Shares of India’s largest Natural Gas company gained 3% to a 52-week high price of ₹177.10 per share after it signed an import deal with a UAE firm to buy 0.5 MMTPA, LNG.
Gail India Limited is a large-cap company with a Market capitalization of ₹1,15,458 crores. At 1:10 p.m., the company shares were trading at ₹174.80 a share, an increase of 1.81 percent from the previous stock price.
GAIL (India) Limited signed a long-term LNG purchase agreement for the purchase of around 0.5 million tonnes per annum (MMTPA) LNG from ADNOC Gas.
This is under an MoU dated October 30, 2022, between GAIL and Abu Dhabi National Oil Company (ADNOC), wherein the two entities to explore opportunities, including the purchase of LNG by GAIL from ADNOC for a tenure ranging from short-term to medium and long-term”, the company said in a statement.
This significant development between GAIL and ADNOC will reinforce the robust cultural and economic bonds between India and the United Arab Emirates (UAE). Under this agreement, the delivery of LNG will commence from 2026 onwards for 10 years, across India.
This arrangement is believed to further aid in India’s rising energy security requirements and, simultaneously, also fuel GAIL’s strategic growth objectives to cater to its downstream customers in the rapidly evolving Natural Gas landscape of the country. The company reported in its exchange filing.
Gail Ltd’s revenue has slightly declined by 3.3% yearly, from ₹35,885 crores in Q3FY23 to ₹34,698 crores in Q3FY24. During the same time frame, net profit jumped by 702% from ₹398 crores to ₹3,193 crore.
In the recent fiscal year, the company reported a return on capital employed at 7.10 percent and a return on equity at 8.64 percent. Similarly, the Company reported a net profit margin of 2.80 percent.
The company’s shares have delivered returns of 46 percent in six months and 84 percent in a year.
GAIL (India) Ltd is engaged in natural gas exploration and production, processing, transmission, distribution and marketing, and related services. The company has diversified into petrochemicals, telecoms, and liquid hydrocarbons.
In the recent fiscal year, the company received 76.5% revenue from Natural gas trading/marketing segment, followed by 7.5% from petrochemicals – 7.5%,7.5% from Natural gas transmission, and 5% from LPG & other liquid hydrocarbon segment.
The company has over 70% market share in natural gas transmission in India as well as contributes 55% of natural gas sold in India.
Written by Omkar Chitnis
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