27th Sep 2019 13:13
(Alliance News) - Indus Gas PLC on Friday said its profit rose in its most recent financial year, having swung to a gain on foreign exchange.
The oil & gas firm, which has assets in India, posted a USD53.9 million pretax profit for its financial year ended March 31, up 13% from USD47.8 million the year before.
This was largely the result of a swing to a USD612,594 net gain on foreign exchange, reversing a USD4.1 million loss the year before.
Another factor in Indus's profit rise was cost of sales, which fell 18% to USD6.2 million from USD7.6 million. As revenue stayed flat at USD60.6 million, this cost of sales reduction caused gross profit to rise 2.6% to USD54.4 million from USD53.0 millon.
Indus is currently developing and exploring Block RJ-ON/6 in Rajasthan, where it has a 90% participating interest in the block.
Chair Peter Cockburn said: "This has been another notable period of operational progress for the group. The approval of the Field Development Plans combined our application for a pipeline to evacuate gas from the RJ-ON/6 block being lodged with the [Petroleum & Natural Gas Regulatory Board], represented a major milestone achieved in the period under review.
"The company's strong operational and financial performance is highlighted by another year of improved profit generation and the board continues to anticipate a substantial increase in revenues once the additional gas supplies commence through the new pipeline.
"The board would like to thank their employees, shareholders, bankers and all other stakeholders for their loyalty. The management will continue to focus on the execution of the company's long-term strategy of achieving both growth in reserves and commercial production. The Indian government continues to prioritise the increase of domestic gas production thereby reducing the dependence on expensive imported energy."
By Anna Farley; [email protected]
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