India's Adani Total Gas posts Q3 profit fall on higher gas procurement charges

Adani Total Gas

27/01/2025 09:50

Jan 27 (Reuters) - India's Adani Total Gas  ADAG.NS 
reported a 20% fall in third-quarter profit on Monday, hurt by
higher gas purchase costs following lower supply from the
government.
    The Adani group company's consolidated profit fell 20% to
1.42 billion rupees ($16.4 million) in the three months ended
Dec. 31, from a year ago. 
The government had cut cheaper gas supplies to city gas
distributors like Adani Total Gas in October and November,
citing lower output, but later restored in January. 
    The company had to bridge the shortfall with costlier
purchases of natural gas to ensure an uninterrupted supply of
compressed natural gas (CNG) to end consumers, Adani Total Gas
said in a statement.
    The cost of procuring natural gas surged 20% year-on-year,
Adani Total Gas said. 
The gas distributor's CNG sales, which account for over half of
its total sales volume, rose 19% during the quarter, while sales
volume at the piped natural gas (PNG) segment increased 8%.
Revenue rose 12.6% to 14.01 billion rupees driven by higher
sales volume.
    The increase in natural gas supplies from the government
from January should have a positive impact in the fourth
quarter, the company said. 
This is the first quarterly results since the company's JV
partner TotalEnergies SE  TTEF.PA  paused new investments into
the Adani group of companies after a U.S. federal indictment
against chairman Gautam Adani and others. The group has denied
the charges and called them "baseless."
    Shares of Adani Total Gas fell 3% after the results and have
lost about 16% in January so far. 
  
     
    ($1 = 86.3900 Indian rupees)

(Reporting by Sethuraman NR; Editing by Eileen Soreng)
((mailto:Sethuraman.NR@thomsonreuters.com; (+91 9945291420);
Reuters Messaging:
rm://nallur.sethuraman.thomsonreuters.com@reuters.net/))