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Indus Gas reports decline in interim profits amid supply disruptions

Published 12/24/2024, 07:34 PM

LONDON - Indus Gas Limited (AIM: INDI), an oil and gas company focused on exploration and development, has released its amended half-year financial results, correcting previously omitted liability tables. The interim report for the six-month period ending September 30, 2024, shows a notable decrease in revenue and profits compared to the previous year.

The company reported adjusted revenues of US$ 2.34 million, a sharp decline from US$ 26.18 million in the same period of 2023. Operating profit and profit before tax also fell to US$ 1.24 million each, from US$ 22.61 million and US$ 22.63 million, respectively, during the interim of 2023.

Indus continues to provision for a notional deferred tax liability of US$ 0.61 million, which is significantly lower than the US$ 9.88 million accounted for in the interim period of 2023.

The company's gas production comes from the SGL, SSF, and SSG fields, with all output currently sold to GAIL, the state-owned gas authority in India. However, since February 2024, there has been a reduction in gas off-take by GAIL due to maintenance on a gas turbine at the ultimate customer's power plant.

As of today, Indus still experiences disruptions in the quantity of gas supplied due to the ongoing maintenance issues. The company anticipates that it may seek additional external or shareholder funding in the near future if required.

Under revised domestic gas pricing guidelines effective from April 8, 2023, the sale price of gas is set at 10% of the monthly average of the Indian crude basket, as notified by PPAC on a monthly basis. During the period ending September 2024, the gas sale price varied from a high of US$ 8.90 per MMBTU to a low of US$ 7.85 per MMBTU.

Jonathan Keeling, Chairman of Indus Gas, expressed the company's efforts to increase gas off-take with GAIL through the operator.

This financial update is based on a press release statement from Indus Gas Limited.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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