Petronet LNG Limited (PETRONET) Q4 FY23 Earnings Concall Transcript

Petronet LNG Limited (NSE:PETRONET) Q4 FY23 Earnings Concall dated May. 03, 2023.

Corporate Participants:

Amit Murarka — Executive Director

Vinod Kumar Mishra — Director of Finance

Rakesh Chawla — GGM and President, F&A

Analysts:

Probal Sen — ICICI Securities — Analyst

Somaiah V — Avendus Spark — Analyst

Siddharth Chauhan — Batlivala and Karani Securities India Private Limited — Analyst

Kirtan Mehta — BOB Capital Markets — Analyst

Yogesh Patil — Dolat Capital — Analyst

Maulik Patel — Equirus — Analyst

Sabri Hazarika — Emkay Global — Analyst

Puneet — HSBC — Analyst

Varatharajan Sivasankaran — Antique Limited — Analyst

Heymal — — Analyst

S Ramesh — Nirmal Bang Securities — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Petronet LNG FY’23 Results Call hosted by Axis Capital Limited. [Operator Instructions] I now hand the conference over to Mr. Amit Murarka from Axis Capital. Thank you and over to you, sir.

Amit Murarka — Executive Director

Thank you, Robin. Good evening, everyone. Thank you for taking the time out to attend this post results call of Petronet LNG. We have with us the senior management of Petronet LNG, starting with Mr. Vinod Kumar Mishra, who is the Director, Finance; Mr. Rakesh Chawla, who is GGM and President Finance and Accounts; Mr. GK Sharma, CGM and Vice President Marketing; Mr. Vivek Mittal, CGM and Vice President Marketing; Mr. Debabrata Satpathy, who is the General Manager F&A; as well as Mr. Ashwani Agarwal, who is also Manager F&A.

Without much ado, I will hand over the floor to the management for their opening remarks. Post that, we’ll have the Q&A. Over to you, Mr. Mishra.

Vinod Kumar Mishra — Director of Finance

Thank you. Very good evening to all of you. And I’ll start with the performance of the company. And if you see the main highlights of the company, it has been INR58,899 crore — INR59,899 crore in financial year 2022, ’23, and there is a surge of around 39% from the previous year as compared to INR43,169 crore. And if you look at the throughput of Dahej terminal, it has been very promising because we have been able to have a throughput of 172 TBTU as against 154 TBTU in the previous quarter and 170K TBTU in the corresponding quarter. And total throughput both Dahej and Kochi has been 185 TBTU against 167 TBTU in the previous quarter and 190 TBTU in the corresponding quarter. And if you look at the yearly basis throughput, then you will find that there it is not as high as it was last year. Of course, Dahej has a throughput of 704 TBTU, as against 793 TBTU in the previous year. And Kochi had 48 TBTU throughput as against 50 crore TBTU in the corresponding year last year. So this is how difficult performance has been. And if you look at the quarterly results, then profit PBT has been INR818 crore as against INR1,586 crore in the previous quarter, and INR984 crore in the corresponding quarter of the previous year. And PAT has been INR614 crore as against INR1,181 crore in the previous quarter and INR750 crore in the corresponding quarter of the previous year. And on yearly basis PAT and PBT has been INR4,335 crore as against INR4,474 crore in the previous year. And PAT has been INR3,240 crore, as against PAT of INR3,352 crore industry. So this is the total performance of the company. And apart from that, there’s a slight downward trend we see in the profitability. And this is mainly because of IndAS impact of foreign-exchange variation, which has been to the extent of INR258 crores. And apart from that, we have declared dividend of INR3 per share. Apart from the INR7 we have declared as interim dividend after the second-quarter. So this is how we have performed. And now, the house is open for the questions.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Probal Sen from ICICI Securities. Please go ahead.

Probal Sen — ICICI Securities — Analyst

Thank you very much for the opportunity, sir. Good evening. Two questions. One, what we’ve seen is despite the spot LNG prices dropping off quite a bit in this quarter, third party or service revenue volumes have yet to reach anywhere near our normal run-rates of between 75 to 80 TBTUs. So just wanted to get a sense, is it because the contract structure you work in tandem with housing price are changing or will they need to drop even more from here for our volumes to recover back to, let’s say, about 75 to 80 TBTUs? That was my first question.

Vinod Kumar Mishra — Director of Finance

First question you are asking that there has been a nominal downfall in the prices of LNG and it’s still the service cargoes are not increasing to that extent, but you see that there has been surge to the extent of 61 TBTU in this quarter as against 47 TBTU in the previous quarter.

Probal Sen — ICICI Securities — Analyst

Right.

Vinod Kumar Mishra — Director of Finance

There has been a rise in the service cargoes that is these service cargoes maybe, as a part it maybe under the long-term contracts of the off-taker. So we are getting higher number of cargoes now in the fourth-quarter. As you look at the Apple [Phonetic] data, It is even higher. And we are getting good number of cargoes now. And 21 cargoes have come so far in Axis [Phonetic] also, out of which 11 are on Amit Cargo and 10 are [Indecipherable] So we can say gradually situation is improving, and prices have started declining only after February. So you cannot say entire quarter there was a lower prices. It was only after February that prices have come down. It takes time for the customers to adjust to procure the cargo. So it’s not that in a day, you’ll find a cargo. And when price was declared, it’s almost two months later. So we can say that it’s gradually improving now and perhaps more cargoes will come in the current year in this quarter.

