Petronet LNG Q2 results beat estimates despite revenue decline
The company reported a 49 per cent surge in ebitda, though revenue fell 35 per cent year-on-year due to changes in volume mix.
Petronet LNG reported its September quarter (Q2FY27) results with ebitda rising 49 per cent year-on-year to ₹ 1,663 crore, excluding one-offs, according to a Mint report. This figure exceeded consensus estimates by 10 per cent, supported by higher spot LNG sales and better volumes.
While profit after tax and revenue beat estimates, revenue dropped 35 per cent year-on-year to ₹ 7,200 crore. This decline was attributed to a shift in the volume mix, involving fewer sales of gas procured by the company and more business through tolling arrangements where customers procure their own LNG.
Management stated that profitability was aided by trading and inventory gains of ₹ 668 crore in Q2FY27, up from ₹ 41 crore a year ago. However, Antique Stock Broking noted that core ebitda, excluding these gains, fell 8 per cent year-on-year to ₹ 1,130 crore.
Total gas volumes processed grew 12 per cent sequentially to 231 trillion British thermal units (TBtu). Higher imports from the US, Oman, and African nations offset lower supplies from the UAE and Qatar.
The Dahej terminal capacity utilisation reached 94 per cent in Q2FY27, up from 84 per cent in Q1FY27. Conversely, the Kochi terminal operated at 23 per cent capacity due to delays with the Kochi-Bengaluru gas pipeline, which is now expected to be commissioned by the end of FY27.
Elara Securities (India) said earnings remain highly dependent on volatile trading and optimization gains. The firm noted that slower capacity bookings at the expanded Dahej terminal and prolonged Qatar force majeure could impact volume growth.