Analyst Concall
Petronet LNG's Dahej plant posts highest Apr-Dec throughput
This story was originally published at 14:25 IST on 28 January 2025
Register to read our real-time news.Informist, Tuesday, Jan. 28, 2025
Please click here to read all liners published on this story
--Petronet LNG: Fall in Oct-Dec long-term cargo at Dahej not a concern
--CONTEXT: Petronet LNG mgmt comments in post-earnings conference call
--Petronet LNG: See capacity booking of up to 40-50% at ramped-up Dahej unit
--Petronet LNG: Dahej terminal's Oct-Dec capacity utilisation at 93%
--Petronet LNG: 15% VAT on LNG in Gujarat is a big problem
--Petronet LNG: Bringing natural gas under GST ambit to hugely benefit users
--Petronet LNG: Defaulters of 'use or pay' charges reduced this year
--Petronet LNG: Face no forex risk, to pass entire exposure to off-takers
--Petronet LNG: Took 5% price hike on regas tariff at Dahej from Jan. 1
--Petronet LNG: To spend INR 40 billion-INR 45 billion for capex in FY26
--Petronet LNG: See LNG supply glut by 2027-28 globally
--Petronet LNG: Expect 'real' glut in 2030 as 150-200 mln tn capacity goes on stream
Petronet LNG Ltd.'s overall throughput, including at the Dahej and Kochi terminals, is 228 trillion British thermal units for the December quarter, down from 232 trillion British thermal units in the year-ago quarter, the company said in a conference call with analysts on Tuesday. For the nine months ended December, the company reported a throughput of 729 trillion British thermal units, up from 685 trillion British thermal units a year ago. For Apr-Dec, the company's Dahej plant in Gujrarat has achieved its highest-ever throughput of 686 trillion British thermal units, up from 646 trillion British thermal units a year ago.
The company's long-term volumes at Dahej have been below 100 trillion British thermal units. However, the management does not see this as a concern, as long-term volumes remain the same because the scheduled arrival of cargos does not change.
The capacity expansion of 5 million tonnes at the Dahej unit is about to be completed in the next 4–5 months, the management said. The company expects a capacity booking of 40-50% in the ramped-up Dahej unit. With India being a price-sensitive nation, the level of utilisation depends upon the price. Last year, the company's utilisation was at 110% as prices softened. For the December quarter, the Dahej plant utilisation was at 93%, the management said.
The government has not brought natural gas under the goods and services tax regime. Hence, states charge value-added tax on it, which puts additional burden on the consumers. Bringing natural gas under the ambit of GST will be hugely beneficial for the users, the management said. When the company sells liquiefied natural gas in Gujarat, it charges VAT from the uptakers, who in turn impose VAT on the consumers. This created a cascading effect of VAT, which can only be improved once the natural gas is brought under the ambit of GST, the management said. Gujarat has a 15% VAT, which is a big problem, the management added.
The management further said that defaults of 'use or pay' charges were reduced in the December quarter. Earlier this year, 4-5 uptakers had defaulted on their 'use or pay' charges, but in the December quarter only Hinduatan Petroleum Corp. Ltd. defaulted on their charges of INR 1.17 billion, the company said. Petronet LNG faces no exchange rate risk as the company passes off its exposure to off-takers, the management said. The company has increased the regasification tariff at Dahej by 5% from Jan. 1, the management said.
The company is planning a capital expenditure of INR 40 billion-INR 45 billion in 2025-26 (Apr-Mar), with a capital expenditure of INR 30 billion-INR 35 billion for expansion and the petrochemical project at Dahej, the management said. The company sees a supply glut in liquified natural gas in FY27 because most of the plants currently under construction will be operational by then. However, the real glut will be seen in FY30 as 150-200 million tonne capacity goes on stream, the management said.
Petronet LNG on Monday posted lower-than-expected net profit and revenue for the December quarter. The company reported a net profit of INR 8.67 billion, down 27.2% from INR 11.91 billion in the year-ago quarter. The company's revenue for Oct-Dec was INR 122.27 billion, down 17.1% from INR 147.47 billion in the year-ago quarter. At 1358 IST, shares of the company traded at INR 301.35 on the National Stock Exchange, down 3%. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Akshay V. Johnson
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
