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Highlights:
- Revenue Decline: Indus Gas reports a significant drop in revenues, operating profit, and profit before tax for the interim period.
- Gas Supply Disruption: Ongoing maintenance at the ultimate customer’s power plant continues to affect gas supply and revenue.
- Funding Plans: The Company plans to seek external and/or shareholder funding to support operations due to the current disruptions in gas sales.
Indus Gas Limited (LSE:INDI), an oil and gas exploration and development company, has reported its interim results for the six-month period ending 30 September 2024. The Company’s performance for the period reflects a decline in revenues, operating profit, and profit before tax compared to the previous year, with challenges in gas supply affecting its operations.
For the interim period, Indus Gas recorded adjusted revenues of US$ 2.34 million, down significantly from US$ 26.18 million in the same period of 2023. Both operating profit and profit before tax also showed a sharp decline, totaling US$ 1.24 million compared to US$ 22.61 million and US$ 22.63 million, respectively, for the interim period of 2023. The company has also continued to make provision for a notional deferred tax liability of US$ 0.61 million, a significant decrease from US$ 9.88 million in the prior period.
Gas production during the period continued from the SGL, SSF, and SSG fields, with all gas being sold to GAIL. However, as previously disclosed, GAIL has been taking a reduced quantity of gas since February 2024 due to maintenance on the gas turbine of the ultimate customer’s power plant. As of the current date, the disruption in gas supply continues due to ongoing maintenance at the plant’s turbine.
The company also announced that it will seek further external funding and/or shareholder funding in the near future, if necessary, to support operations amidst the current disruptions. The Company will provide an update regarding the extension of its Production Sharing Contract (PSC) when granted.
Regarding the Domestic gas pricing guidelines, the company noted that the gas sale price for the period ranged from a high of US$ 8.90 per MMBTU to a low of US$ 7.85 per MMBTU, in line with the revised pricing formula based on the monthly average of the Indian crude basket, as notified by the Petroleum Planning and Analysis Cell (PPAC).