Probal Sen — ICICI Securities — Analyst

Got it. Second question is more of housekeeping, sir. Can you share the regas service revenue for the quarter?

Vinod Kumar Mishra — Director of Finance

Regas service revenue is to the extent of — this quarter it was again 359.

Probal Sen — ICICI Securities — Analyst

Yes.

Vinod Kumar Mishra — Director of Finance

INR359 crores.

Probal Sen — ICICI Securities — Analyst

INR359 crores. If I can squeeze in just one more question? Any updates, sir, on our plans for the petrochemical project? Any turn up of the final capex, timelines? Anything you could share?

Vinod Kumar Mishra — Director of Finance

Petrochemical as going on and at present you can say that [Indecipherable] has been prepared. We are in the process of licensor selection. And once the licensor is selected. Thereafter, we will have the DFR [Phonetic] prepared by the consultant, and then we will go to the Board for approval of the project. And thereafter, the activity will start. So, we will have to wait for some time at least. It may take, at least for selection of this licensor. And thereafter, maybe, in next one or two months the DFR will be ready by the [Technical Issue] then we will go to the Board. So, three-four months, we can say right now.

Probal Sen — ICICI Securities — Analyst

Okay. Any indicative investment that you — made any changes in terms of the number? Because I believe you had shared about, I think INR

Vinod Kumar Mishra — Director of Finance

That is the range we are still estimating because we are not still clear how much will be the capex because once the licensor selection is made, then only we can come to know how much is the capex because it’s based on the technology, Whatever technology we are selecting, it is having different kind of requirements for equipment, for raw-material, and for other catalyst. So, those things can be known only after the selection of licensor, because whatever technology they are selecting, it has different kind of capex technology. So, that way we can say that still we are keeping that capex at INR14,000 crores.

Probal Sen — ICICI Securities — Analyst

Got it, sir. Thank you so much for the detailed answers. I’ll come back if I any questions. All the best. Thank you.

Operator

Thank you. We have the next question from the line of Somaiah V from Avendus Spark. Please go ahead.

Somaiah V — Avendus Spark — Analyst

Thanks for the opportunity, sir. Sir, can you just give us an update on the key projects that you’re working on over Dahej expansion, Gopalpur FSRU? And also, the capex outlook maybe for the next couple of years?

Vinod Kumar Mishra — Director of Finance

Dahej, you know that this plan is already going on, planned construction is going on. And perhaps, if you look at the capex, which we are estimating the final capex, total capex, you know that it’s around INR1,250 crores, out of which, I think, INR744 crores we have already incurred. And balances is left, so balance should be this year, and then slightly will be next year. So this is total capex of Dahej tank. And then, Jetty we are going to construct with INR1,550 crores. That is the capex. We have already started process for awarding the job for Jetty construction. And capex is already there INR1,650 crores. And then, we come to. Dahej expansion plan, which we have from 17.5 to 22.5 MMTP. That is also having a capex of around INR570 crores. So that is the capex for Dahej. And apart from that, petrochemical, I have already mentioned that whenever it comes, it will be estimated at INR14,000 crores [Phonetic]. That will be there. And apart from that, we are also thinking of some one more tank at Kochi. So perhaps we’ll go ahead with that plan in the future. So, [Indecipherable] it comes and approval is given, then we will have capex of INR600 crores. So this is how. And apart from that, we have contracts — we have the is the approval approved for Gopalpur terminal. So, there also we have a capex of INR3,300 crores. FSRU terminal, we are going to [Indecipherable]. So this is how capex plan is there. And I think more will come at all, any capex, but right now, this is the immediate capex plan we have.

Somaiah V — Avendus Spark — Analyst

What will be the next couple of years, our capex outlook in terms of annual capex?

Vinod Kumar Mishra — Director of Finance

Capex outlook, as you know, whatever capex is coming up, there is a big ticket capital commitment would be Petrochemical plant. That. So, for that we have thought out from debt-equity ratio of 70%, 30%. So, those kinds of plants perhaps we will rationalize it as — will have 30% equity, 70% debt. And part of that 2,300 Gopalpur project, INR2,300 crores, that also — that’s not a big capex, but — we may think of some debt if required. So, that’s where plan is clear that we will optimize the cost through this kind of debt mix for the major projects. But of course, for small projects, like [Indecipherable] we are not going to have some financing arrangement. So, tanks, we don’t have any financing arrangement. It’s very small capex. So, we are meeting from our internal resources. So, this is how we are going to plan for capex in the future.

Somaiah V — Avendus Spark — Analyst

Got it, sir. Just was looking more from a annual capex plan, I think, this year, we spent around FY’23 INR1,000 crores, so what will be that deep crore number for our FY’24, FY’25?

Vinod Kumar Mishra — Director of Finance

Next year, I can tell your that it will be around INR1,700 crores, currently, which is going on, April to March ’23, ’24.

Somaiah V — Avendus Spark — Analyst

Got it, sir. Sir — and also, any plans on the cash that you have? I mean, anything from an incremental build it angle? Or is it because of the Petchem project, you probably want to come to — I mean, is it all sort of around cash balance?

