Petronet LNG reported a 53% surge in Q2 FY27 profit to Rs 1,235 crore, overcoming supply disruptions from the Strait of Hormuz through operational efficiency and alternative arrangements, marking the company’s highest-ever quarterly performance.
Financial Performance and Growth
Petronet LNG Limited reported a 53 per cent year-on-year increase in its net profit to Rs 1,235 crore in the second quarter of FY27, even as the company navigated disruptions in LNG supplies from Qatar amid the ongoing Strait of Hormuz crisis. On the financial front, the company’s profit before tax (PBT) rose 53 per cent to Rs 1,659 crore during the July–September quarter, compared with Rs 1,083 crore in the corresponding period last year. Profit after tax (PAT) increased to Rs 1,235 crore from Rs 806 crore, marking the company’s highest-ever second-quarter PBT and PAT.
For the first half of FY27, Petronet recorded a 43 per cent increase in PAT to Rs 2,368 crore from Rs 1,656 crore a year earlier, while PBT rose to Rs 3,174 crore from Rs 2,219 crore. The company attributed the improvement to commercial and operational efficiency.
Supply Chain Management and Strategy
Amid disruptions in LNG supplies from Qatar due to the ongoing Strait of Hormuz crisis, Petronet LNG Managing Director and CEO Akshay Kumar Singh highlighted the role of alternative supply arrangements in maintaining LNG availability at the company’s terminals. However, addressing a press conference following the announcement of the company’s quarterly results, Singh clarified that while Petronet LNG does not directly procure liquefied natural gas (LNG) from the United States, its long-term capacity holders are sourcing American LNG and bringing it to the company’s terminals for regasification. “We don’t source any LNG from the US. Petronet does not source it directly. However, our long-term capacity holders are sourcing LNG from the US and bringing it to our terminal. We provide regasification services to them, and they market those products,” Singh said in response to ANI’s query.
Procurement Agreements and Future Outlook
Providing details of its LNG procurement arrangements, Singh said Petronet’s long-term agreement with Qatar covers 7.5 million tonnes of LNG and will remain valid until December 2048, including the existing and renewed contracts. The company also has a 1.425 million tonnes per annum LNG supply agreement with ExxonMobil, signed in 2017–18, which Singh said would continue until 2034–35. Another agreement with ExxonMobil Asia Pacific Private Limited covers 1.2 million tonnes, with supplies beginning in 2026 and continuing until 2040–41. Singh said deliveries under this contract have commenced at 50 per cent of the contracted volume and are expected to reach full capacity over the next two to three years.
Referring to the impact of the Strait of Hormuz crisis, Singh said the disruption had affected the availability of LNG under the company’s 7.5-million-tonne Qatar contract. However, additional cargoes arriving at its terminals through other regasification arrangements had helped offset the shortfall. He said supplies under the Australian contract with ExxonMobil remained unaffected and were continuing as scheduled.
Singh further highlighted that various LNG offtakers with booked terminal capacity had signed long-term and medium-term supply agreements covering approximately 10–12 million tonnes over the past one to one-and-a-half years. The company expects these contracted supplies to support terminal utilisation following the expansion of Dahej’s annual regasification capacity from 17.5 million tonnes to 22.5 million tonnes.
During the September quarter, Petronet’s total LNG throughput stood at 231 trillion British thermal units (TBTU), compared with 228 TBTU in the year-ago quarter and 207 TBTU in the preceding quarter. The Dahej terminal processed 216 TBTU of LNG, against 211 TBTU a year earlier. Its capacity utilisation stood at 73 per cent, compared with 92 per cent in the corresponding quarter last year, with the latest calculation reflecting the expanded capacity base. The company’s board also approved an interim dividend of Rs 7 per share.
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