Q1 2027 Petronet LNG Ltd Earnings Call

August 13, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to PetroNet LNG Limited Q1 FY27 earnings conference call. Hosted by Dollard Capital Market Private Limited. As a reminder, all participants' lines will be listen-only mode, and there will be an opportunity for you to ask questions after the presentation continues.

Operator: Ladies and gentlemen, good day and welcome to Petronet LNG Limited Q1 FY27 earnings conference call hosted by Dolat Capital Market Private Limited. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Yogesh Patil from Dolat Capital. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to Petronet LNG Limited Q1 FY 2027 earnings conference call hosted by Dolat Capital Market Private Limited. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Yogesh Patil from Dolat Capital. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal and update us by pressing star and zero on your touchstone phone. Please note that this conference is being recorded, and I now hand over the conference to Mr. Yogesh Patel from Dollard Capital.

Speaker #1: Thank you, and over to you, sir.

Speaker #2: Thank you, Pariv. And good day to everyone. It's my pleasure to welcome all the participants on this call, as well as the the first quarter FY27 results conference call.

Yogesh Patil [Director: Thank you, Pari, and good day to everyone. It's my pleasure to welcome all the participants on this call, as well as the Petronet LNG senior management for the first quarter FY27 results conference call. With us, we have Mr. Saurav Mitra, Director of Finance and CFO. Mr. Rakesh Chawla, Executive Director, Finance and Accounts. Mr. Gyanendra Kumar Sharma, CGM and President, Marketing. Mr. Vivek Mittal, CGM and President, Marketing. Mr. Debabrata Satpathy, CGM and President, Vice President, Finance and Accounts. Mr. Vikash Maheswari, General

Yogesh Patil: Thank you, Pari, and good day to everyone. It's my pleasure to welcome all the participants on this call, as well as the Petronet LNG senior management for the first quarter FY 2027 results conference call. With us, we have Mr. Saurav Mitra, Director of Finance and Chief Financial Officer. Mr. Rakesh Chawla, Executive Director, Finance and Accounts. Mr. Gyanendra Kumar Sharma, CGM and President, Marketing. Mr. Vivek Mittal, CGM and President, Marketing. Mr. Debabrata Satpathy, CGM and President, Vice President, Finance and Accounts. Mr. Vikash Maheswari, General.

Speaker #2: With us, we have Mr. Saurav Mitra, Director of Finance and CFO, Mr. Rakesh Chawla, Executive Director, Finance and Accounts, Mr. Gyanendra Kumar Sharma, CGM and President, Marketing, Mr. Vivek Mittal, CGM and President, Marketing, Mr. Debrata Satpati, CGM and President, Vice President, Finance and Accounts, Mr. Vikas Maheshwari, General,

Speaker #1: Ladies and gentlemen, the line for the Yogesh sir has been disconnected. Please stay connected. Meanwhile, I have joined them. Thank you for waiting patiently.

Operator: Ladies and gentlemen, the line for Yogesh sir has been disconnected. Please stay connected while I join them. Thank you for waiting patiently. The line for Yogesh sir has been joined. Please proceed with your remarks, sir.

Speaker #1: The line for Yogesh sir has been joined. Please proceed with your remarks, sir.

Speaker #2: I request Mr. Saurav Mitra to deliver his opening remarks over to you, sir.

Yogesh Patil [Director: I request Mr. Saurav Mitra to deliver his opening remarks. Over to you, sir.

Yogesh Patil: I request Mr. Saurav Mitra to deliver his opening remarks. Over to you, sir.

Speaker #3: So, at the outset, let me briefly take you through our financial and operating performance. For the first quarter of financial year, 2026 and 2027, overall I would say it has been a strong start to the year, while volumes were somewhat lower.

Saurav Mitra: At the outset, let me briefly take you through our financial and operating performance for Q1 of financial year 2026 and 2027. Overall, I would say it has been a strong start to the year. While volumes were somewhat lower, we have delivered a healthy financial performance supported by commercial and operational efficiencies. On a standalone basis, profit before tax stood at INR 1,514 crore compared to INR 1,136 crore in the corresponding quarter, registering a growth of 33%. Profit after tax was INR 1,133 crore. Again, a growth of 33% compared to INR 851 crore in the corresponding quarter. On a consolidated basis, too, the performance has been quite encouraging. We reported PBT of INR 1,491 crore and a PAT of INR 1,137 crore, our highest ever PBT and PAT for any first quarter.

Speaker #3: We have delivered a healthy financial performance, supported by commercial and operational efficiencies. On a standalone basis, profit before tax to that rupees 1,514 crore, compared to rupees 1,136 crore in the corresponding quarter, registering a growth of 33%.

Speaker #3: Profit after tax was rupees 1,133 crore, again a growth of 33%, compared to rupees 851 crore in the corresponding quarter. On a consolidated basis too, the performance has been quite encouraging.

Speaker #3: We reported EBITDA of rupees 1,491 crore, and PACR of rupees 1,137 crore, our highest ever EBITDA and PACR for any first quarter. Coming to the operational performance, the hedge our flagship terminal processed 192 TB2 of LNG during the quarter, compared to 207 TB2 in the corresponding quarter last year, and 201 TB2 in the previous quarter.

