Petronet LNG’s net slips 4% in Q2

State-run Petronet LNG on Thursday reported 4 per cent y-o-y decline in consolidated net profit at ₹786 crore for the July-September quarter this fiscal as high prices of liquefied natural gas (LNG) impacted volumes.

However, on a sequential basis, the net profit was up 8 per cent from ₹725 crore in Q1 FY23.

The company’s consolidated total income rose 48 per cent Y-o-Y to ₹16,074 crore in Q2 FY23. On a quarter-on-quarter basis, its income was up 12 per cent from ₹14,388 crore in Q1 FY23.

Petronet’s total expenses rose 54 per cent y-o-y to ₹15,087 crore in Q2 FY23. On a sequential basis, expenses were up 12 per cent. The company attributed this to reduced off-take by fertiliser firms due to maintenance shutdowns.

During the quarter ended September 30, 2022, the Dahej terminal processed 182 trillion British thermal units (TBTU) of LNG as against 196 TBTU during the previous quarter ended June 30, 2022 and 225 TBTU in the year-ago period, Petronet LNG said in a statement.

LNG volume

“The overall LNG volume processed by the company in the current quarter (Q2 FY23) was 192 TBTU, as against the LNG volume processed in the previous and corresponding quarters, which stood at 208 TBTU and 240 TBTU respectively,” it added.

The company was able to achieve robust financial results despite high LNG prices, owing to optimisation in its operation, the company said.

Due to foreign exchange volatility, the lease liability has an accounting impact of foreign exchange loss amounting to Rs 98 crore, as per the provisions of the relevant Indian Accounting Standards (Ind AS). Considering the performance, the Board of Directors approved a specia linterim dividend of ₹7 per share.

Pointing out that the Russia-Ukraine conflict propelled global LNG prices to record high, Petronet LNG CEO AK Singh said that rate correction has started in the last 10-15 days.

The rise in spot or current market liquefied natural gas (LNG) prices led to volume drop as users couldn’t afford higher rates.

Singh said the Petronet’s board has approved investment of ₹2,306 crore for setting up a floating-based LNG terminal of 4 million tonnes per annum (MTPA) at the Gopalpur Port (Odisha). It is expected to take 2-3 years to be completed. Petronet already operates a 17.5 MTPA capacity import terminal at Dahej and 5 MTPA at Kochi.

The company’s capacity utilisation at its Dahej terminal stood at 80 per cent in Q2 FY23 against 87 per cent in Q1 FY23.  

Petronet, which imports majority of the LNG on long-term contracts from Qatar and Australia, said the delivered price has been at $12.8 per million British thermal unit (mBtu) at Dahej and $13.16 at Kochi as against very high spot LNG prices.,LNG%20said%20in%20a%20statement.

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