GAIL's Profits Soar Post LNG Settlement with SEFE

State-owned gas utility GAIL (India) Ltd reported a 36% increment in net profit for the December quarter, thanks largely to a compensation from an overseas LNG supplier. The company recorded a net profit of Rs 3,867.38 crore against a backdrop of stable revenues from its core segments.

GAIL (India) Ltd, the state-owned gas utility, announced a robust 36% surge in its net profit for the December quarter, attributed to a one-off compensation from an international LNG supplier. The firm achieved a standalone net profit figure of Rs 3,867.38 crore.

Revenues from its primary business sectors—natural gas and LPG transportation, natural gas marketing, and petrochemicals—remained consistent with the previous year's figures. GAIL received a significant exceptional income of Rs 2,440.03 crore as compensation from a former Russian energy firm unit.

This financial gain resulted from a legal settlement with SEFE, after GAIL initiated arbitration due to non-delivery of contracted LNG cargoes. An interim dividend of Rs 6.50 per equity share was also declared by the board of directors.

(With inputs from agencies.)