Saurav Mitra: Coming to the operational performance, Dahej, our flagship terminal, processed 192 TBtu of LNG during the quarter, compared to 207 TBtu in the corresponding quarter last year and 201 TBtu in the previous quarter. At the company level, the overall LNG volume processed was 207 TBtu, compared to 220 TBtu in the corresponding quarter and 219 TBtu in the previous quarter. As far as capacity utilization is concerned, there is an important point to keep in perspective. For the current quarter, the nameplate capacity of Dahej increased from 17.5 MMTPA to 22.5 MMTPA. The utilization numbers now reflect a significantly larger capacity base. On this expanded capacity, Dahej utilization stood at 66%, compared to 92% in the corresponding quarter and 90% in the previous quarter. Overall company capacity utilization in the current quarter was 58%, compared to 76% in both the corresponding and previous quarters.

Speaker #3: At the company level, the overall LNG volume processed was 207 TB2, compared to 220 TB2 in the corresponding quarter and 219 TB2 in the previous quarter.

Speaker #3: As far as capacity utilization is concerned, there is an important point to keep in perspective. For the current quarter, the nameplate capacity of the hedge increased from 17.5 MMTPA to 22.5 MMTPA.

Speaker #3: So the utilization numbers now reflect a significantly larger capacity base. On this expanded capacity, the hedge utilization stood at 66%, compared to 92% in the corresponding quarter and 90% in the previous quarter.

Speaker #3: Overall company utilized capacity utilization in the current quarter was 58%, compared to 76% in both the corresponding and previous quarters. So if I were to sum up the quarter, the key takeaways for us is the resilience of the business.

Saurav Mitra: If I were to sum up the quarter, the key takeaways for us is the resilience of the business. Despite lower volumes, we have achieved 33% year-on-year growth in both standalone PBT and PAT. This reflects our continued focus on commercial and operational efficiency and our ability to deliver a strong financial performance across different market conditions. We remain focused on carrying this momentum forward as we progress through the year. With that, I will conclude my opening remarks. We will now be happy to take your questions.

Speaker #3: Despite the lower volumes, we have achieved 33% year-on-year growth in both standalone PBT and PACR, this reflects our continued focus on commercial and operational efficiency, and our ability to deliver a strong financial performance across different market conditions.

Speaker #3: We remain focused on carrying this momentum forward as we progress through the year. With that, I will conclude my opening remarks. We'll now be happy to take your questions.

Speaker #1: Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, please wait for a moment while the question queue assembles. The first question is from the line of Prabal Sen from ICICI Securities. Please proceed with your question.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Prabhal Sen from ICICI Securities.

Speaker #1: Please proceed with your questions.

Speaker #4: Thank you, and very good evening, sir. I had a couple of questions. Firstly, what you mentioned about the financial performance being strong despite lower volumes, what has also been interesting is that the mix of volumes has changed quite dramatically, which is term volumes declining very sharply, and third-party re-gas volumes making the difference.

Probal Sen: Thank you, and very good evening, sir. I have got a couple of questions. Firstly, what you mentioned about the financial performance being strong despite lower volumes. What has also been interesting is that the mix of volumes has changed quite dramatically with the term volumes declining very sharply and third-party regas volumes making the difference. Just wanted to understand, has that same pattern been seen in Q2 so far as well? Should we basically assume that this will be the mix moving forward, at least till the Gulf conflict is resolved in any shape or manner? That was my first question.

Speaker #4: I just wanted to understand, has that same pattern been seen in Q2 so far as well, and should we basically assume that this will be the mix moving forward at least till the Gulf conflict is resolved in any shape or manner?

Speaker #4: That was my first question.

Speaker #3: Okay. So yes, the pattern and trend continues as it was in the Q1 of this financial year. Till so far, however, we expect the issues at the Gulf to resolve soon, and the volumes from our long-term contract with Qatar should start immediately or as soon as possible.

Debabrata Satpathy: Well, yes, the pattern and trend continues as it was in the Q1 of this financial year, till so far. However, we expect the issues at the Gulf to resolve soon and the volumes from our long-term contract with Qatar should start immediately or as soon as possible. That is our topmost in the wish list.

Speaker #3: That's our topmost in the wish list.

Speaker #4: Got it, sir. The second question was, sir, with respect to parent margins, you know, in terms of, you know, how we have performed despite lower volumes.

Probal Sen: Got it, sir. The second question was, sir, with respect to apparent margins, in terms of how we have performed despite lower volumes. Just wanted to understand where the margin improvement has come from, whether there is any inventory gain impact for the quarter, or is it basically that marketing margins for even the small amount of spot volumes that we did have actually helped offset the lower volumes? Just your thoughts on that.

Speaker #4: I just wanted to understand where the margin improvement has come from, whether there is any inventory gain impact for the quarter, and, you know, or is it basically that marketing margins or even the small amount of spot volumes that we did have actually helped offset the lower volumes.

Speaker #4: Just your thoughts on that.

Speaker #3: Okay. Prabhal, you have actually answered both the points. There is trading gains, and also there is inventory gains. Inventory gains are at 193 crores, and trading gains are at 301 crores.

Debabrata Satpathy: Well, Sobhan, you have actually answered both the points. There is trading gains and also there is inventory gains.

Debabrata Satpathy: Well, Probal, you have actually answered both the points. There is trading gains and also there is inventory gains.

Probal Sen: Okay.

Debabrata Satpathy: Inventory gains are at INR 193 crore and trading gains are at INR 301 crore. That's exactly because of the higher margin and also higher inventory valuation.

Speaker #3: So that's exactly because of the, I mean, higher margin and also higher inventory valuation.

Probal Sen: But sir, will some of that then normalize in Q2? Is that a fair way to look at it? That this amount, this kind of margin trend may not sustain for the rest of the year.

