30th Dec 2020 08:14
(Alliance News) - Indus Gas Ltd on Wednesday reported a drop in interim profit on a decline in revenue due to challenges related to the pandemic.
For the six months to the end of September, the India-focused oil & gas firm said its pretax profit fell by 19% to USD21.2 million from USD26.1 million the year before, on revenue that declined by 16% year-on-year to USD23.2 million from USD27.7 million.
The company said in September that India's Petroleum & Natural Gas Regulatory Board had re-invited bids for laying of a gas pipeline for the evacuation of gas from the RJ-ON/6 block in order to minimise the pipeline tariff.
On Wednesday, Indus said that the transportation tariff proposed in the first round was "very high", leading to confidence of an opportunity to materially lower the transportation tariff in the next bidding round.
Discussions with several parties are ongoing, and achieving a successful outcome remains the company's key strategic priority.
"While the pandemic has presented unprecedented operational challenges the company remains focused on executing our strategy to maximize value for all of our stakeholders. The Indian government's commitment to increase the share of gas in the energy mix from the current 6.3% to 15% by 2030 will be backed by major infrastructure investment to develop the gas pipeline network and connectivity to the national grid throughout the country. The company remains very well positioned to play its part in this transition to an economy powered by a growing proportion of gas," said Chair Peter Cockburn.
By Dayo Laniyan; [email protected]
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