Lower margin hits Petronet profit

The company on Tuesday said it might bring in a strategic partner for its upcoming Rs 5,000-cr 10-million-tonne Gangavaram LNG terminal in AP

Petronet LNG’s net profit for the first quarter ended June was Rs 225 crore, down 17 per cent from Rs 271 crore in the year-ago period. Volume regasified during the quarter was 129.5 trillion British thermal units, leading to a turnover of Rs 8,444 crore, a 20 per cent increase over the year-ago period.

“The decrease in net profit is mainly on account of lower margins and increase in internal consumption in plant,” A K Balyan, managing director and chief executive, said. The company on Tuesday said it might bring in a strategic partner for its upcoming Rs 5,000-crore 10-million-tonne Gangavaram LNG terminal in Andhra Pradesh.

“We would keep about 74 per cent of the equity with us. About eight per cent would be with the Gangavaram port. We are open to bringing in a strategic partner who can take a share of about 10 to 15 per cent of the remaining 18 per cent or even the full remaining stake,” he said.