Speaker #4: But, sir, will some of that then normalize in Q2 instead of fareway to look at it? That this amount is kind of margin trend may not sustain.

Speaker #4: For the rest of the year.

Speaker #3: You see, to answer to your question, whenever the trend has been, that whenever there is a disparity between the long-term and the spot prices, the spot prices are too high, and there is a big gap between the long-term prices and the spot prices, and there is a overall throughput goes down because of that.

Debabrata Satpathy: You see, to answer your question. The trend has been that whenever there is a disparity between the long-term and the spot prices, the spot prices are too high, and there is a big gap between the long-term prices and the spot prices, and the overall throughput goes down because of that. Then what happens is these trading margins kick in. Because the spot prices being high, we have some opportunities in the market to gain from the spot trading. So this can be considered, looking at the last five, six years' trend, this can be considered as the business model of the company.

Speaker #3: Then what happens is these trading margins kick in. Because the spot price is being high, we have some opportunities in the market to gain from the, I mean, from the spot trading.

Speaker #3: So this can be considered, looking at the last five, six years trend, this can be considered as the business model. Of the company.

Speaker #4: Mm-hmm. Understood, sir. If I can squeeze in one last question. Any update you want to share on the last bit of connectivity for the Kochi terminal and any update you can share on the Petchem plant?

Probal Sen: Mm-hmm. Understood, sir. If I can squeeze in one last question. Any update you want to share on the last bit of connectivity for the Kochi terminal, and any update you can share on the Petchem plant? This will be very helpful. Thanks.

Probal Sen: Understood, sir. If I can squeeze in one last question. Any update you want to share on the last bit of connectivity for the Kochi terminal, and any update you can share on the Petchem plant? This will be very helpful. Thanks.

Speaker #4: Please be very helpful. Thanks.

Speaker #3: Okay. So, I'll first start with the Petchem plant. The project is on schedule, and so far as the connectivity with the pipeline with our Kochi terminal is concerned, as for the as far as the latest information that we have, it's still in the by the end of this quarter, it should be mechanically completed.

Debabrata Satpathy: Okay. I will first start with the Petchem plant. The project is on schedule, and so far as the connectivity with the pipeline with our Kochi terminal is concerned, as far as the latest information that we have, by the end of this quarter, it should be mechanically completed. That is the best information that we have as on date.

Speaker #3: That is the best information that we have as on date.

Speaker #4: Understood, sir. Thank you so much for your time. I'll come back if I have more questions. All the best.

Probal Sen: Understood, sir. Thank you so much for your time. I will come back if I have more questions. All the best.

Speaker #1: Thank you. Ladies and gentlemen, if anyone who wishes to ask a question may press star and one now. Thank you. The next question is from the line of Simran Kumari from Narolia Financial Services.

Operator: Thank you. Ladies and gentlemen, if anyone who wishes to ask a question, you press star and 1 now. Thank you. The next question is from the line of Simran Kumari from Nuvama Financial Services. Please proceed with your question.

Operator: Thank you. Ladies and gentlemen, if anyone who wishes to ask a question, you press star and 1 now. Thank you. The next question is from the line of Simran Kumari from Narnolia Financial Services. Please proceed with your question.

Speaker #1: Please proceed with your question.

Speaker #5: Hi, sir. Good evening. My question is related to capacity utilization. Can I get the separate capacity utilization for both the head as well as the Kochi terminal for this quarter?

Simran Kumari: Hi, sir. Good evening. My question is related to capacity utilization. Can we get the separate capacity utilization for both Dahej as well as the Kochi terminal for this quarter? And how would you expect this utilization to trend over the remaining fiscal? That is my first question.

Simran Kumari: Hi, sir. Good evening. My question is related to capacity utilization. Can we get the separate capacity utilization for both Dahej as well as the Kochi terminal for this quarter? How would you expect this utilization to trend over the remaining fiscal? That is my first question.

Speaker #5: And how would you expect these utilization to trend over the remaining fiscal? That's my first question.

Speaker #3: Can we wait? Can so the capacity utilization for the head was 65.62, but we do take note that this is for the expanded capacity which got expanded on 31st of March 2026.

Debabrata Satpathy: Naveen, you can. So the capacity utilization for Dahej was 65.62%, but please do take note that this is for the expanded capacity which got expanded on 31 March 2026. So from 22.5 MMT, the capacity utilization is 65.6%, and Kochi was 23.37%.

Speaker #3: So from 22.5% MMTT, the capacity utilization is 65.6%. And Kochi was 23.27%.

Speaker #5: And how do you how do you expect the trajectory for the remaining of the fiscal year?

Simran Kumari: How do you expect the trajectory for the remaining of this fiscal year?

Speaker #3: You see, all these will depend only opening up the state of almost. Right now, whatever capacity utilization has been told, same kind of trend is right now going on, as we have told before.

Debabrata Satpathy: You see, all this will depend on the opening of the Strait of Hormuz. Right now, whatever capacity utilization has been told, same kind of trend is right now going on as we have told before. Once the Strait of Hormuz opens, then you see this Qatari volume and the volumes from that region will be available in the market. So definitely the capacity. You can see from the volume numbers that currently also, even if that volume is not available from the Gulf region, still more than two-third of that is being compensated from other parts of the world. So once those volumes are available, definitely the capacity utilization will improve quite a bit. Just to add on to what Debabrata mentioned, actually in this quarter, April was on the lower side. May, June things picked up.

