Petronet LNG's Q1 Profit Soars 40% Amid Peak Summer Demand

Petronet LNG Ltd, India's major LNG importer, recorded a 40% rise in net profit in the first quarter due to high summer demand. The company's net profit reached Rs 1,100.76 crore, with a 15% increase in revenue. CEO Akshay Kumar Singh highlighted record volumes and efficient operations.

Petronet LNG Ltd, India's largest liquefied natural gas importer, reported a 40 per cent jump in its first-quarter net profit due to peak summer demand leading to increased imports.

The company’s consolidated net profit for April-June reached Rs 1,100.76 crore, compared to Rs 787.73 crore in the same period last year, according to its stock exchange filing. Revenue from operations also rose 15 per cent to Rs 13,415.13 crore.

During a media call, Petronet Managing Director & CEO Akshay Kumar Singh said the company achieved its highest-ever quarterly volume of 262 trillion British thermal units (TBTUs) in April-June, marking a 14 per cent increase from the previous year and a 12 per cent rise from the preceding quarter.

Singh attributed the performance to severe summer conditions that drove gas demand from the power sector, which surged to 20 million standard cubic meters per day from 4-5 mmscmd during the off-peak season.

Petronet's Dahej import facility in Gujarat saw capacity utilisation soar to 109 per cent in the quarter, a significant rise from 96 per cent in the previous year. Singh also noted that Dahej processed 248 TBTUs, breaking previous records.

The company achieved higher throughput and robust financial results thanks to stable LNG prices, better terminal capacity utilisation and operational efficiency. LNG import prices averaged USD 11.5-12 per million British thermal units, Singh added. Petronet plans to increase the Dahej terminal's capacity from 17.5 million tonnes to 22.5 million tonnes next year.