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Petronet LNG advances after strong Q2 outcome

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Capital Market
Last Updated : Oct 30 2019 | 10:04 AM IST

Petronet LNG reported 90.09% surge in consolidated net profit to Rs 1089 crore on 13.04% fall in total income to Rs 9449.70 crore in Q2 September 2019 over Q2 September 2018.

The result was announced by the company after market hours yesterday, 29 October 2019.

Petronet LNG said the company has elected to exercise the option of lower tax rate of 25.17% under Sec 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019.

Accordingly, the deferred tax liabilities (net) (DTL) as at 30 June 2019 and estimate of tax expense for the quarter ended 30 June 2019 have been remeasured and resultant impact of Rs 376 crore on DTL and Rs 70 crore respectively pertaining to previous quarter have been recognized in the current quarter.

To secure against future escalation in lease rent for the Kochi LNG Terminal and also to settle ongoing litigations with the Cochin Port Trust (CPT), the company had offered a proposal for one-time settlement (for the period from 2010 to 2039) of lease rent to CPT, which has been approved by the board of trustees of CPT. In accordance with the proposed onetime settlement, expense of Rs 72 crore (amount up to 31 March 2019) has been recognized in Q2 September 2019 as an exceptional item.

Petronet LNG has declared special interim dividend of Rs 5.50 per equity share for the financial year 2019-20. The record date for the special interim dividend is 8 November 2019.

Shares of Petronet LNG are currently trading 5.07% higher at Rs 293.35. The stock has traded in the range of Rs 286.80 and Rs 296.20 so far during the day.

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On the BSE, 1.06 lakh shares were traded in the counter so far compared with average daily volumes of 1.20 lakh shares in the past two weeks.

Petronet LNG primarily operates in the business of import and processing of liquefied natural gas (LNG).

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First Published: Oct 30 2019 | 9:20 AM IST

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