Speaker #3: Once the state of almost opens, then you see this Qatari volumes and the volumes from. Result will be available. So definitely, the capacity and you can see from the volume numbers that currently also even if that volume is not available, the from the Gulf region, still more than two-third of that is being compensated from other parts of the world.

Speaker #3: So once those volumes are available, definitely the capacity utilization will improve quite a bit. And just to add on to what Devika mentioned, that actually in this quarter, the April was on the lower side, May-June things picked up.

Speaker #3: So we are actually running at the same rate at which May at which was in May and June. So this means that probably it should be better slightly.

Debabrata Satpathy: We are actually running at the same rate as it was in May and June. So the same sector, probably it should be better slightly.

Speaker #5: Okay. Can I get the CAPEX number for FY27 as well as FY28?

Simran Kumari: Okay. Can I get the CapEx number for FY27 as well as FY28?

Simran Kumari: Okay. Can I get the CapEx number for FY 2027 as well as FY28?

Speaker #3: CAPEX, yes. CAPEX numbers so far, so far it is.

Debabrata Satpathy: CapEx numbers so far. So far it is-

Speaker #5: No, no, not so far. For fiscal 27 and 28.

Simran Kumari: No, not so far. For fiscal 2027 and 2028.

Speaker #3: Okay. FY27, the CAPEX numbers are 9,064 crores we have budgeted. Budgeted.

Debabrata Satpathy: Okay. FY27, the CapEx numbers are INR 9,064 crores we have budgeted.

Debabrata Satpathy: Okay. FY 2027, the CapEx numbers are INR 9,064 crores we have budgeted.

Speaker #5: Mm-hmm.

Speaker #3: And similar kind of numbers should be for FY28 as well.

Debabrata Satpathy: And similar kind of numbers should be for FY28 as well.

Speaker #5: Can I squeeze in one last question which is related to gross margins? Could you just walk us through the key drivers behind this improvement and what level of gross margin is.

Simran Kumari: Can I squeeze in one last question, which is related to gross margin? Could you just walk us through the key driver behind this improvement, and what level of gross margin is sustainable going forward? That's my last question.

Debabrata Satpathy: Can you repeat the question? Which was the question again?

Speaker #3: Can you can you repeat the question?

Simran Kumari: Gross margin. What was the reason behind this significant improvement in the gross margin this quarter, and how it will sustain for the remainder of this fiscal?

Speaker #5: Gross margin. What was the reason behind this significant improvement in the gross margin this quarter? And how it will, like, sustain for the remainder of this fiscal year?

Speaker #3: You see, that's what I had already answered to proposed question. The gross margin improvement is because of the trading and inventory gain and in the coming time also, if this such kind of situation in the market is there, whereas the spot prices are higher and higher than the long-term prices, by quite a by quite a few distance, then this kind of trend could be there.

Debabrata Satpathy: See, that's what I had already answered Prabal's question. The gross margin improvement is because of the trading and inventory gain. In the coming time also, if such kind of situation in the market is there, whereas the spot prices are higher than the long-term prices by quite a few rupees, then this kind of trend could be there. The volume mix that we are seeing right now, like the trading has gone down, whereas our tolling volumes have gone up, and more than two-third has been recovered from the tolling volumes only. If this kind of trend is continued, then the gross margin will definitely show greater trading gain and inventory gain. Because that is last 5 years trend we have seen in these kind of situations, that is the business model that kicks in.

Speaker #3: I mean, with this kind of and the mix the volume mix that we are seeing right now. Between the like the trading has gone down, whereas our trolling volumes have gone up.

Speaker #3: And more than two-third has been recovered from the trolling volumes only. So if this kind of trend is continued, then the gross margin will definitely show greater trading gain and inventory gain.

Speaker #3: Because that is last five years trend we have seen in these kind of situations that is the business model that kicks in.

Speaker #5: Okay, sir. Thank you so much. And all the best.

Simran Kumari: Okay, sir. Thank you so much. I will remain.

Speaker #1: Thank you. The next question is from the line of Nitin Tiwari from Philips Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Nitin Tiwari from PhillipCapital. Please proceed with your question.

Speaker #4: Hi, sir. Good evening. Thanks for the opportunity, sir. Sir, a couple of clarificatory questions. So in this quarter, like, you know, the trolling cargoes were brought in to offset our long-term cargoes.

Nitin Tiwari: Hi, sir. Good evening. Thanks for the opportunity, sir. Sir, a couple of clarificatory questions. In this quarter, the tolling cargoes were brought in to offset our long-term cargoes. Our arrangement for basically the use-or-pay for the previous years has actually been that, if excess cargoes come in, then it will be used for offsetting that use-or-pay. Would this tolling cargo be treated as an offset for use-or-pay? Because this is in excess of what probably one would have expected. It's coming in lieu of the long-term contract. Is that the right understanding?

Speaker #4: And our arrangement for basically the use of pay for the previous years has actually been that, like, you know, if excess cargoes come in, then it will be used for offsetting that use of pay.

Speaker #4: So would this trolling cargo be treated as an offset for use of pay? Because this is an excess of what probably one would have expected it's coming in lieu of the long-term contract.

Speaker #4: Is that the right understanding?

Debabrata Satpathy: Nitin, you are right partly because, see, firstly, we must understand, it depends on who is bringing those long-term cargoes. If GAIL is bringing, they had no use-or-pay. Then there is no question of offset against GAIL cargo. But yes, for other off-takers, if they are bringing additional cargoes, there would be some offset. But to clarify that the order of importance is the current year's commitment. After that only they can offset.

