Spur in demand for imported natural gas and adding new customers has helped Petronet LNG Ltd (PLL) to achieve a 112 per cent increase in its net profit at Rs 206 crore during the fourth quarter of 2010-11.
“During the quarter ended March 31, 2011, PLL has operated at its full capacity of around 10 million tonnes per annum (mtpa). The company has reported a turnover of Rs 3,986 crore during the quarter, an increase of over 67 per cent against the same quarter of the previous fiscal,” Mr A.K. Balyan, Managing Director and CEO, Petronet, said.
“There are three reasons for this higher profit. We have done more volume, our re-gasification charge has increased 5 per cent and our internal efficiency has improved.” But he did not give the re-gasification charges citing competition.
For the full fiscal 2010-11, PLL's turnover stood at Rs 13,197 crore, up 24 per cent. The net profit was Rs 620 crore, an increase of around 53 per cent.
In 2010-11 the company's main business came from long-term contracts. PLL got 20 spot cargoes apart from its 7.5-mtpa long-term contract, which it gets from Qatar.
On the future outlook, he said, “We are negotiating with Qatar and some other countries for additional supplies. These could range between 2.5-4 mtpa.”
Further, PLL has also executed a short term-contract for additional 1.5 mtpa LNG for the fiscal 2011-12 and 2012-13. The contract has been signed with Spanish firm Gas Natural. So PLL will get 22 cargoes from the Spanish company – 12 in 2011 and 10 in 2012.
In 2011-12, PLL is looking at getting 10 spot cargoes. On the gas pricing in spot market, he said that it was currently ruling around $11-12/mBtu.
On PLL's plan for setting up an LNG terminal in the East Coast, he said, “We presented a preliminary report to our Board. We have been asked to do more analysis. We are looking at 7-8 locations stretching across the coast.”
With regard to the Kochi terminal, he said, “contract has been awarded for expansion of the terminal from 2.5 mtpa to 5 mtpa. The terminal is expected to be commissioned by the third quarter of the fiscal 2012-13.”
PLL board has recommended a divided of 20 per cent for 2010-11.