29th Sep 2020 10:28
(Alliance News) - Indus Gas Ltd on Tuesday said profit dipped slightly in its most recently ended financial year after swinging to a loss on foreign exchange, combined with lower revenue.
The company is engaged in oil and gas exploration and development in Block RJ-ON/6 in Rajasthan, India. Indus owns a 90% participating interest in the block.
For its financial year ended March 31, Indus reported a USD53.1 million pretax profit, down 1.5% from USD53.9 million.
This came in part from a 4.3% reduction in revenue to USD58.0 million from USD60.6 million - though somewhat offset by a 37% drop in cost of sales to USD3.9 million from USD6.2 million. This meant that gross profit was only 0.6% lower at USD54.1 million from USD54.4 million.
Also hurting profit was a swing to a USD260,754 loss on foreign current exchange from a USD612,594 gain the prior year.
Chair Peter Cockburn said: "The directors have taken a conservative approach whilst assessing the impact of the coronavirus pandemic. This prudent approach means results for this financial year are anticipated to be slightly lower than those achieved in the year ended March 2020. The board continues to monitor the situation and anticipates results will return to previous levels once the worst of the pandemic is over and the site returns to unrestricted operations.
"The management team 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 prioritize the increase of domestic gas production thereby reducing the dependence on expensive imported energy and enhancing energy security."
Shares in Indus were untraded on Tuesday morning in London, having last closed at 198.50 pence.
By Anna Farley; [email protected]
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