Speaker #3: Within your right partly, because see, firstly, we must understand it depends on whose who is bringing those long-term cargoes. So if Yale is bringing, they had no use of it.

Speaker #3: So then there is no question of offset against Yale cargo. But yes, for other obstacles, if they are bringing additional cargo, there would be some offset.

Speaker #4: But to clarify, that the order order of I mean, importance is the current year's commitment. After that only, they they can offset. So current year commitment, would basically be considered I mean, the increase the higher number would only be considered after considering long-term plus trolling as current year commitment is what you're saying.

Nitin Tiwari: Current year commitment would basically be considered. The higher number would only be considered after considering long-term plus tolling as current year commitment, is what you are saying?

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Speaker #3: For trolling itself, see, if you if they are bringing more in the trolling, then the order of importance is first the current year's commitment.

Debabrata Satpathy: For tolling itself, see, if they are bringing more in the tolling, then the order of importance is first the current year's commitment. They have to exhaust that, then only.

Speaker #3: They have to adjust that. Then only. Any offset for the past year will be taken.

Nitin Tiwari: Okay

Debabrata Satpathy: Any offset for the past year will be taken.

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Nitin Tiwari: Right, sir. Just drilling down further on this. Long-term contract is not a part of that arrangement, right?

Speaker #4: Right, sir. I'm just, like, you know, just drilling down further on this. So, sir, yeah, basically, Joe, cargoes and trolling के लिए मंगा रहे हैं, right?

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[Company Representative] (Petronet LNG): Whereas our tolling volumes have gone up, more than two-third has been recovered from the tolling volumes only. If this kind of trend is continuing, then the gross margin will definitely show greater trading gain and inventory gain. Because that is last five years trend we have seen in this kind of situation, that is the business model that kicks in.

Speaker #4: Vera, our tooling volumes have gone up, and more than two-thirds have been recovered from the tooling volumes only. So, if this kind of trend continues, then the gross margin will definitely show greater trading gain and inventory gain.

Speaker #4: वही वही cargo consider किया जाएगा for offsetting use of pay, right? Long-term contract is not a part of that arrangement, right? So if if.

Speaker #3: Yes. Yes, your understanding. Your understanding is correct. Long-term contract, as far as FY and Sally is concerned, that's a separate contract, right? They go through clauses earlier, not use of pay.

Debabrata Satpathy: Yes. Your understanding is correct. Long-term contract as far as the buyer and seller is concerned, that is a separate contract. They take care of the cargoes out there, not user pay.

Speaker #4: Because that is a last 5-year trend we have seen in these kind of situations, that is the business model that keeps in.

Speaker #4: Okay. Okay. Okay. So in a way, this is the correct understanding that, like, you know, if this situation continues, then this this trolling cargo, which is coming in, can retire the use of pay much faster than possibly we should otherwise have been possible?

Nitin Tiwari: Okay. In a way, is this the correct understanding that, if this situation continues, then this tolling cargo which is coming in can retire the user pay much faster than possibly should otherwise have been possible?

Speaker #2: Okay, sir. Thank you so much. We're now on the board.

Operator: Okay, sir. Thank you so much. I now hand it over. Thank you. The next question is from the line of Nitin Tiwari from PhillipCapital. Please proceed with your question.

Speaker #1: Thank you. The next question is from the line of Nitin Tiwari from Philip Capital. Please proceed with your question.

Speaker #3: Absolutely.

Debabrata Satpathy: Absolutely. Depending on what kind of user pay. That is the only caveat I would add.

Speaker #4: Depending on what kind of use of pay, that's the only caveat I would add. Understood, sir. And, sir, second question is the bookkeeping. Even if you can give me the India's impact for for this quarter.

Speaker #5: Hi, sir. Good evening. Thanks for the opportunity, sir. Sir, a couple of clarificatory questions. So in this quarter, the tooling cargoes were brought in to offset our long-term cargoes.

Nitin Tiwari: Hi, sir. Good evening. Thanks for the opportunity, sir. Sir, a couple of mandatory questions. In this quarter, the tolling cargoes were brought in to offset our long-term cargoes, and our arrangement for basically the use-or-pay for the previous years has actually been that, if excess cargoes come in, then it will be used for offsetting that use-or-pay. Would this tolling cargo be treated as an offset for use-or-pay because this is in excess of what probably one would have expected it is coming in lieu of the long-term contract. Is that the right understanding?

Nitin Tiwari: Understood, sir. Second question is the bookkeeping one, if you can give me the impact for this quarter at gross margin, efficient, and in other summaries.

Speaker #4: Gross margin depreciation and other in other subjects.

Debabrata Satpathy: At gross margin level, positive is INR 14 crores, Forex loss is INR 5 crores, and other expenses level, positive INR 8 crores. In depreciation, INR 66 crores, and finance cost, INR 48 crores.

Speaker #3: Actually, gross margin level positive is 14 crores. And forex loss is 5 crores. And other expenses level positive 8 crores. Then depreciation 66 crores.

Speaker #5: And our arrangement for basically the use of pay for the previous years has actually been that if excess cargoes come in, then it will be used for offsetting that use of pay.

Speaker #5: So would this tooling cargo be treated as an offset for use of pay? Because this is in excess of what probably one would have expected.

Speaker #3: And finance cost 48 crores.

Nitin Tiwari: Understood, sir. Thanks so much, sir. I will get back in the queue.

