Shares of Swan Energy surged as much as 8 percent on September 26 due to a spurt in volume. So far in the day, over 71 lakh shares of the company changed hands on BSE and NSE combined, compared to the one-month trading volume of 13 lakh shares.
At 2:41 pm, Swan Energy shares were trading 4.7 percent higher at Rs 594.25 on NSE. So far this year, the stock has gained just 16 percent, compared to an 18 percent rise in benchmark Nifty. In the last one year, the counter has rallied 100 percent, doubling investors' capital. In comparison, Nifty gained 30 percent during this period.
Earlier the company informed that it is set to sell its stake in a floating liquefied natural gas (LNG) terminal to Turkey’s state-run Botas for $399 million. The Mumbai-based company disclosed that the deal is expected to be finalized within the next six months, pending approval from both shareholders and regulatory authorities.
The floating storage and regasification unit (FSRU), known as Vasant 1, has a capacity of 180,000 cubic meters.
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Swan Energy, through its subsidiary Triumph Offshore Pvt., owns a 51 percent stake in the unit, while the remaining 49 percent is controlled by Indian fertilizer giant IFFCO. It is currently unclear whether IFFCO plans to sell its portion of the unit as well, as spokespeople from both companies have not yet provided comments on this matter.
The terminal was initially intended to commence operations at Jafrabad port on India’s west coast during the 2019-2020 period. However, its commissioning faced setbacks due to delays in port facility construction, exacerbated by the COVID-19 pandemic and a cyclone that struck in 2022, as detailed in Swan Energy’s annual reports.
Despite these delays, the FSRU was delivered by Hyundai Heavy Industries Shipyard in September 2020 and has been chartered to Botas since January 2023. The sale of Swan Energy's stake in the floating LNG terminal reflects ongoing shifts in the global energy landscape and highlights the challenges facing LNG infrastructure in India.
Swan Energy Ltd.'s net profit jumped 85 percent in the first quarter of the current financial year (Q1FY25). The petrochemical firm posted a profit of Rs 267.7 crore for the quarter ended June, compared to Rs 144.8 crore in the same quarter of the previous fiscal.
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