GAIL, which is slated to announce the third quarter earning numbers on Wednesday, may split this dividend into two: a 90 percent or Rs 9 per share interim dividend and the balance in the final dividend at the end of the fiscal. (Agencies)
Officials said that the company had in the previous 2012-13 fiscal paid a total dividend of Rs 9.60 per share - Rs 4 per share interim dividend announced in February 20, last year and Rs 5.60 final dividend on September 7.
"GAIL will maintain the dividend payout at Rs 10 this fiscal," an official said. The company, which has a cash balance of Rs 1,700 crore, will pay the government Rs 700 crore in dividends this fiscal, almost unchanged from the previous year. The government holds 57.34 percent stake in GAIL.
Officials said that GAIL has planned a capital expenditure of Rs 3,105 crore in early part of 2014-15, mostly on laying new gas pipelines.
This compares to Rs 3,247 crore planned capex for second quarter current fiscal. For the full fiscal 2013-14, GAIL had planned a spending of Rs 7,511 crore but this is unlikely to be met because of regulatory hurdles delaying pipeline projects in Tamil Nadu and Kerala, officials said.
GAIL, which paid Rs 700 crore towards to subsidies diesel and cooking fuel in the first half of current fiscal, will not have to pay any more fuel subsidy in the remainder of the year.
"The Petroleum Ministry has conveyed that GAIL's share of subsidy will be capped at Rs 700 crore for the current fiscal. So, there will be no more subsidy payouts in 2013-14," an official said.
Oil and gas producers like ONGC and GAIL make up for a part of the losses that fuel retailers incur on selling diesel, domestic cooking gas and kerosene at government controlled rates. GAIL, having paid Rs 700 crore in first half, will not be required to pay any fuel subsidy in Q3 and Q4.
GAIL, which is slated to announce the third quarter earning numbers on Wednesday, may split this dividend into two: a 90 percent or Rs 9 per share interim dividend and the balance in the final dividend at the end of the fiscal.