Gujarat State Petronet (GSPL) Q4 06/07 earnings summary

Executive summary

• FY2006-07 turnover rose 25% YoY to Rs.335.02 crore, EBITDA increased 44% to Rs.285.17 crore, and PAT advanced 91% to Rs.89.38 crore.

• Pipeline network expanded from 510 km to 1,130 km; 620.54 km of pipelines were commissioned, with 100% grid availability and accident-free operations reported.

• The Board recommended a 5% dividend while prioritizing funding for Phase III pipeline expansion.

Financial highlights

• Total income was Rs.335.02 crore versus Rs.267.93 crore in FY2005-06; gas transportation income was Rs.317.56 crore versus Rs.263.47 crore.

• EBITDA was Rs.285.17 crore versus Rs.198.62 crore; profit before tax was Rs.137.26 crore versus Rs.78.40 crore.

• PAT was Rs.89.38 crore versus Rs.46.68 crore; proposed dividend was Rs.27.14 crore, with dividend tax provision of Rs.4.61 crore.

Outlook and guidance

• Phase III pipeline projects were estimated to cost Rs.2,100 crore, to be funded through a mix of debt, equity and internal accruals.

• Priority projects included Rajkot–Vadinar (110 km) and Bhadbhut–Gana (109 km), with EPC contracts awarded; Morbi–Mundra, Baroda–Halol and Limbdi–Pipavav were future possibilities.

• Demand was expected to be driven by power, fertilizer, industrial clusters and domestic distribution; gas supply from KG Basin discoveries was expected to begin around 2008.