Indus Gas profits fall as board pursues makes operational progress

28th Dec 2018 13:51

(Sharecast News) - India-focussed oil and gas exploration and development company Indus Gas issued its interim results for the six months ended 30 September on Friday, reporting a fall in adjusted revenues to $27.78m from $29.39m year-on-year.The AIM-traded firm said its operating profit slipped to $23.42m from $25.63m, and its profit before tax was down to $23.57m from $23.63m in the 2017 interim period.It said it had continued to make provision for a notional deferred tax liability of $5.85m in accordance with IFRS requirements, which was down from the $7.92m it reported a year ago.On the operational front, Indus explained that - as it announced in its latest full-year results - the Petroleum and Natural Gas Regulatory Board had invited bids for the laying of a gas pipeline of 580 kilometres, for the evacuation of gas from the RJ-ON/6 Block.It said the new pipeline would connect the gas processing facility at Langtala to Bhilwara.That would then connect to the national grid through the Gas Authority of India's Hazira-Vijaypur-Jagdishpur pipeline.The tender process was continuing to progress, and the board said a further update would be provided in due course.It also said that following the approval by the director-general of hydrocarbons and the Ministry of Petroleum and Natural Gas, of the integrated field development plan for the SSG and SSF area, detailed on-site planning was continuing for the delivery of the required production ramp once the pipeline was constructed.Planning was also said to be at an "advanced stage" in respect of the SGL area, and the revised field development plan for the enhancement of production from the current 33.5 mmscfd to an estimated 90 mmscfd."Indus has reached a very exciting point in its development as a result of management's consistent and successful execution of the company's long-term strategy of achieving both growth in reserves and commercial production," said chairman Peter Cockburn."The Indian economy continues to suffer from a shortage of domestically-sourced energy production and Indus remains well placed to contribute to addressing this deficit by working in partnership with the relevant authorities in India."