL records Net Profit of Rs. 2,387 crore in FY 2006-07 GAIL records Turnover of Rs. 16,047 crore in FY 2006-07 Quarter on Quarter PAT zooms up by 67% in Q4 2006-07 New Delhi, May 9, 2007: GAIL (India) Limited has recorded sustained performancein all key physical as well as financial parameters in the Financial Year 2006-07. According to the audited figures, Turnover (excluding internal consumptionand net of excise duty) in the year 2006-07 went up by 11 per cent to Rs. 16,047crore from Rs. 14,459 crore in FY 2005-06. The Profit After Tax during the year2006-07 was Rs. 2,387 crore as against Rs. 2,310 crore in the previous year. GAIL is one of the leading public enterprises with a consistently excellentfinancial track record. Turnover and Net Profits during the last ten years hasshown a compounded annual growth rate of 14 per cent. The PAT of Rs. 2, 387 crore was achieved despite 40 per cent increase in subsidysharing in domestic LPG and PDS kerosene from Rs. 1,064 crore in 2005-06 to Rs.1, 488 crore in 2006-07 and increased cost of operations owing to the floods,the increased cost of natural gas as feedstock for processing plants and fuelfor compressors. Without the subsidy element, the PBT would have increased by 33per cent to Rs. 4, 348 crore and PAT would have increased by 49 percent to Rs.3, 444 crore. Top line growth is a cumulative result of the overall increase in the naturalgas business, polymer sales and also in LPG transmission. The increase inturnover was achieved despite the fact that gas supply was affected for aboutone month in the second quarter during the financial year 2006-07 due to floodsin Hazira, Gujarat. During the year 2006-07, consolidated financial statements of GAIL,incorporating the accounts of subsidiary, JVs and associated companies have alsobeen prepared. Based on the consolidated financial statements, the totalearnings of GAIL were Rs. 17, 176 crore. The consolidated Gross Margin was Rs 3,804 crore, the Profit Before Tax was Rs. 3, 069 crore and Profit After Tax wasRs. 2, 545 crore. The Earning Per Share (EPS) increased to Rs. 28.22 per share in the year 2006-07as against Rs. 27.32 per share in the year 2005-06. The EPS as per consolidatedstatement was Rs. 30.10 per share, while book value has increased from Rs.116.77 to Rs. 133.18 per share. The contingent liabilities have come down to Rs. 3, 783 crore as on 31st March2007 as compared to Rs. 9, 934 crore at the end of last year, a decline of 62%.The Net Profit of Q4 2006-07 is Rs 681 crore as against Rs 409 crore during Q4of 2005-06 registering a growth of 67%. During the year 2006-07, fixed assets to the tune of Rs. 463 crore werecapitalized. The Board of Directors has recommended payment of total dividend at the rate of100 per cent on the paid-up share capital of the company for the financial year2006-07, which includes interim dividend at the rate of 55 per cent and specialinterim dividend of 25 percent on the paid-up share capital, already declaredand paid. Natural Gas Natural Gas continues to constitute the core business of GAIL. During the year2006-07, Gas Sales have increased marginally to 67.83 MMSCMD from 67.63 MMSCMDin the previous year. The Gas Transmission during the year was 77.28 MMSCMD ascompared to 78.87 MMSCMD in the previous financial year. Third Party Access (TPA) for gas pipeline is already in place and the Dahej -Vijaipur pipeline system is already being used by IOCL and BPCL right up toDelhi. GAIL has put in place ship or pay commitment for new pipeline projects.To bring synergy, GAIL has adopted a Gas Management System (GMS) to handlemultiple sources of supply and delivery of gas in a co-mingled form and forsmooth interface between shippers, customers, transporters and suppliers. LPG and other Liquid Hydrocarbons In 2006-07, total Liquid Hydrocarbon production including LPG was over 1.343million metric tones as compared to previous year's production of 1.325 millionMT. The company produced 1.03 million MT of LPG during the year against aproduction of 1.04 million MT in the last fiscal. The Propane production was178752 MT - an increase of 3 per cent over the previous year's production of173920 MT. The Pentane production was up by 37 per cent to 72827 MT during theyear 2006-07 as against 53346 MT produced in the year 2005-06. The Propane sales increased by 4 per cent to 179164 MT from 172525 MT in theprevious year, whereas the Pentane sales up 34 per cent to 71542 MT from 53457MT in the previous year. LPG Pipeline LPG transmission through LPG pipelines was 2.491 million MT in the year 2006-07as against 2.229 million MT in 2005-2006, thus recording an increase of 12 percent. Petrochemicals During 2006-2007, the production of polymer has increased by 14 per centregistering 3.54 lakh MT as against 3.12 lakh MT in the previous year. Thepolymer sales increased by 11 per cent to 3.47 