GAIL’s weaker EBIT highlights US LNG price risks: Fitch Ratings
NEW DELHI : State-owned gas utility GAIL India Ltd’s 82 per cent plunge in pre-tax profit (EBIT) to ₹480 crore in the first quarter of the financial year ending March 2021 reflects price risks under the firm’s long-term Henry Hub (HH)-linked LNG contracts from the US, Fitch Ratings said on Monday.
GAIL’s regulated gas transmission segment was the least affected by the coronavirus pandemic-related lockdowns and helped generate an overall positive EBIT margin over the quarter, it said.
India’s largest gas marketing and transportation company had a negative EBIT of ₹610 crore in natural gas marketing segement in Q1, “largely driven by losses in HH-linked US liquefied natural gas (LNG) volumes,” Fitch said.