Speaker #4: Understood, sir. Thanks so much, sir. I'll get back in the queue.

Speaker #5: It's coming in view of the long-term contract. Is that the right understanding?

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star and one now. The next question is from the line of Mayanth Maheshwari from Morgan Stanley.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 now. The next question is from the line of Mayank Maheshwari from Morgan Stanley. Please proceed with your question.

Speaker #4: Nitin, you're right, partly. Because, see, firstly, we must understand it depends on who is bringing those long-term cargoes. So, it's really about who is bringing them; they had no use or pay.

[Company Representative] (Petronet LNG): Nitin, you are right partly because, see, firstly, it depends on who is bringing those long-term cargoes. If GAIL is bringing, they had no use-or-pay, then there is no question of offset against GAIL cargoes. But yes, for other off-takers, if they are bringing additional cargoes, there will be some offset.

Speaker #4: So then there is no question of offset against green cargo. But yes, for other offsetters, they are bringing additional cargo. They would be some offset.

Speaker #1: Please proceed with your question.

Mayank Maheshwari: Hi, sir. Thank you for doing the call. The first question was related to Qatar LNG on a more medium-term basis. What are you hearing in terms of the supply cargo? Obviously, it is a bit of a fluid situation. Considering the force majeure, et cetera, how are you thinking about sourcing these cargos from elsewhere, as well as what are you hearing from Qatar in general around when can they think about delivering some of these volumes?

Speaker #4: Hi, sir. Thank you for doing the call. The first question was related to Qatar LNG, more on a more medium-term basis. What are you kind of hearing in terms of the supply cargo?

Speaker #4: That's to clarify that the order of, I mean, importance is the current year's commitment. After that only, they can offset.

Nitin Tiwari: Uh-

[Company Representative] (Petronet LNG): But to clarify that the order of importance is the current year's commitment. After that only they can offset.

Speaker #4: Obviously, it's a bit of fluid situation. But considering the force majeure, etc., how are you kind of thinking about sourcing these cargoes from elsewhere as well as what are you hearing from Qatar in general around when can they kind of think about delivering some of these volumes?

Speaker #5: Oh, so current year commitment would basically be considered—I mean, the higher number would only be considered after factoring in long-term plus tooling as current year commitment, is what you're saying.

Speaker #4: For tooling itself, see, if they are bringing more in the tooling, then the order of importance is first the current year commitment. They have to exhaust that.

[Company Representative] (Petronet LNG): For tolling itself, if they are bringing more in the tolling, then the order of importance is first the current year's commitment. They have to exhaust that, then only

Speaker #3: So as far as firstly, I'll answer the second question. So we are in constant touch with Qatar Energy. And they are also waiting for things to improve.

Debabrata Satpathy: Firstly, I will answer the second question. We are in constant touch with QatarEnergy, and they are also waiting for things to improve with Strait of Hormuz. Every day there is change of statement at geopolitical level. Nobody has an answer that when the Strait of Hormuz will open. The moment it opens, Qatar is, if you have seen certain media reports even of yesterday, that Qatar has started production. They are ramping up their production. The measurement they are doing in terms of the heat around the plant, that level is increasing, which means production is increasing. That was a Bloomberg article yesterday. As soon as the Strait of Hormuz is open, we are hopeful that we will start taking volume on FOB basis from Qatar. Mind you, our second question was why are we not sourcing from alternate sources.

Speaker #3: State of formal every day there is change of statement at geopolitical level. So nobody has an answer that when the state of formal will open.

Speaker #4: Then only any offset for the past year will be taken.

Nitin Tiwari: Okay

[Company Representative] (Petronet LNG): any offset for the past year will be taken.

Speaker #5: Right, sir. I'm just drilling down further on this. So, sir, yeah, basically cargoes on tooling के लिए मंगा रहे हैं, right? वही cargo consider किया जाएगा for offsetting use of pay, right?

Nitin Tiwari: Right, sir. Just drilling down further on this. Sir, basically, the cargoes we are importing for tolling, the same cargo will be considered for offsetting use-or-pay, right? Long-term contract is not a part of that arrangement, right?

Speaker #3: But the moment it opens, Qatar is, as you've seen, certain media reports even of yesterday, that Qatar is started production they are ramping up their production the heat the measurement they are doing in terms of the heat around the plant.

Speaker #5: Long-term contract is not a part of that arrangement, right? तो अगर if.

Speaker #3: That level is increasing, which means production is increasing. So that was the Bloomberg article yesterday. So as soon as the state of formal is open, we are hopeful that we will start taking volumes on FOB basis from Qatar.

[Company Representative] (Petronet LNG): Yes. Your understanding is correct. Long-term contract as far as the buyer and seller is concerned, that is separate contract where take-or-pay clauses are there, not use-or-pay.

Speaker #4: Yes. Yes, you're understanding. You're understanding correct. Long-term contract, as far as the finance value is concerned, that's a separate contract where takeover clauses are there, not use of pay.

Speaker #3: And Mayanth, your second question was, why are we not sourcing from alternate sources? So so of course, as you have seen, if we buy and then sell it, there is a certain taxation implication.

Speaker #5: Okay. Okay. So in a way, is this the correct understanding that if this situation continues, then this tooling cargo which is coming in can retire the use of pay much faster than possibly which would otherwise have been possible?

Nitin Tiwari: Okay.

[Company Representative] (Petronet LNG): That is correct.

