Petronet LNG net profit up 9% Y-o-Y in Q2 FY24

State-run Petronet LNG (PLL) on Monday reported a 9 per cent Y-o-Y growth in its consolidated net profit at Rs 856 crore for the July-September quarter in FY24 aided by optimisation measures and higher capacity utilisation at the Dahej terminal.

The country’s largest liquefied natural gas (LNG) importer’s net profit was higher by 5 per cent on a sequential basis.

The CPSU’s consolidated total income was higher in Q2 FY24 at ₹12,686 crore compared to ₹11,801 crore in Q1 FY24, but was lower on an annual basis (₹16,074 crore in Q2 FY23).

Petronet LNG MD & CEO A K Singh told reporters that the robust financial performance was achieved due to efficiency in operations and higher capacity utilisation of the Dahej Terminal, that remained consistently above 90 per cent in the current quarter and half year, taking huge leap from the utilisation level in FY23 that was below 80 per cent.

The company’s board also approved setting up of a petrochemicals project of 750 kilo tonnes per annum (KTPA) of Propane Dehydrogenation Plant (PDH) and 500 KTPA of Polypropylene (PP) plant including propane and ethane handling facility at Dahej (Gujarat).

The board also declared a special interim dividend of ₹7 per equity share.

Operational metrics

During Q2 FY24, the Dahej terminal processed 210 trillion British thermal units (TBTU) of LNG as against 182 TBTU a year-ago and 217 TBTU in Q1 FY23.

The overall LNG volume processed in Q2 FY24 was 223 TBTU, as against the LNG volume processed in the corresponding and previous quarters, which stood at 192 TBTU and 230 TBTU, respectively.

During H1 FY24, Dahej terminal processed 427 TBTU of LNG as against 378 TBTU in H1 FY23. The overall LNG volume processed in h1 FY24 was 453 TBTU, as against the LNG volume processed in the corresponding half year, which stood at 400 TBTU.

Pursuant to the relevant provision under long term regasification contracts entered by the Company, income towards “Use or Pay charges” of Rs 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/ advance adjusted is yet to be received. The management is confident that the payment would be recovered in due course, being a contractual obligation.

Petrochemicals foray

In a move to diversify its revenue streams, Petronet LNG will set up the petrochemicals complex at Dahej, which will enhance its revenue through sale of Poly-Propylene, Propylene, Propane, Hydrogen and Ethane.

“Estimated cost of the project is ₹20,685 crore with a variation of + 10 per cent,” the company said in a regulatory filing on the BSE.

The project would also benefit from utilising ‘ColdEnergy’ of PLL’s existing Dahej LNG terminal making this project energy-efficient. PLL plans to develop 25 hectares of green belt area in the region, it added.

“Besides significantly improving the topline and bottom line of the company, the project aims to enhance the self-efficiency of the country in the field of petrochemicals. The project would also facilitate a noteworthy socio-economic upliftment in the region through its huge planned investment and by creating a significant opportunity of direct and by creating a significant opportunity of direct and indirect employment,” it added.

COMMENT NOW