Analyst Concall
Petronet LNG Dahej terminal Q1 usage at 66% of higher output
This story was originally published at 21:12 IST on 13 August 2026
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--Petronet LNG: Dahej LNG terminal Q1 usage at 66% vs 92% YoY at low capacity
--CONTEXT: Comments by Petronet LNG mgmt in post-earnings analyst call
--Petronet LNG: Capacity utisation in Apr-Jun at group level at 58%
--Petronet LNG: Gross margins higher in Q1 on trading, inventory gain
--Petronet LNG: Work on upcoming petrochemicals unit on track, 40% work done
--Petronet LNG: Business with QatarEnergy to scale post Hormuz tensions ease
By Sunil Raghu and Vaishali Tyagi
AHMEDBAD/MUMBAI – Petronet LNG Ltd. Thursday said its Dahej liquefied natural gas terminal operated at 65.6% capacity utilisation in Apr-Jun compared to 92% a year ago and 90% in the March quarter. The company officials said both the figures are not comparable as Dahej terminal's current capacity stands at 22.5 million tonnes per annum, up from 17.5 MTPA till Mar. 31, 2026.
Meanwhile, capacity utilisation of the Kochi terminal stood at 23.7% in the June quarter. At group level, Petronet LNG's capacity utilisation was 58% in Apr-Jun, compared with 76% in the June quarter a year ago and on a trailing quarter basis.
The capacity utilisation remains under pressure as the war in West Asia led to closure of the key LNG supply route – the Strait of Hormuz -- leading to lower volume at Petronet LNG's terminals. The company is trying to compensate more than two-thirds of the volume lost from the region through alternative cargoes, mostly brought under tolling arrangements. Under these arrangements, Petronet LNG provides its terminal and services rather than buying and selling LNG on its own, and, in turn, earns a fee.
Petronet LNG has not been receiving cargo as its key supplier Qatar Energy is unable to supply LNG as per long-term contract between these two entities due to the war. The war has seen Qatar Energy announce force majeure, which it has been extending every month since the beginning of the war in West Asia. The tolling arrangements help Petronet LNG earn revenue at such times.
The company official said this trend of lower long-term volumes and higher tolling volumes has continued into the second quarter, too. It expects utilisation to improve once LNG supplies from Qatar resume on resolution of the war in West Asia and the opening of Gulf of Hormuz. Petronet LNG officials said they are in constant touch with Qatar Energy, which has been ramping up production and Petronet LNG officials are hopeful of receiving LNG on a free-on-board basis once exports resume.
The company reported a sharp rise in its net profit for the June quarter despite a significant decline in its revenue from operations. Net profit for the quarter was well above Street estimates. The company's standalone net profit for the June quarter rose 33% to INR 11.33 billion. However, sequentially, the bottom line declined 15%.
The company saw its revenue from operations post its sharpest year-on-year decline in almost 42 quarters, and significantly below estimates. The company's revenue from operations was INR 55.54 billion, down 53% on year.
The company said its gross margin in the first quarter benefited from trading and inventory gains. Inventory gain stood at INR 1.93 billion, while trading gain was INR 3.01 billion.
The official explained that higher spot LNG prices, relative to long-term contracted prices, create trading opportunities, allowing the company to generate gains even with relatively small spot volumes. It added that such trading gains have been part of Petronet LNG's business model during periods of market dislocation over the last five to six years. The company said the trading opportunity is independent of spare capacity created by the disruption in Qatar supplies and can continue even with relatively small volumes.
Talking of capital expenditure, the company official said they have planned to invest around 9.06 bln rupees as capex in 2026-27 (Apr-Mar) and indicated capex would remain at a similar level for FY28, too. Though the official did not share capex of Apr-Jun or till date in the current financial year, they said that they have completed nearly 40% of physical work on their upcoming petrochemicals project. They also said the project remains on track. Petronet LNG is setting up a petrochemicals complex at Dahej, including a 750,000 tonnes per annum propane dehydrogenation unit and a 500,000 tonnes per annum polypropylene unit, with associated ethane and propane handling facilities.
Thursday, shares of Petronet LNG closed 0.2% lower at INR 279.30 on the National Stock Exchange. The company announced its June quarter earnings after market hours on Wednesday. End
Edited by Deepshikha Bhardwaj
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