Adani Total Gas obtained gas from IGX, and bilateral trades were completed. According to YES Securities, Adani Total Gas took advantage of falling LNG prices as well.
Adani Total Gas Ltd shares fell nearly 1% in Wednesday trade after the Company group firm reported an 8% increase in consolidated profit to Rs 173 crore in the September quarter, compared to Rs 160 crore in the same quarter last year. Revenue from operations fell marginally to Rs 1,179 crore from Rs 1,135 crore year on year.
According to YES Securities, the Gautam Adani-led company’s profitability was driven by higher EBITDA spreads and peak CNG volumes. Adani Total Gas’ EBITDA spreads of Rs 13.2 per standard cubic meter (scm) were higher than Rs 12.5 per scm in the June quarter and Rs 11.8 per scm in the September quarter last year, according to the company.
However, the stock fell 0.77 percent to a low of Rs 560.45 on the BSE. According to YES Securities, the sequential increase in EBITDA spreads was due to improved gas sourcing.CNG sales share was at 64 percent against 65 percent/59 percent during Q1FY24/Q2FY23 due to weaker industrial PNG volumes on alternative fuel prices being lower, according to the report.
The company sourced gas from IGX and executed bilateral trades during the quarter, according to YES Securities, adding that Company also took advantage of falling LNG prices.
The company’s volumes were 2.29 mmscmd (vs. 2.18/2.08 mmscmd in Q1FY24/Q2FY23), with CNG volumes at 1.48 mmscmd, supported by strong network expansions. PNG volumes were 0.82 mmscmd, which was lower than the peak of 1 mmscmd. Despite lower gas prices, industrial volumes were 0.59 mmscmd, impacted by weaker demand,” the brokerage said.
