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Kochi capacity utilisation to increase; scope for further rationalisation: Petronet LNG

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Akshay Kumar Singh, MD and CEO, Petronet LNG spoke to CNBC-TV18 on the road ahead.

Petronet LNG Ltd, India's largest gas importer, reported a 30 percent rise in its December quarter net profit as demand reached pre-COVID levels. The company's net profit in October-December 2020, stood at Rs 878.47 crore, or Rs 5.86 per share, compared with Rs 675.18 crore, or Rs 4.50 a share, in the same period a year back.
Akshay Kumar Singh, MD and CEO, Petronet LNG spoke to CNBC-TV18 on the road ahead.
In terms of Kochi terminal re-gasification charges, he said, “We are right now charging Rs 79 per mmbtu and we feel that this charge will continue to be in that range.”
In Q3, Kochi utilisation was around 20 percent. Going forward he expects this capacity utilisation to increase to 30 percent.
“As on today, when we are operating only at 20 percent and considering that capex and opex of that plant, the re-gas charges were high. However, definitely, when the capacity utilisation increases, there is a scope for further rationalisation and that will definitely increase the overall revenue of the company,” Singh said.
“There was a spurt in spot liquefied natural gas (LNG) prices, also there was some disruption in the LNG liquefaction terminal and the shipping market was also tighter,” he said.
There were some inventory gains as well. The revenue reported by the company is less because of the lower brent prices, he said.
“Our long-term LNG is linked with crude prices. So the average LNG prices for the long-term is lower than the previous year that is the reason our revenue is less,” he added.
Margins are higher because of better capacity utilisation, he mentioned.
For detailed management commentary; watch the video
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