Petronet LNG Q2 Results: Profit rises 54% to ₹1,235 crore despite 35% revenue decline amid LNG supply disruption

Petronet LNG Ltd reported a 54% year-on-year increase in consolidated profit after tax (PAT) to ₹1,234.63 crore for the September quarter of FY27, even as revenue from operations declined 34.6% to ₹7,202.22 crore. The increase in profitability was driven by a sharper decline in expenses, particularly the cost of materials consumed.

Total expenses fell 43.2% year-on-year to ₹5,776.99 crore from ₹10,164.19 crore in the corresponding quarter last year. Cost of materials consumed, the company's largest expense item, declined 45.5% to ₹5,145.51 crore from ₹9,449.39 crore.

Profit before tax rose 53.7% to ₹1,658.24 crore, compared with ₹1,078.65 crore a year earlier.

EBITDA, calculated from the consolidated financial results, increased 48.8% to ₹1,661.69 crore from ₹1,116.67 crore. EBITDA margin expanded to 23.1% from 10.1%.

West Asia conflict disrupts Qatar LNG supplies

Petronet said force majeure conditions affecting LNG supplies from Qatar continued through the quarter ended September 30. The company has a long-term agreement with QatarEnergy LNG for the supply of 7.5 million tonnes per annum of LNG.

The conflict, which began on February 28, disrupted maritime navigation through the Strait of Hormuz and LNG loading operations in the region. QatarEnergy delivered a few cargoes during the quarter through alternate voyage charters, the company said.

The operations of Petronet's three dedicated LNG vessels — Disha, Raahi and Aseem — remained suspended from March 2, except for one vessel that was deployed for around seven days in June.

Vessel owners' claims rise to ₹625 crore

The company disclosed that claims by the vessel owners and associated costs stood at ₹625.42 crore, plus applicable taxes, as of September 30, compared with ₹89.30 crore at the end of March.

Petronet said it had not made a provision for the claims as, based on legal advice, it considered them untenable under the respective time charter agreements. The vessel owners have initiated arbitration proceedings, which the company is contesting.

On outstanding use-or-pay dues, Petronet said management remained confident of recovery, as the amounts were contractually obligated. Gross dues stood at ₹408.23 crore, against which the company had made a provision of ₹230.72 crore. The board also declared an interim dividend of ₹7 per equity share of ₹10 face value.

Shares of Petronet LNG Ltd ended 3.96% higher at ₹300.95 apiece on the NSE on Monday. The stock has gained around 7% over the past year, outperforming the Nifty 50, which has declined nearly 9% during the same period.