Petronet LNG logs 30% drop in Q1 Net

Decrease in net profit due to higher depreciation and interest charges pertaining to Kochi LNG terminal

Petronet LNG Ltd, India’s state-owned importer of natural gas and operator of Liquefied Natural Gas (LNG) terminals, has posted a 30% drop in net profit for the quarter ended June on lower margins.

The company recorded a net profit of Rs 156 crore as compared to Rs 225 crore during the same quarter last year.

“The decrease in net profit is primarily due to higher depreciation and interest charges pertaining to Kochi LNG terminal capitalized in the books of accounts in September, 2013 and also lower margins at Dahej,” the company said in a statement.

Petronet operates a 10 million tonne per annum LNG import terminal at Dahej in Gujarat apart from another 5 MTPA terminal at Kochi in Kerala. The Dahej terminal is operating at 109% of the capacity but its margins on import of LNG from spot market have dipped. The Kochi terminal is operating at a mere 1% of the capacity.

Petronet is a Joint Venture between State-owned petroleum companies Oil and Natuiral Gas Corp (ONGC), GAIL, Indian Oil (IOC) and Bharat Petroleum Corp (BPCL). The company said the volumes at Kochi terminal would rise only after pipeline connectivity of the plant increases with commissioning of Kochi-Koottanad-Bangalore-Mangalore pipeline, being constructed by GAIL.

Petronet is also contemplating offering the storage capacity of Kochi terminal to international players in order to improve capacity utilisation of the terminal. The company’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 179.9, down 3.2% as over previous close.