Key highlights from Petronet LNG Limited (PETRONET) Q3 FY24 Earnings Concall
- Financial Performance
- Registered highest ever PBT of INR1,597 crore and PAT of INR1,191 crore in Q3 FY24.
- PBT increased 46% compared to previous quarter and was flat versus last year’s Q3.
- PAT increased 46% versus previous quarter and was flat versus last year’s Q3.
- Volume throughput at Dahej terminal increased 21% compared to the prior year nine month period.
- Operating Performance
- Dahej terminal utilization was 96% in Q3 FY24.
- Total throughput volume at Dahej and Kochi terminals was 232 TBT in Q3 FY24.
- Higher utilization of Dahej terminal and efficiency in operations drove profitability growth.
- Outlook
- Petronet LNG registered robust volume growth in nine months of FY24.
- Higher volumes along with high utilization levels at Dahej terminal are expected to continue driving profitability going forward.
- Red Sea Disruption
- Petronet LNG has long-term contracts with Qatar for LNG supply, so no impact on those cargoes.
- Disruptions could impact LNG cargos transiting through Suez Canal and Red Sea from sources like US.
- But Petronet does not expect impact on cargoes coming to its terminal, even from other sources.
- Receivables
- INR1,263 crore of receivables outstanding for user pay charges in 2021 and 2022.
- Settlement reached with customers to provide bank guarantees securing these receivables.
- No revenue loss or accounting impact for Petronet, receivables are secured.
- If volumes shortfall is made up by 2024/2025, user pay charges will be waived.
- Already recognized revenue from user pay charges will be reversed.
- Increase in Opex
- INR228 crore provision created against receivables, adjusting it OPEX is in line.
- As receivables recovered, provisions will be reversed over time.
- Increased OPEX is temporary accounting impact, will normalize.
- Kochi/ Gorgon LNG
- Kochi terminal gross margin impact was INR136 crores.
- Service revenue was INR623 crores, depreciation and finance costs were INR84 crores and INR69 crores.
- Year-to-date Gorgon LNG volumes were 14.4 cargoes compared to 9 cargoes in Q2 and 8 cargoes in prior year Q3.
- Trading and Inventory Gains
- Trading gains were INR40 crores versus INR19 crores in Q2.
- Inventory gains were INR147 crores.
- Kochi-Mangaluru Pipeline Project
- 250 km section from Coimbatore to Bangalore expected to complete by end of 2022.
- Will connect Kochi terminal to national gas grid.
- Should enable additional gas volumes from Kochi terminal from FY25.
- Bank Guarantees Status
- Bank guarantees being taken for full INR1263 crores of user pay charges.
- Some operators have provided BGs, others in process of providing.
- Settlement agreements also being formally signed.
- Upcoming Projects
- Dahej expansion to 22.5 MTPA by Mar 2025.
- New jetty at Dahej at cost INR1700 crores by 2024.
- Can handle LNG, propane, ethane.
- 2 new LNG tanks at Dahej by Jun 2024.
- FSRU terminal planned at Gopalpur, Odisha.
- Expected to take 3 years for completion.