lakh MT from 3.12 lakh MT in thelast financial year. GAIL is expanding the capacity of the Pata Petrochemical plant to 410,000 TPAfrom the present 310,000 TPA and the project is expected to be completed by thefirst quarter of FY 2007-08. Telecom Leveraging on its pipeline network, GAIL has built up a strong OFC network forleasing of bandwidth as a carriers' carrier. GAIL's telecom business unit -'GAILTEL' has approximately 12,500 km network, offering highly dependablebandwidth for telecom service providers across 175 locations in the states ofRajasthan, Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, Andhra Pradesh,Tamil Nadu, Karnataka, Kerala, Haryana and Delhi. GAILTEL has been the firstalternate service provider to become operational in the Delhi-Mumbai route,first to implement DWDM technology in India and the first carrier to provideservice level agreement. Major achievements completed during FY 2006-07 During the year 2006-07, GAIL completed Jagoti-Pithampur, Thulendi - Phulpur,Kailaras - Malanpur and Vijaipur - Kota Natural Gas Pipeline projects. During the year 2006-07, a Joint Venture (JV) Company Avantika Gas Limited, withHPCL for city gas projects in Madhya Pradesh and another JV, Maharashtra NaturalGas Limited with BPCL for city gas projects in Pune was incorporated. Brahmaputra Cracker and Polymer Limited (BCPL), JV of GAIL with Government ofAssam, Oil India Limited and Numaligarh Refinery Limited for setting up 2,80,000MT Gas Cracker Project at Lepetkata, District Dibrugarh, Assam at an investmentof Rs. 5460 crore. In a move towards integration along the energy chain and for sourcing supply,GAIL has entered into the area of Exploration & Production. Currently, thecompany is involved in oil and gas exploration activities over an acreage of1,96,337 sq. km. During the year 2006-07, GAIL consortium was awarded 15 oil andgas exploration blocks under NELP VI bidding. GAIL consortium was also awarded 3Coal Bed Methane Blocks under CBM III round of bidding. The Company was alsoawarded Block no. 56 in Oman and Block no. A-7 in Myanmar. During the year 2006-07, test production of oil from Cambay basin block CB-ONN-2000/1, having equal participation by GAIL and GSPC, commenced. Natural Gas transmission continues to be the core competency of GAIL. During theyear 2006-07, GAIL received approval from the Ministry of Petroleum and NaturalGas (MoPNG) for five new natural gas pipelines in the country. The pipelines forwhich approval for EOI has been granted are: (1) Dadri - Bawana - Nangalpipeline, (2) Chainsa - Gurgaon - Jhajjhar - Hissar pipeline, (3) Jagdishpur -Haldia pipeline, (4) Dabhol - Bangalore pipeline and (5) Kochi - Kanjirkkod -Bangalore / Mangalore pipeline. In addition to these, GAIL will be augmentingthe capacities of 3 existing pipelines, viz. Dahej - Vijaipur pipeline, Vijaipur- Dadri pipeline, Vijaipur - Auraiya - Jagdishpur pipeline. The total length ofthe new pipelines will be around 5000 km and the estimated investment on thesewould be Rs. 18,000 crore. When these pipelines are commissioned, the capacityis expected to increase from 130 MMSCMD at present to around 280 MMSCMD. During the year 2006-07, GAIL signed a Memorandum of Understanding (MoU) withReliance Industries Limited (RIL) for cooperation in the gas sector includingtransportation of natural gas from the various gas sources of RIL in KrishnaGodavari basin through an integrated pipeline network. GAIL also initialed a MoUwith ONGC for transportation of the gas from ONGC fields on the east coast. GAIL(India) Limited and Shell India agreed to sharing of GAIL's pipelineinterconnectivity with Hazira terminal for Gas supplies in the country. The twocompanies initialed a broad framework of agreement for cooperation which willhelp evacuation of regassified LNG from Shell's Hazira terminal for supplies toGAIL's customers. GAIL's pipeline network is already connected with Shell'sHazira LNG terminal. GAIL and ONGC signed a Gas Supply Agreement for gassupplies from ONGC oil and gas fields for a period of 15 years. Capex plans GAIL plans to invest Rs. 2744 crore during FY 2007-08. Of these, Rs. 1855 crorewill be invested in pipeline projects, Rs. 500 crore will be invested in E & Pprojects, Rs. 146 crore will be invested in Petrochemicals, Rs. 94 crore will beinvested in business development and the rest will be invested in projectsrelated to City Gas, Telecom, Coal Gasification etc. • For Hindi Version Click Here http://www.gailonline.com/gailnewsite/mediacenter/pdf/pressrelease_hindi_may9_07.pdf • Presentation on Financial results http://www.gailonline.com/gailnewsite/mediacenter/pdf/pressrelease_may9_2.pdf • Presentation on future plans http://www.gailonline.com/gailnewsite/mediacenter/pdf/pressrelease_may9_1.pdf This information is provided by RNS The company news service from the London Stock Exchange