Major LNG supply Supply Company Q1 FY26 Net Profit Falls 25 Per Cent, Announces Rs 6,355 Crore Investment for Odisha Terminal

DSIJ Intelligence-2 / 26 Jul 2025/ Categories: Mindshare, Trending

Major LNG supply Supply Company Q1 FY26 Net Profit Falls 25 Per Cent, Announces Rs 6,355 Crore Investment for Odisha Terminal

On July 25, Petronet LNG shares closed at Rs 301.75, down 0.53 per cent over the past five days, with a trading range between Rs 300.35 and Rs 308.65.

On July 25, 2025, Petronet LNG Limited, India’s largest gas importer, reported a 25 per cent decline in its April–June 2025 quarter net profit to Rs 850.58 crore, down from Rs 1,141.58 crore in the same period last year. The drop was mainly attributed to lower imported LNG volumes due to a fall in power demand following the early arrival of monsoon rains.

During Q1 FY26, the company’s Dahej LNG import terminal in Gujarat handled 207 trillion British thermal units (TBTUs), compared to 248 TBTUs in Q1 FY25. Overall, Petronet processed 220 TBTUs, down from 262 TBTUs a year earlier. Chief Executive A. K. Singh stated that power requirements were lower this year, reducing LNG demand used for electricity generation. Additionally, shutdowns of fertiliser plants contributed to the decline.

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Dahej operated at 92 per cent capacity in Q1, compared to a record 110 per cent in the previous year. However, Singh indicated that operations are back near 100 per cent capacity in the ongoing July–September quarter, supported by rising city gas and petrochemical demand.

Petronet’s board has approved an investment of Rs 6,354.80 crore for a new 5 million-tonne per year land-based LNG terminal at Gopalpur, Odisha, replacing the previously planned 4 million-tonne Floating Storage and Regasification Unit (FSRU). The revised project, with an incremental cost of Rs 4,048.80 crore, is expected to be completed in three years. While capital expenditure increased, operating expenses are estimated to drop significantly to Rs 450–500 crore annually.

Besides Dahej, Petronet operates a 5 million tonnes per year terminal at Kochi, Kerala, which runs below capacity due to limited pipeline connectivity. The company is also seeking a USD 1.4 billion loan to fund the new terminal and its petrochemical plant.

On July 25, Petronet LNG shares closed at Rs 301.75, down 0.53 per cent over the past five days, with a trading range between Rs 300.35 and Rs 308.65.

Disclaimer: The article is for informational purposes only and not investment advice.