Vinod Kumar Mishra — Director of Finance

See, I have just mentioned that dividend part will be take care of, that’s why we are already planning to have some debt-equity mix of 70%, 30% for Petchem plant. So, this will not put burden on the equity itself. And you know internal generation is already there to the extent of almost INR3,300 crores [Indecipherable]. So that way, there should not be stress on cash. And perhaps dividend part will continue to be paid over there. So, that’s why we are planning in such a way that dividend payout is not affected. And at least, we are able to make 100% dividend payout ratio. That should continue. This is our plan. That’s what we are thinking of.

Somaiah V — Avendus Spark — Analyst

Got it, sir. Sir, just one last question from my side. So, this take or pay charges which we accounted in the last quarter. So, I mean, the status on that in terms of receiving — what is the amount that is — which we’ve received so far and what is long standing?

Vinod Kumar Mishra — Director of Finance

Yes. So, we have booked use or pay charges for the cargoes which have been defaulted by the off-taker. But the only thing is that we are pursuing for that and perhaps that — we are hopeful that that should be paid by them. This is as per contract. And some of them have recognized that but, of course, we have to see that how we have to recover it. That process is going on. We are trying to recover it in the best possible way. And hopefully, we should recover those costs. And perhaps, in next year, when the prices are normal for LNG, then perhaps there should not be any default on their part. But we are hopeful that in future it will not be there. But for the past, we have to, of course, recover those charges. For that, we are making all-out efforts to recover.

Somaiah V — Avendus Spark — Analyst

So, of the INR850 crores that we have booked, so still it remains as a receivable. Is that the right understanding, sir?

Vinod Kumar Mishra — Director of Finance

Yes. It is — it will — you are saying it is receivable?

Somaiah V — Avendus Spark — Analyst

Yes. So, we have not got any — I mean, anything for that INR350 crores?

Vinod Kumar Mishra — Director of Finance

Yes, we have not received so far.

Somaiah V — Avendus Spark — Analyst

Yes. We will not — got it. Thank you.

Operator

Thank you. The next question is from the line of Siddharth Chauhan from Batlivala and Karani Securities India Private Limited. Please go ahead.

Siddharth Chauhan — Batlivala and Karani Securities India Private Limited — Analyst

Yes. Hi. So, just two questions from me. One, on the other expenses side that there seems to be a slight increase in this quarter. So, is that seasonal — seasonality or is there something else as well?

Vinod Kumar Mishra — Director of Finance

Increase in throughput. Other expenses. So, there’s actually provision for INR55 crores for some arbitration award. So that is the main reason. That’s why I think it has increased.

Siddharth Chauhan — Batlivala and Karani Securities India Private Limited — Analyst

Okay. Sir, sorry, your voice was n ot very clear. So, INR55 crores for what?

Vinod Kumar Mishra — Director of Finance

For arbitral award.

Siddharth Chauhan — Batlivala and Karani Securities India Private Limited — Analyst

Arbitrage award. Okay. Okay. That helps. And just to clarify, so one more time at Kochi will be a CAPEX of INR600 crores, right?

Vinod Kumar Mishra — Director of Finance

Yes, yes.

Siddharth Chauhan — Batlivala and Karani Securities India Private Limited — Analyst

Yes. Okay. And last question just on the Gopalpur FSRU. So, my understanding is you have previously guided for two years-old of construction time. Now, what we assume right now is, there is a lot of tightness coming into the oil service chain. Yards globally are sort of getting full, shipyards are already full. And the ones in Southeast Asia with [Indecipherable] FSRU there, might also be getting load from offshore. So I’m just wondering if that two -year timeline is kind of achievable on FSRU?

Vinod Kumar Mishra — Director of Finance

Yes, we are still exploring the possibilities of how we can secure that FSRU. And for that we have appointed a consultant and seeing how we can do it. But we will first explore it and try to get it. Let us see what happens, but we cannot say we will get it, not get it, but we have some alternative plan also for this. If we are not able to secure some FSRU, then we will go ahead with the land based channel.

Siddharth Chauhan — Batlivala and Karani Securities India Private Limited — Analyst

Okay, perfect. Thank you so much, sir.

Operator

Thank you. The next question is from the line of Kirtan Mehta from BOB Capital Markets. Please go ahead.

Kirtan Mehta — BOB Capital Markets — Analyst

Thank you, sir, for giving me this opportunity. In term of the — you mentioned that for FY’22 surely you are pursuing with the users. In term of the stat-wise to get the acknowledgement from here, what are your steps that would middle rate your end to sort of convert this into either a issuable or sort of deciding whether to pursue it or not?

Vinod Kumar Mishra — Director of Finance

See, we are in fact trying to talk to them every time. And this has been as per the contract. They know it very well. One thing I can say that some of the customers have already direct a TVS [Phonetic]. That means they have recognized this liability in their books of account. So, that is, in fact, a matter of satisfaction that at least they have come to this level that they have recognized the liability in their books. But I will not disclose any, but some of them have recognized the liability for that.

Kirtan Mehta — BOB Capital Markets — Analyst

Right. In terms of sort of the escalation if we need to move visibly — sort of the escalation to the ministry to get this resolved? I mean, could it happen before the finalization of the FY’23 annual report?

Vinod Kumar Mishra — Director of Finance

Escalation in terms of recovery you are seeking?

Kirtan Mehta — BOB Capital Markets — Analyst

Yes.

