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    Confident to see improvement in gas marketing segment in Q4, says GAIL

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    Confident to see improvement in gas marketing segment in Q4, says GAIL

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    GAIL reported earnings which were slightly lower than street expectations, the gas marketing segment remains under pressure this quarter, however, there is a strong improvement in the petrochemical segment. AK Tiwari, Director-Finance of GAIL discussed the outlook of the company.

    GAIL reported earnings which were slightly lower than street expectations, the gas marketing segment remains under pressure this quarter, however, there is a strong improvement in the petrochemical segment. AK Tiwari, Director-Finance of GAIL discussed the outlook of the company.
    The company’s physical performance in all the segments was up by 4-8 percent or so.
    “That resulted into our profitability turnover as well as profit before tax (PBT) and profit after tax (PAT. The gas marketing segment has an impact on the prices, the demand which was not there in Q1 due to pandemic. We have sold 2-3 mmscmd of gas in the spot market. We are quite confident that in Q4 our gas marketing segment will be better,” he told CNBC-TV18.
    He expects to see more demand in the country. “Prices will be stable because we have a long-term contract with them. So we are expecting that we are going to have better margins in the gas marketing as well as in the transmission segment also,” he said.
    In terms of capacity utilisation in the petrochemical segment, he mentioned, “Our plant has run more than 114 percent and we expect this trend to continue. We expect the prices to be better, so we are confident that petchem segment will be sustainable and will give good margins to us.”
    Kochi-Mangaluru pipeline is now operational and he expects this pipeline to add 2-2.5 mmscmd gas volumes in the coming six months. “Demand will pick-up and we expect in the coming 2-3 years, our demand will be around 5-7 mmscmd,” he mentioned.
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