Indian state-run company Petronet LNG reported a 31% fall in its Q1 ended 31 March 2014 net profit. Compared to a net profit of Rs. 245.14 crore in the corresponding quarter of the previous fiscal year, the latest figures show net profit amounting to Rs. 169.3 crore.
Petronet’s total income for Q1 2014 stood at Rs. 10 458.55 crore compared to Rs. 8 487.86 crore for quarter ended 31 March 2013.
The drop in profits was primarily due to the low utilisation of the company’s newly commissioned Kochi LNG Terminal, a receiving, regasification and storage terminal with a capacity of 5 million tpa.
Average utilisation stood at a mere 3.5% and the terminal operated at 1% of its overall, capacity. This was down to a lack of pipelines to take gas to nearby customers in Mangalore and Bangalore.
Petronet are looking to lease 50% of the Kochi LNG Terminal’s storage capacity. Petronet CEO A. K. Balyan said that Gazprom were among those interested.
However, the company’s 10 million tpa receiving terminal at Dahej in Gujarat opearated at a 96% capacity.
Petronet CEO A. K. Balyan said: “Results have accounted for interest (on loans taken to build the Kochi terminal) and depreciation”.
Edited from various sources by Ted Monroe
Read the article online at: https://www.lngindustry.com/regasification/30042014/petronet_records_fall_in_profits_for_q1_ended_31_march_2014/