GEECL net profit dips 4.3 pc in Apr-Sept on lower price, sales

London-listed Great Eastern Energy Corp Ltd (GEECL) on Thursday posted a 4.34 percent fall in net profit in the first six months of the current financial year, on lower sales and price realization. Net profit stood at USD 3.74 million in the April-September 2019 period, compared with a profit after tax of USD 3.91 million in the corresponding period a year ago, the company said in a statement.

"The company's revenue impacted by a mild deceleration in industrial growth and the steel sector as a result of the general economic climate. However, a recent increase in consumer demand, as indicated by festival season turnover, suggests that economic conditions are improving," GEECL, whose main assets are coal-bed methane (CBM) blocks in India, said. Its revenue dipped to USD 19.21 million in the first half of the current financial year from USD 20.71 million a year ago.

Gas sales dropped to 10.91 million standard cubic feet per day (mmscfd) from 11.56 mmscfd last year. However, average coal-bed methane (CBM) production was up 17 percent at 16.60 mmscfd.

"Revenue and sales volume have largely remained resilient, despite a slowdown in the growth rate of the Indian economy in the current financial year. We have a focused plan of further optimizing production, as well as pursuing further exploration," GEECL Managing Director and Chief Executive Prashant Modi said. Price realization from the sale of CBM declined marginally to USD 10.40 per million British thermal units in April-September, compared to USD 10.60 realized a year ago.

GEECL is planning to commence initial shale gas exploration work in its West Bengal block by drilling core wells after approvals. "Subject to the results obtained and positive analysis from the core wells, the company intends to drill an optimum number of pilot production wells," it said.