High LNG prices pulls down Petronet LNG’s Q4 & FY23 net profit

State-run Petronet LNG on Wednesday reported a 22 per cent y-o-y decline in its consolidated net profit at ₹619 crore in the January-March quarter of FY23 as high international prices of LNG impacted sales.

On a sequential basis, the decline in its net profit was steeper at 48 per cent from ₹1,197 crore in Q3 FY23.

However, the consolidated total income of India’s largest liquefied natural gas (LNG) importer rose 25 per cent to ₹14,005 crore in the March quarter of the last financial year. On a q-o-q basis, the income declined by 12 per cent from ₹15,956 crore.

For the entire FY23, Petronet LNG’s consolidated net profit fell 3 per cent y-o-y to ₹3,326 crore, while the consolidated total income was higher by 39 per cent y-o-y to ₹60,422 crore.

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Optimisation in operation

The company was able to achieve robust financial results despite high LNG prices, owing to optimisation in its operation, Petronet LNG MD & CEO said in an post-result interaction with journalists.

“The overall LNG volume processed by the company in the current quarter (Q4 FY23) was 185 trillion British thermal units (tBtu), as against the LNG volume processed in the previous (Q3 FY23) and corresponding quarters (Q4 FY22), which stood at 167 tBtu and 190 tBtu, respectively.

• Also read:Softening LNG prices signal better Q4 performance for Petronet LNG 

During the March FY23 quarter, the Dahej terminal processed 172 tBtu of LNG as against 154 tBtu during the December FY23 quarter and 178 tBtu during the corresponding quarter ended March 31, 2022, it added.

During FY23, Dahej terminal processed 704 tBtu of LNG as against 793 tBtu processed during FY22. The overall LNG volume processed by the company stood at 752 tBtu as against 847 tBtu.

“Due to foreign exchange volatility, the lease liability has an accounting impact of foreign exchange loss amounting to ₹258 crore in FY23 (as against ₹91 crore in FY22), as per the provisions of the relevant Indian Accounting Standards (Ind AS),” the company said.

Use and pay charges

On ‘use and pay charges’, the company in its results filing with the stock exchange said, “Pursuant to the relevant provision under long term regasification contracts entered by the company, income towards “Use or Pay charges” of ₹848.92 crore in FY23 for calendar year 2022 (₹415.91 crore in FY22 for calendar year 2021) has been recognised on account of lower capacity utilisation by its customers.”

The balance confirmation against payment due or advance adjusted is yet to be received. The management is confident that the payment would be recovered in due course, being a contractual obligation, it added.

The company’s board of directors have recommended a final dividend of ₹3 per share.

• Also read: Petronet LNG to set up floating LNG terminal at Gopalpur

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