Vinod Kumar Mishra — Director of Finance

Yes, escalation is normal, process is as per the contract. We are seeking. We are asking them to give it. There is a process given, nothing is happening. Then, there is an arbitration, process is already there, provided in the contract. If it is not mutually agreed-upon. So that is a legal process then if we are not able recover it.

Kirtan Mehta — BOB Capital Markets — Analyst

Thanks. Just another question was what would be, sort of the higher level of sort of close to 90% utilization, is it price slide sufficient? Or would we need prices to sort of become a bit more — improve from here before we can actually be 90% plus utilization?

Vinod Kumar Mishra — Director of Finance

See, the price have come down, almost $11, $10 is going on. So, prices, of course, have come to a reasonable level. But if it goes down, it is better. But even at this level you feel that in April month itself, we have reached the utilization level of 97%. So, that’s where we have already crossed in this month at least. But of course, in the last quarter, which we see, it has been only 77% around on a yearly basis. But this is a good sign that at least we are now improving and more cargoes are coming. And hopefully, May will also be very good. So let us hope for the best at least for this quarter. And if this sky trend continues for a longer time, then I think more and more spot cargoes will come to India.

Kirtan Mehta — BOB Capital Markets — Analyst

Right. So, when you say that utilization has improved to 97% level, are we seeing these for the spot cargoes as well?

Vinod Kumar Mishra — Director of Finance

See, I can say it’s not known to how much, but our service cargoes have increased. But this much I can say that there is a long-term contract, which is being as per schedule, ADP, whatever is annual delivery plan. And service cargoes which were not coming earlier, are now — have started coming now. So, in April, it has been, a good number of cargoes have come. And we can say that the situation has improved. That’s why the utilization level has increased to 97%. And one more good thing is that at least for this six-month period Dabhol will be closed. So, more cargoes from [Indecipherable] will come at least for the next six months.

Kirtan Mehta — BOB Capital Markets — Analyst

Right, sir. If I can say squeeze in one more question. In terms of the Kochi tank, we are currently operating at a utilization of the 20% level, and we are looking for [Indecipherable] tanks So what are the liability [Indecipherable] that we see to justify the liability of the Kochi tank?

Vinod Kumar Mishra — Director of Finance

Kochi carriage, you are talking about?

Kirtan Mehta — BOB Capital Markets — Analyst

Kochi — you mentioned that you are considering action to [Indecipherable] Kochi, which could cost us a capex of around INR600 crores.

Vinod Kumar Mishra — Director of Finance

Yes, yes. [Speech Overlap] tank over there because this is such a flexibility for trading LNG cargoes. Right now, it’s tied up. So, we are thinking of having it for future. And more — one good news is that today in the Board meeting itself it was declared that gas pipeline from Kochi to Bangalore may be commissioned by, you can say, November 2024. That is — that kind of commitment is coming from GAIL. So I think the utilization level can go up to 35% to 50% also next year, after commissioning, not right now. Maybe this financial year, it is not possible, but next year, it is possible. Because if GAIL Chairman himself has said that it is likely to be completed by November 2024. And it will be connected with the natural gas gate, then it’s quite possible to use it more and more because swapping mechanism is always there. And more [Indecipherable] will be coming so they will have a fair share of LNG usage because the swapping can be done and gas can be supplied from our terminal to those CGD [Phonetic] entities. So that is the kind of plan we are having. And perhaps, pipeline is a major interest and once the is overcome, then perhaps we will be able to have more usage of our Kochi terminal in future.

Kirtan Mehta — BOB Capital Markets — Analyst

Thank you, sir. Thanks for this detailed answer.

Operator

Thank you. We have the next question from the line of Yogesh Patil from Dolat Capital. Please go ahead.

Yogesh Patil — Dolat Capital — Analyst

Thanks for taking my question, sir. So in last few quarters, we have seen a gain on the sale of spot LNG, which boosted profit. What was mound in this quarter, quarter-four FY’23? Can you please share it?

Vinod Kumar Mishra — Director of Finance

Yes, we will tell you. Just a minute. Hold on. Trading margin INR73 crores.

Yogesh Patil — Dolat Capital — Analyst

Okay, thanks. So, second question, considering the fall in spot LNG prices in current scenario and the rising demand of gas, is there any provision in a use or pay contract that if the off-taker regasify the higher quantity of gas in this calendar year than previous year shortfall can be offset?

Vinod Kumar Mishra — Director of Finance

No, there is no provision as such because these capacities have to be utilized within the calendar year itself. If it is not, then the use or pay taxes are levied. So it is not provided in this contract. [Speech Overlap]

Yogesh Patil — Dolat Capital — Analyst

Okay. And the last one, sir, from my side. So, sir, please correct me if I’m wrong, in 2026 additional 0.6 MMTPA LNG will be coming to India from ExxonMobil. Is it a part of our Gorgon volume, tipping 1.4 for MMTPA, or this would be addition to 1.4 for MMTPA volume?

Vinod Kumar Mishra — Director of Finance

It is a additional contract we have entered at the time of negotiations with Exxonmobil that, in fact, this is not 0.6, it’s [Indecipherable] two, three years is a ramp-up period. So it will be coming to the extent of 1.2 MMTPA. From 2026, this will be 0.6. And from 2028 onwards, it will be 1.2 MMTPA, in addition to 1.425. So, total it will become around 2.625 after 2028. That means that Kochi terminal itself will utilize, by that time, at least up to 50%. Apart from whatever I’m saying that after this completion of pipeline, more representation [Phonetic] will be there, more volumes will come there when this contract will be implemented in 2026. So, I think that is there.

