In a letter to customers, the company said the availability of regasified LNG has been severely impacted due to recent international developments. It termed the situation a Force Majeure event under the provisions of its Gas Sales Agreement, stating that the circumstances are beyond its control, the report added.
The disruption follows a halt in LNG production by Qatar Energy after parts of its infrastructure were hit during the conflict, affecting operations and output. The development gains significance as Gujarat Gas sources nearly 70% of its gas requirement from imports, particularly from Qatar, making it vulnerable to supply disruptions.
The company also cautioned customers that if consumption exceeds the allocated quantity, gas supply will be suspended immediately without prior notice.
Gujarat Gas Q3 snapshot
The company reported a 5.6% QoQ decline in volumes for the December quarter, which was slightly better than market expectations of a 7% to 8% drop. On a sequential basis, revenue fell 3.2% to Rs 3,658 crore from Rs 3,781 crore. EBITDA remained largely flat at Rs 447 crore compared with Rs 448 crore in the previous quarter.
Net profit for the December quarter came in at Rs 267 crore, down 4.6% from Rs 280 crore reported in the September quarter.
Gujarat Gas recorded an 11% sequential increase in CNG volumes to 3.45 mmscmd during the quarter. In contrast, industrial volumes declined 19.7% from the previous quarter to 3.93 mmscmd.
Operating profit margin improved by 30 basis points on a sequential basis to 12.2%, compared with 11.9% in the September quarter.
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