Debabrata Satpathy: Of course, as you have seen, if we buy and then sell it, there is certain taxation implication. Directly if off-takers or GAIL, IOC, Bharat Petroleum Corporation Limited is importing, that becomes more advantageous and more sellable in the market, so we have to be competitive in the market. From that perspective, we have given the capacity to these capacity holders to bring more volume. FM declaration from Qatar is on month on month basis.

Nitin Tiwari: Is this the correct understanding that if this situation continues, then this tolling cargo which is coming in can retire the use-or-pay much faster than possibly which would otherwise have been possible?

Speaker #3: So directly, if off-taker cost Yale IOC DTCL is importing, that becomes more advantageous and more sellable in the market. So we have to be competitive in the market.

Speaker #4: Absolutely. That's the only caveat I would add.

[Company Representative] (Petronet LNG): Absolutely. Selling on spot to claim use-or-pay. That is the only caveat I would add.

Speaker #3: From that perspective, we have given the capacity to these capacity holders to bring more volumes. And FM declaration from Qatar is on month-on-month basis.

Nitin Tiwari: Understood, sir. The second question is the bookkeeping one. If you can give me the index impact for this quarter at gross margin depletion and in other subjects.

Speaker #5: Understood, sir. And, sir, second question is the bookkeeping one. If you can give me the India's impact for this quarter at gross margin deficiency and other in other subjects.

Speaker #3: So basically, every month, depending on the situation, they are declaring. So right now, it's been declared for end of August.

Debabrata Satpathy: Basically every month, depending on the situation, they are declaring. Right now, it has been declared for end of August.

[Company Representative] (Petronet LNG): At gross margin level, positive is INR 14 crores, and Forex loss is INR 5 crores, and other expenses level positive INR 8 crores. In depreciation, INR 66 crores, and finance cost INR 48 crores.

Speaker #4: At gross margin level, positive is 14 crores. And forex loss is 5 crores. And other expenses level, positive 8 crores. And depreciation 66 crores.

Speaker #4: Sure. And the second question in terms of petrochemicals, was, like, what percentage of your capex has been spent on petrochemicals till now? And in terms of completion, on the physical side, how much has you been able to complete that?

Mayank Maheshwari: Sure. The second question in terms of petrochemicals, was what percentage of your CapEx has been spent on petrochemicals till now? In terms of completion on the physical side, how much have you been able to complete that?

Speaker #4: And finance loss 48 crores.

Nitin Tiwari: Understood, sir. Thanks so much, sir. I will get back into this.

Speaker #5: Understood, sir. Thank you very much, sir. I'll get back to you.

Speaker #3: Okay. So we are as I have told, we are on track with our project petrochemical project. And as per the schedule, we have completed about 40 percent.

Debabrata Satpathy: Okay. As I have told, we are on track with our petrochemical project. As per the schedule, we have completed about 40%.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star one now. The next question is from the line of Mayanth Maheshwari from Morgan Stanley.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one now. The next question is from the line of Mayank Maheshwari from Morgan Stanley. Please proceed with your question.

Speaker #1: Please proceed with your question.

Mayank Maheshwari: Hi, sir. Thank you for doing the call. The first question was related to QatarEnergy LNG, more on a more medium-term basis. What are you kind of hearing in terms of the supply cargo? Obviously, it is a bit of a fluid situation. But considering the force majeure, et cetera, how are you kind of thinking about sourcing these cargoes from elsewhere as well as what are you hearing from Qatar in general around when can they kind of think about delivering some of these volumes?

Speaker #5: Hi, sir. Thank you for doing the call. The first question was related to Qatar LNG, more on a more medium-term basis. What are you kind of hearing in terms of the supply cargo?

Mayank Maheshwari: The CapEx spend would be roughly about what percentage of this?

Speaker #4: And the capex spent would be roughly about what percentage of this?

Mayank Maheshwari: The CapEx spend would be roughly about what percentage of this?

Speaker #3: So the capex, see, there is always a difference between the capex spent and the physical progress. So financial progress is not exactly it will match with the physical progress.

Debabrata Satpathy: The CapEx, there is always a difference between the CapEx spend and the physical progress. So financial progress is not exactly it will match with the physical progress. That's why I have to give you a proper perspective of the physical progress of the project. I have given you the physical project number.

Speaker #5: Obviously, it's a bit of a fluid situation. But considering the force majeure, etc., how are you kind of thinking about sourcing these cargoes from elsewhere as well as what are you hearing from Qatar in general around when can they kind of think about delivering some of these volumes?

Speaker #3: So that's why I have to give you a proper perspective of the physical progress of the project. I have given you the physical project number.

Speaker #4: So as far as—firstly, I'll answer the second question. We are in constant contact with Qatar LNG, and they are also waiting for things to improve.

[Company Representative] (Petronet LNG): Firstly, I will answer the second question. We are in constant touch with QatarEnergy LNG, and they are also waiting for things to improve. Strait of Hormuz, every day there is change of statements at the political level. Nobody has an answer that when the Strait of Hormuz will open. But the moment it opens, Qatar is, as you have seen certain media reports even of yesterday, that Qatar has started production. They are ramping up their production. The measurement they are doing in terms of the heat around the plant. That level is increasing, which means production is increasing. That was a Bloomberg article yesterday. As soon as the Strait of Hormuz is open, we are hopeful that we will start taking volumes on FOB basis from Qatar. Mayank, your second question was why are we not sourcing from alternate sources?

Speaker #4: Fair enough. Perfect. Okay. Thank you.

Mayank Maheshwari: Fair enough. Perfect. Okay. Thank you.