Yogesh Patil — Dolat Capital — Analyst

And what would be the pricing agreement for the additional volume?

Vinod Kumar Mishra — Director of Finance

[Indecipherable] I think [Indecipherable] will continue what is going on right now.

Yogesh Patil — Dolat Capital — Analyst

Okay. And the pricing part of LNG would be the same?

Vinod Kumar Mishra — Director of Finance

Pricing part, it will be same. It will be same, I think.

Yogesh Patil — Dolat Capital — Analyst

Okay, thanks. Thanks a lot, sir. It was really helpful.

Vinod Kumar Mishra — Director of Finance

Thank you.

Operator

Thank you. The next question is from the line of Maulik Patel from Equirus. Please go ahead.

Maulik Patel — Equirus — Analyst

Thanks for the opportunity. Sir, one question, you mentioned that there has been an uptick in the regas volume. Historically, in this Q1, Q2, because of partial shut-down of Dabhol, you generally do around 1.9 to 2 million tonnes of quarterly regas volume. Are you confident that you will achieve that past [Technical Issue]?

Vinod Kumar Mishra — Director of Finance

We are saying that after shutdown of Dabhol, whatever volume was there last year, it will continue.

Maulik Patel — Equirus — Analyst

Yes. Okay.

Rakesh Chawla — GGM and President, F&A

Between past [Indecipherable]?

Maulik Patel — Equirus — Analyst

No, I think year before that.

Rakesh Chawla — GGM and President, F&A

So, as we mentioned in the beginning of the call, the spot prices have come up, so we are expecting utilization levels to go up. What it would be actually is very difficult to predict [Technical Issue]

Maulik Patel — Equirus — Analyst

Got it. And the second question is on your — any other development related to this biogas or the LNG stations? Anything you are pursuing apart from the Petchem projects and Gopalpur?

Vinod Kumar Mishra — Director of Finance

Yes. With the compressed biogas, it is of course, we are thinking of, but not in a big way. I mean, right now, we are proposing to have at least four, five PBT stations. So, that have been incorporated in our capex plan. So, that is there, five LNG — CBG stations. But as and when it will come, we will again inform you. And as far as SSLNG is concerned, we have already four stations commissioned almost, but from the approval side are waiting. So, [Indecipherable] fuel, we have already — it’s all the LNG stations, at four places, and more will come in due course because of the disability in the prices, volatility in the prices of LNG, this segment [Phonetic] could not get so much of attention with the consumer because of high price of LNG was not affordable [Indecipherable] But now, since the prices have started coming down, so we hope that this segment will further now take this right and it will perhaps go in a good way in future.

Maulik Patel — Equirus — Analyst

Sir, what [Indecipherable] against renegotiation. We understand. And if you look at the last couple of months news, Germany has done one contract with Qatar, China did two contract with Qatar, and they took some equity stake in that North Field East [Indecipherable] but what we are doing other than in the country, the PLNG has been a negotiating agency for with Qatar. So, any update which we can expect for this renegotiation part? Or any incremental volume, we are part of that contract other than negotiation?

Vinod Kumar Mishra — Director of Finance

No, it’s actually, I can just only share that we have to finalize this contact for renewal and by the end of this year for the extension beyond 2028. This is what we are proceeding with. So we are now concerned with the renewal of the existing contracts, beyond 2038. So that is going on. As and when something is finalized, we will come back to you and declare it. But right now, we cannot share it, what is going on. But of course, we are in the process because we have to finalize this by December 2023.

Maulik Patel — Equirus — Analyst

Okay. Right. Thank you, sir.

Operator

Thank you. The next question is from the line of Sabri Hazarika from Emkay Global. Please go ahead.

Sabri Hazarika — Emkay Global — Analyst

Yes,sir, good evening. The usual bookkeeping question with respect to index and Gorgon volumes in Dahej.

Vinod Kumar Mishra — Director of Finance

Yes. Sabri, index [Phonetic] is at the gross margin level, INR156 crores positive. Then, forex gain INR23 crore positive. Then [Speech Overlap] Yes, am I audible?

Sabri Hazarika — Emkay Global — Analyst

Yes, yes, INR23 crores positive forex GAIL, right? Okay.

Vinod Kumar Mishra — Director of Finance

Forex GAIL. And other expenses level INR8 crore positive.

Sabri Hazarika — Emkay Global — Analyst

Okay.

Vinod Kumar Mishra — Director of Finance

And then depreciation INR82 crores and the finance cost INR71 crores.

Sabri Hazarika — Emkay Global — Analyst

Finance cost INR71 crores. So, PBT level INR34 crores, right?

Vinod Kumar Mishra — Director of Finance

INR33 crores. Yes.

Sabri Hazarika — Emkay Global — Analyst

[Indecipherable] INR73 crores, right?

Vinod Kumar Mishra — Director of Finance

Yes.

Sabri Hazarika — Emkay Global — Analyst

And any inventory gain loss during the quarter?

Vinod Kumar Mishra — Director of Finance

Inventory gain is INR20 crores. INR22 crores, inventory gain.

Sabri Hazarika — Emkay Global — Analyst

[Indecipherable] was INR166 crores, right? Okay. And what was the Gorgon volume in Dahej?

