Latest News | EOGEPL Posts 12 Pc Rise in Q1 Net Profit as Sales Zoom to Record Levels

New Delhi, Aug 31 (PTI) Essar Oil and Gas Exploration and Production Ltd (EOGEPL), a leader in the unconventional hydrocarbon space, on Thursday reported a 12 per cent rise in the June quarter net profit after gas sales zoomed to record levels.

The firm 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 FY24 (April 2023 to March 2024 financial year), it said in a statement.

Also Read | G20 Summit 2023 in Delhi: From Date to Theme and Objectives to Significance, Here's All You Need to Know as India Presides Over Group of 20 Conference.

"The PAT for the quarter increased by 12 per cent year-on-year (yoy) backed by improvement in sales volume. However, quarterly revenue and EBITDA was lower by 14 per cent yoy due to softening of crude oil prices by 24 per cent which was cushioned by an increase in sales volume by 8.5 per cent," it said.

In the first quarter, the company reported its highest quarterly sales volume of 2.18 billion cubic feet, growing 8.5 per cent compared to the same quarter last year.

Also Read | US Military Plans to Unleash Thousands of Autonomous War Robots Over Next Two Years.

Its EBITDA margins saw an improvement of 380 basis points, reaching 79.4 per cent due to constant cost optimisation and reduced internal consumption.

Post the completion of the Urja Ganga Pipeline that connects eastern India to the national gas gird, EOGEPL's Raniganj gas project is now seamlessly connected to the national grid, granting it unrestricted access to the market and unlocking its growth potential.

The firm operates a coal-bed methane (CBM) block in Raniganj in West Bengal.

Commenting on the performance, EOGEPL chief executive Pankaj Kalra said, "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."

EOGEPL delivered a strong operational performance by more than tripling its gas production to over 2.5 bcf (billion cubic feet) after the commissioning of the Urja Ganga Pipeline with the availability of 100 per cent gas offtake further buoyed by continued tailwinds in global gas prices.

It is currently operating around 350 wells in the block and has adopted a systematic approach of well revival through the adaptation of world-class technology and stimulation techniques, including re-fracs, microbial treatment and well automation, to enhance gas production from the existing wells, the statement said.

The company has roped in globally renowned service providers and technical consultants to roll out a phased growth programme to achieve these objectives. The programme includes drilling new directional and horizontal wells and also expedites the development of the CBM area within the Raniganj block.

The company also partnered with Sensia for the digitalisation of oil and gas field operations to enhance operational efficiencies. The collaboration aims to unify measurement systems, optimise decision-making and enable remote control of critical parameters across EOGEPL's wells, facilities and customer interface.

"EOGEPL continues its robust momentum to maintain a leadership position in the unconventional space with a clear road map to double its CBM reserve base and increase production from the block to over 3 million standard cubic metres per day in the coming years," it added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)