Petronet March quarter profits slips 20% to Rs 239 crore

The fall in profits is despite a 19% reduction in expenses to Rs 5,698 crore as compared to Rs 7,021 crore in the same quarter last fiscal

Petronet LNG Ltd (PLL), India's biggest state-owned gas importer, has reported a 20% decline in net profit for the fourth quarter ended March 2016 despite a reduction in expenses on account of renegotiation of long-term RasGas volumes.

The company posted a net profit of Rs 239 crore for the three months ended March 2016, down  from Rs 300 crore in the corresponding quarter in the previous fiscal. 

The slide in profits by a fifth came despite a 19% reduction in expenses to Rs 5,698 crore as compared to expenses of Rs 7,021 crore in the same quarter last fiscal. 

The firm had earlier this year renegotiated its long term contract with RasGas of Qatar for purchase of 7.5 million tonne LNG for 25 years, bringing the price down to less than $5 per million British thermal units from $12 per mmbtu.

Revenues also dipped 15% to Rs 6,065 crore as compared to 7,161 crore in the corresponding quarter. The company's share price at the Bombay Stock Exchange (BSE) today opened at Rs 281.60, up 1.7% as compared to Monday’s close.