Vinod Kumar Mishra — Director of Finance

Gorgon volumes in Dahej. That’s INR9.70.

Sabri Hazarika — Emkay Global — Analyst

INR9.70 for the [Indecipherable]?

Vinod Kumar Mishra — Director of Finance

Yes.

Sabri Hazarika — Emkay Global — Analyst

And sir, second question is around this Dahej utilization. So, you mentioned the [Indecipherable] leverage itself went up to 97%. You said?

Vinod Kumar Mishra — Director of Finance

Yes, yes.

Sabri Hazarika — Emkay Global — Analyst

And which are the sectors which has driven it, I mean, in terms of consumption, was it power sector predominantly? Or was it broad based?

Rakesh Chawla — GGM and President, F&A

See, the prices have become comparatively affordable with respect to alternate fuel. So it is not only for — other industrial consumer sector also has come up, though we were using [Indecipherable] alternatives.

Sabri Hazarika — Emkay Global — Analyst

Okay. So, [Indecipherable] across the board improvement you are seeing, not because of that temperature, which has led to basically power sector —

Vinod Kumar Mishra — Director of Finance

Not really. That is just part [Indecipherable] and that too not that significant. I would say it is more of the industrial consumer across the board. All refineries, as well as petrochemical, [Indecipherable] Everyone has come up.

Sabri Hazarika — Emkay Global — Analyst

Okay. And regarding this new [Indecipherable] so do you think this can get threat of — do you see this getting absorbed with respect to new customers?

Rakesh Chawla — GGM and President, F&A

See, market is enough. I think it is not a matter of threat. The threat is to the alternate fuels, not to RLNG.

Vinod Kumar Mishra — Director of Finance

One more I will add to what he is saying, if you look at the long-term prices also, they’re at $10, $11, HPSC is already $12.16. So now it’s almost matching. Not much different. So, that way you can see that it hardly matters it’s a threat. I don’t see it as a threat now.

Sabri Hazarika — Emkay Global — Analyst

Right, sir. And your FY’23 capex was INR1,000 crores. Was that right?

Vinod Kumar Mishra — Director of Finance

’23 which has passed, okay. Yes, it’s around 900 something crores, INR950 crores.

Sabri Hazarika — Emkay Global — Analyst

Okay, sir. Thank you so much and all the best.

Operator

Thank you. The next question is from the line of Puneet from HSBC. Please go ahead.

Puneet — HSBC — Analyst

Yes, thank you so much. My first question is back to the use or pay contract. So, is my understanding correct that roughly INR850 crore and the previous years 400 odd — INR15 odd crores, both are unrecognized?

Vinod Kumar Mishra — Director of Finance

No, see, INR850 crores is rare this year only. We [Indecipherable] we are foreseeing that. As far as INR215 crores last year is concerned, that is also part of it. So, we have already regularly following it up with them. And in fact, as and when some solution will come out, it will be known to all. But it’s very clear that we are rigorously following it.

Puneet — HSBC — Analyst

Sure.

Vinod Kumar Mishra — Director of Finance

And it’s not that we are going to wave it. So, we will have it and we will try that they should pay. And then, we will see how we can go ahead because after all this is payable as per the contract.

Puneet — HSBC — Analyst

Correct. Absolutely. But you haven’t recognized it at all, right? It’s been one year at least on that number, previous eight number also? There is no further discussion, if I want to put it that way?

Operator

Sorry to interrupt, but we seem to have lost the line for the management.

Puneet — HSBC — Analyst

Okay.

Operator

We request you all to please stay with us, we will reconnect with the management. Ladies and gentlemen, thank you for your patience. We have reconnected with the management. Puneet, you may please repeat your question so that the management will be able to answer that.

Puneet — HSBC — Analyst

Sure, yes. So what I was trying to understand is even for the calendar year ’21, 415 crores, there had been no progress with the off-takers. Is that understanding broadly okay?

Vinod Kumar Mishra — Director of Finance

No, no. Progress is that we are following it up. And perhaps some of the customers have started directing PDS [Phonetic] also. That means they have started recognizing the liability [Indecipherable] in their book. So this is a [Indecipherable] thing, if this is happening at all, because as per contract this is a liability. In fact, this should be a burden on them, why they are not showing it as liability?

Puneet — HSBC — Analyst

Right.

Vinod Kumar Mishra — Director of Finance

And it’s not that we have waved it. We are not going to wave it like that. It’s their liability, they have to pay it.

Puneet — HSBC — Analyst

Understood. And secondly, on your Gopalpur, do you have the Board yet for ’23 or are you still waiting for that?

Vinod Kumar Mishra — Director of Finance

No. No, we have got the approval of board. We are going ahead now. We are now finalizing the transaction documents with Gopalpur Port Limited. And after that we will start the lining of the contract for construction of the Jetty and other facilities for the FSRU terminal.

Puneet — HSBC — Analyst

Okay. But in case you don’t get FSRU which you said that you are looking for alternate land. That will also change the capex number?

Vinod Kumar Mishra — Director of Finance

[Technical Issue] because we are also having issues because as you know very well that many of the FSRUs now are working in Europe for the vaccine last year, a lot of LNG coming up there. So we have to see the availability of the FSRU because it will be known only after reading some tendering process and receive the tenders, if something is happening, then only we’ll go ahead. If we find that there is no possibility of FSRU availability then we will go ahead with land-based terminals.

