Shares of GAIL India Ltd. fell the most in over two weeks as the shortage of liquefied natural gas overshadowed its strong first-quarter earnings.
The company reported 91% year-on-year surge in net profit for the quarter ended June on Thursday.
The supply deficit comes as a former unit of Gazprom PJSC missed shipments.
GAIL has a total portfolio of 14 MMTPA of LNG. Gazprom was supposed to supply 2.5 MMBTU of LNG, which comes to almost 36 cargoes in the calendar year, Finance Director Rakesh Kumar Jain said in a post-earnings call. “There has been certainly supply disruptions and it has happened since late May 2022”. So far, Gazprom has supplied eight cargos.
“In order to secure supply Europe, they (Gazprom) are not certain above supplying LNG under this contract,” Jain said.
So, GAIL, according to him, has started rationing gas, cutting supplies to certain clients.
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