EOGEPL net jumps 12% as gas output doubles in Q1

NEW DELHI: Essar Oil and Gas Exploration and Production Ltd (EOGEPL) on Thursday reported a 12% increase in the June quarter net profit on the back of record gas sales.
India’s largest unconventional gas producer posted a net profit of Rs 81 crore on a revenue of Rs 190 crore and EBITDA of Rs 150 crore in the first quarter of 2023-24 financial year, the company said in a statement.
"PAT for the quarter increased by 12% year-on-year (yoy) backed by improvement in sales volume. However, quarterly revenue and EBITDA was lower by 14% from a year ago due to a 24% drop in crude prices, which was offset by an 8.5% rise in sales volume,” the company said, adding it notched highest quarterly sales volume of more than 2 billion cubic feet (bcf).
EBITDA margins saw an improvement of 380 basis points, reaching 79.4 per cent due to constant cost optimisation and reduced internal consumption.
EOGEPL's Raniganj coal bed methane gas project in West Bengal is now seamlessly connected to the national gas grid after the completion of the state-run GAIL’s Urja Ganga pipeline, granting it unrestricted access to the eastern market and unlocking its growth potential.
"Since the commissioning of the Urja Ganga pipeline, we had a single vision of unlocking the full potential of the block, and the team has consistently delivered strong operating performance sequentially. EOGEPL is right on track to create India's largest unconventional gas platform, contributing to India's vision of becoming a gas-based economy by the next decade," company chief executive Pankaj Kalra said.
EOGEPL has more than trebled its gas production after the commissioning of the Urja Ganga pipeline with the availability of 100% gas offtake further buoyed by continued tailwinds in global gas prices.