Puneet — HSBC — Analyst

And will you have to go back to the Board for approval or is the approval banned?

Vinod Kumar Mishra — Director of Finance

We will have to go back to the Board because we need to have the additional capex approval. And apart from that, we have already informed the Board in this regard that we have an option to go to land-based terminals after some time, after FSRU. So that option is already informed. Only thing, additional capex, we will have to — if it’s not FSRU, and then we’ll go back to Board for additional part of capex approval.

Puneet — HSBC — Analyst

Understood. And you said that for the Kochi So with that. I will turn is already informed auditing additional capex. Electricity is not as study and then will go back to go for aviation part of capex. I and you said before the Kochi, Bangalore pipeline, which is scheduled for November 2024. Is there any opportunity to increase offtake from Kochi in the interim?

Vinod Kumar Mishra — Director of Finance

If you see, even now we are utilizing 20%, almost one MMTP already being utilized. And now we are hoping that MRPL and OMPL will also come back to this RLNG, which is in place of alternate fuel they were using. I think that is a silver lining we have. But at least MRPL, one of the big customers and OMPL, they will start using natural gas again in that region.

Puneet — HSBC — Analyst

And how much can they take?

Vinod Kumar Mishra — Director of Finance

25% to 30% if they start using it.

Puneet — HSBC — Analyst

So, your 20% goes up to 25% [Indecipherable]?

Vinod Kumar Mishra — Director of Finance

25%, maybe 30% also, depends upon if the price trend continues like this, $11 and $10, if it will continue, this will increase only in future.

Puneet — HSBC — Analyst

Understood. That’s really helpful. Thank you so much.

Vinod Kumar Mishra — Director of Finance

Thank you.

Operator

Thank you. The next question is from the line of Varatharajan Krishnan, I’m sorry, Varatharajan Sivasankaran from Antique Limited. Please go ahead.

Varatharajan Sivasankaran — Antique Limited — Analyst

Thanks for the opportunity, sir. My question was just answered in fact. Thank you.

Operator

Thank you. We have next question from the line of Heymal, an Individual Investor. Please go ahead.

Heymal — — Analyst

Thank you for this opportunity. Sir, just could I ask pre-COVID like FY’19, FY’20 what was a Dahej and Kochi annual production. Like, this year you said 704 and 48 for Kochi, and 704 for Dahej. What was it for FY’20 if you have it in case?

Vinod Kumar Mishra — Director of Finance

’21, ’22 I have told you, 54, it was just. But 2021 — ’19, ’20, I’ll have to see it. I have got the data for last year. Just a minute hold on, I’ll let you know. But you are asking too much back date. It was COVID period, I think. Up to ’19, ’20 was before COVID. Okay. Before COVID, how much is the volume? [Technical Issue] So it is normal. I think it is still normal, 41.88 was there, ’19, ’20. We are talking about Kochi terminal.

Heymal — — Analyst

And Dahej?

Vinod Kumar Mishra — Director of Finance

Dahej in ’19, ’20?

Heymal — — Analyst

Yes, if you have it, sir, not then —

Vinod Kumar Mishra — Director of Finance

I’m trying to — you have asked it. 885 TBTU. 885.

Heymal — — Analyst

Sir, just — do you believe like this year with prices at this $8, $11 and $12, would it be aspirational to go back to those levels? Back to ’19, ’20 levels, you were at these $11, $12? Or is it too high of a price?

Vinod Kumar Mishra — Director of Finance

See, it’s only guesswork you are asking us to do. We are hoping that it will go to that level at least. As I have said that, April has shown that there is a good utilization of [Indecipherable]. So, I hope that it will further increase in future. There has been overall lapse in energy [Indecipherable] in last financial year ’22, ’23. So, that way you can say this has impacted our utilization, but once it comes to normal, then you find that it will be going up to at least 90% level. I cannot say it will go beyond the 100%, but 90% is achievable with this kind of prices. 97%, still we are running in SS.

Heymal — — Analyst

Okay. Thank you, sir. The rest of my questions were all answered. I appreciate your answering the questions. Thank you.

Vinod Kumar Mishra — Director of Finance

Thank you.

Operator

Thank you. The next question is from the line of S Ramesh from Nirmal Bang Equities. Please go ahead.

S Ramesh — Nirmal Bang Securities — Analyst

Thank you very much. You mentioned that there is a forex loss of INR258 crores, so where is that included in your P&L?

Vinod Kumar Mishra — Director of Finance

That’s in the other expenses.

S Ramesh — Nirmal Bang Securities — Analyst

So the entire other expense is FX loss?

Vinod Kumar Mishra — Director of Finance

No, no, INR258 crores is for the year.

S Ramesh — Nirmal Bang Securities — Analyst

Okay. What is the budget for the quarter?

Vinod Kumar Mishra — Director of Finance

For the quarter there is a INR23 crore gain.

S Ramesh — Nirmal Bang Securities — Analyst

Okay. Okay. Fair enough. So, this INR258 crore was for the year?

Vinod Kumar Mishra — Director of Finance

Yes, yes.

