New Delhi: Due to a spike in natural gas prices throughout the world, Petronet LNG Ltd. on Thursday announced a 4% decline in its September quarter net profit. According to a company’s stock exchange filing, consolidated net profit in July–September was Rs 785.73 crore as opposed to Rs 817.61 crore a year earlier.
During a conference call, Akshay Kumar Singh, the chief executive officer of Petronet, stated that although global energy prices spiked during the Ukraine conflict, they have started to level down over the past 10 to 15 days. LNG volumes decreased as a result of the increase in spot prices since consumers could no longer pay the higher pricing.
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The largest LNG importer in India is Petronet, and the gas it buys is used in fertiliser factories and other sectors.
According to him, the company’s premier Dahej terminal in Gujarat processed 182 trillion British thermal units (TBTUs) of LNG from July to September, compared to 196 TBTU in the previous quarter that concluded on June 30 and 225 TBTU in the quarter that ended on September 30, 2021.
In comparison to 240 TBTU a year before, the company processed 192 TBTU of LNG total during the current quarter. In comparison to the same period last year, the company reported its highest-ever turnover of Rs 15,986 crore, according to Singh. The lease liability has an accounting impact of a foreign exchange loss of Rs 98 crore because of foreign exchange volatility.
A special interim dividend of Rs 7 per share has been approved by the company’s board of directors, according to Singh.
He claimed that a floating LNG terminal with a 4 million tonne annual capacity will be built at Gopalpur Port in Odisha at a cost of Rs 2,306 crore after investment approval from the business board. The terminal, which will be constructed in three years, will eventually be transformed into a land-based complex with a capacity of five million tonnes.
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The third LNG import facility for the corporation in the nation and its first on the east coast. Both the 5 million tonnes project in Kochi, Kerala, and the 17.5 million tonnes per year import facility in Dahej are run by Petronet.
Most LNG is imported by Petronet under long-term contracts. In contrast to the spot LNG price of USD 21–22, the supplied price under such a contract is USD 12.8 per million British thermal units in Dahej and USD 13.16 in Kochi.
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