Despite lower import volumes, Petronet LNG’s quarterly profit surged 33%, driven by trading gains and new infrastructure projects, signalling a strategic shift in its growth trajectory.
Petronet LNG said its first-quarter profit rose sharply even as volumes fell, with stronger trading activity and inventory gains helping offset the drag from weaker imports. According to the company’s earnings call summary published by GuruFocus, standalone profit before tax climbed 33% year on year to INR1,514 crore and profit after tax also rose 33% to INR1,133 crore. Consolidated first-quarter profit before tax and profit after tax reached record highs for the period at INR1,491 crore and INR1,137 crore.
The improvement came despite a decline in LNG handled during the quarter. Business Standard reported that Petronet processed 220 trillion BTUs in the June quarter, down from 262 trillion BTUs a year earlier, and said net profit fell 25% to INR850.58 crore as lower power demand and an early monsoon weighed on imports. Petronet’s management said the shortfall was partly offset by commercial gains, with trading profit of INR301 crore and inventory gains of INR193 crore supporting margins.
Petronet also said the expanded Dahej terminal is now operating on a 22.5 million metric tonnes a year basis after previously being rated at 17.5 million tonnes, with utilisation at about 66% on the higher capacity base. The Kochi terminal remained much weaker, running at 23.27%. Management said lower long-term Qatar cargoes had been replaced by spot volumes from other regions, though the Gulf conflict has created uncertainty and led to a suspension of time charter operations.
Beyond the current quarter, the company pointed to several growth markers. New supply arrangements with Deepak Fertilizers and ExxonMobil have started, while the petrochemical project is about 40% complete by physical progress, according to management. Petronet also expects to conclude off-take contract renewals with Qatar over the next two to three quarters and said tariff discussions are unchanged for now. The company separately announced plans to invest INR6,355 crore in a new LNG import facility in Odisha, underscoring its push to expand infrastructure even as near-term volumes remain uneven.
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