Petronet LNG Q1 results: Profit jumps 45% to Rs 1,142 crore, revenue up 15%
Petronet LNG (PLL) reported a 45% jump in the first quarter profit to Rs 1,142 crore as a scorching summer boosted capacity utilization of its import terminal, sending its shares up 5% on Wednesday.
Petronet’s revenue from operations rose to Rs 13,415 crore in the April-June quarter, up 15% from Rs 11,656 crore in the year-earlier period.
“The company was able to achieve higher throughput and robust financial results owing to stable liquefied natural gas (LNG) prices, better capacity utilization of its terminals, and efficiency in its operations,” Petronet said in a statement.
The company processed 14% more LNG volume during the quarter than a year earlier. Its regasification terminal at Dahej recorded 109% capacity utilisation during the quarter, up from 96% in the corresponding period. Intense heat this summer pushed up cooling needs and demand for electricity in the country. This led to a substantial jump in LNG consumption by the power sector in May-June.
Auditors once again flagged the company's increased trade receivables on account of customers' unpaid ‘use or pay’ charges. These dues have risen to Rs 1,787 crore in three financial years, and include Rs 610 crore for 2023-24, Rs 798 crore for 2022-23, and Rs 379 crore for 2021-22. The company has made a provision of Rs 487 crore towards this.
Petronet, which is chaired by petroleum secretary Pankaj Jain and jointly controlled by ONGC, Indian Oil, Bharat Petroleum and GAIL, had offered customers last year a recovery mechanism. Petronet offered to waive