S Ramesh — Nirmal Bang Securities — Analyst

Fair enough. And the second thought is now, a lot of no LNG terminals coming up. [Indecipherable] terminal is coming up. So, if you take a four, five year, you — I guess LNG share can be sustained? So, is there any risk to your utilization rate if Dara terminal is commissioned and couple of other terminals on up in the [Technical Issue] [Speech Overlap]

Vinod Kumar Mishra — Director of Finance

See, we are already having our capacity booked to the extent of almost 15.75 MMTPA at Dahej. This is 7.5 MMTPA, this Qatar gas contract. And 8.25 MMPTPA is the capacity booked by the off-taker. For 15.75, at least I have, which is almost 85% to 90% of the capacity. So, I’m not having any threat from anybody because we have long term contracts with our off-taker, our promoters. So, that’s why we are secured. So, be assured that whatever terminals are coming, in fact, this is a challenge for them, how to run those terminals. We don’t have a challenge. Only fight could be that additional volumes will come, but the kind of connectivity, kind of regulations [Phonetic] we have, no other terminal can have. Simply having a terminal is [Indecipherable]. Pipeline connectivity is a big issue. Now many terminals are not able to run because of that connectivity. You see many terminals are located at a place where there is no pipeline connectivity or very less connectivity. So, that way, this terminal is far, far better than any terminal. So I don’t foresee any threat from them. But of course, since they are coming and entire consumption is also going to increase in future. As you know that, whatever this plan is for the Government of India to increase the share of natural gas around 6% to 15%. This upcoming CBG entity, having so many projects coming up in the next four, five years, where from we will get the gas? It will be only through these terminals everywhere, domestic gas probability is not there. So, they will trap the gas with the domestic gas and supply is on the LNG terminal. This will happen because Southern India doesn’t have too much domestic gas. So, ultimately, these terminals will be utilized in the future.

S Ramesh — Nirmal Bang Securities — Analyst

Sir, if you look at Kochi, what is the status of the use or pay for Kochi over the current volumes and for the increased capacity utilization, have you already tied-up with use or pay or as the network [Indecipherable] network comes in place, you will start arranging for use or pay?

Vinod Kumar Mishra — Director of Finance

No, no, it’s not. See, capacity booking is only at Dahej terminal, first thing. Kochi terminal is only receiving the volume form Exxonmobil, and that contract we have entered for 1.425 MMTPA. So, it was supposed to be brought to Kochi, but because of connectivity issues and consumption level at Kochi, some of the cargoes are coming to Dahej. So that way we are utilizing because demand should be there. As of now, there is not so much of demand at Kochi. But there is only contract for 1.425 MMTPA with ExxonMobil. This is again back to back contract with off-taker. So that way they have to take that gas either [Technical Issue]

S Ramesh — Nirmal Bang Securities — Analyst

Hello?

Operator

Sorry to interrupt, sir. We have — the line for the management has disconnected, please stay with us while we reconnect. Thank you for your patience, ladies and gentlemen, we have reconnected with the management. Over to you, sir.

Vinod Kumar Mishra — Director of Finance

Yes. So, I was just talking that Kochi terminal has the contract of 1.425 MMTPA with ExxonMobil, but that is not a use or pay contract. It’s a contract for back-to-back delivery of the RLNG to off-takers. And you know that contract has a ratio of 40% BPCL, 30% IOCL, 30% GAIL. So that way it is distributed. So that contract was entered just to utilize Kochi terminal. And in addition to that, there is additional gas coming up from 2026, 0.6 MMTPA for two years, three years, and then 1.2 MMTPAA. So total 2.62 MMTPA contracts are in fact — in fact should come in Kochi, but because utilization is not that much in Kochi, so some of the cargoes we are bringing to Dahej.

S Ramesh — Nirmal Bang Securities — Analyst

Understood. If I may just squeeze in one more question. So in FY, you have already booked some use or pay claims, it is to kind of normalize the margin. So, if you had to look at profit growth for FY’24, assuming 90% capacity utilization, is it possible to show some growth in the profit-after-tax for FY’24? On the base you have already reported in FY’23?

Vinod Kumar Mishra — Director of Finance

See, this is all — as I said, this is guesswork. But we, in fact, intend to do so. We want to show the growth in profit, because once the volumes comes in the way, it is coming in April and May. I think there is no doubt that we should increase the present profitability growth rate. And maybe that next year we should be better than this year. Because I am, again, saying that if the prices are reasonably okay, say $8, $9, $10, we will be able to utilize our terminal in the best possible way, and then profitability will automatically increase.

S Ramesh — Nirmal Bang Securities — Analyst

Thank you very much, sir. Thank you and all the best.

Vinod Kumar Mishra — Director of Finance

Thank you.

Operator

Thank you. Ladies and gentlemen, that would be our last question for today. I would now like to hand the conference over to Mr. Amit Murarka for closing comments. Over to you, sir.

Amit Murarka — Executive Director

Yes, thanks, Irwin. Thank you, everyone, for your time on the call today. I would now hand over the floor back to Mr. Mishra for any closing comments if you have, sir.

Vinod Kumar Mishra — Director of Finance

Thank you very much and for the patience you have shown in listening to my answer. And whatever question you have, you can ask again, if you have not been able to ask here, through email to our team, and perhaps we are — in fact, we’re glad that you are [Indecipherable] in Petronet LNG. But once again, I will say that the kind of model which PLL has is the robust model in the market; profitability is assured, contracts are assured. Come what may, the use or pay charges, or take or pay charges will ensure that profitability is not going down substantially and —

Operator

[Operator Closing Remarks]