Speaker #4: The state of form is really there is change of statement at geopolitical level. So nobody has an answer that when the state of form will open.

Speaker #1: Thank you. The next question is from the line of question from Dam Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Kishan from DAM Capital. Please proceed with your question.

Speaker #4: But the moment it opens, Qatar is actually seeing certain media reports even of yesterday that Qatar has started production they are ramping up their production the heat the measurement they are doing in terms of the heat around the plant.

Speaker #4: Hi, sir. Thanks for taking my question. One question from my end, sir. So, sir, at the H, we were we had signed a contract with Deepak Fertilizers where they wherein they were expected to bring in additional cargoes.

[Analyst] (DAM Capital): Hi, sir. Thanks for taking my question. One question from my end, sir. At Dahej, we had signed a contract with Deepak Fertilisers, wherein they were expected to bring in additional cargos. I think around 1.5 million tons per annum. Have those started? Similarly at Kochi, ExxonMobil's volumes were expected to increase. Have those volumes also increased?

Speaker #4: So, that level is increasing, which means production is increasing. That was the Bloomberg article yesterday. As soon as the state of form is open, we are hopeful that we will start taking volumes on FOB basis from Qatar.

Speaker #4: So have those start I think around 0.5 million ton per annum. So have those started? And similarly, at Kochi, we were expected to increase the exxonMobil's volumes were expected to increase.

Speaker #4: And Mayanth, your second question was, why are we not sourcing from alternate sources? So, of course, as you have seen, if we buy and then sell it, there is a certain taxation implication.

Speaker #4: So have those volumes also increased?

Speaker #3: Yes. Both both contracts have actually started taking place. And we have brought in volumes volumes have been brought in by both both the parties.

Debabrata Satpathy: Yes. Both contracts have actually started taking place, and we have brought in volumes. Volumes have been brought in by both the parties under both these contracts.

[Company Representative] (Petronet LNG): Of course, as you have seen, if we buy and sell gas, there is a certain taxation implication. Directly, if off takers or GAIL, IOC, BPCL is importing, that becomes more advantageous and more sellable in the market. We have to be competitive in the market. From that perspective, we are giving the capacity to these capacity holders to bring more volume. FM declaration is on month on month basis.

Speaker #4: So, directly, if offsetters or GLIs to BPCL are importing, that becomes more advantageous and more scalable in the market. So we have to be competitive in the market.

Speaker #3: Under both these contracts.

Speaker #4: Okay. And for the quarter, can you can you quantify how much did Deepak Fertilizer bring in? Was it, like, one cargo, two cargos, or?

Speaker #4: So from that perspective, we have given the capacity to these capacity holders to bring more volumes. And FM declaration, Qatar is on a month-on-month basis.

[Analyst] (DAM Capital): Okay. For the quarter, can you quantify how much did Deepak Fertilisers bring in? Was it one cargo, two cargos, or how much was it?

Speaker #4: How much was it?

Speaker #3: Two cargos. The contract amount till May 2026. So until date, we have got two cargos.

Debabrata Satpathy: Two cargos. The contract is until May 2026, so until date we have got two cargos.

Speaker #4: So basically, every month, depending on the situation, they are declaring. So right now, it's been declared for the end of August.

[Company Representative] (Petronet LNG): Basically every month, depending on the situation, they are declaring. Right now, it has been declared for end of August.

Speaker #4: Okay. Understood. Also, if I could ask one more question. So any update on the tariff discussions that we've been having with our off-takers or or the status quo remains?

[Analyst] (DAM Capital): Okay, understood. Also, if I could ask one more question. Any update on the tariff discussions that we have been having with our off-takers or the status quo remains?

Speaker #5: Okay. And the second question, in terms of petrochemicals, was: What percentage of your capex has been spent on petrochemicals till now? And in terms of completion on the physical side, how much have you been able to complete?

Speaker #3: No. The status quo is there. There is no discussion on the tariff revision.

Debabrata Satpathy: No, the status quo is there. There is no discussion on tariff revision.

Speaker #4: Okay. No discussion on tariff revision, but contract renewal? I mean, nothing is nothing is happened, right?

[Analyst] (DAM Capital): Okay. No discussion on tariff revision, but contract renewal, nothing has happened, right?

Speaker #4: Okay. So we are as I have told, we are on track with our project petrochemical project. And as per the schedule, we have completed about 40%.

[Company Representative] (Petronet LNG): Okay. As I have told, we are on track with our petrochemical project. As per the schedule, we have completed about 40%.

Speaker #3: No, no. We are still in talks. Discussion with our off-takers. And we still have some time. You know, the new contract with Qatar is going to start in the 2028.

Debabrata Satpathy: No, no. We are still in talks and discussion with our off-takers, and we still have some time. The new contract with QatarEnergy is going to start in 2028. Almost on a daily basis, we are meeting with our off-takers and finalizing the terms and conditions.

Speaker #3: So we are on a almost on a daily basis, we are meeting with our off-takers and finalizing the terms and conditions.

Mayank Maheshwari: The CapEx spend would be roughly about what percentage of this?

Speaker #5: And the capex spent would be roughly about what percentage of this?

Speaker #4: So the capex, see, there is always a difference between the capex spent and the physical progress. So financial progress is not exactly it will match with the physical progress.

[Company Representative] (Petronet LNG): The CapEx, see, there is always a difference between the CapEx spend and the physical progress. So financial progress is not exactly going to match with the physical progress. That's why I have to give you a proper perspective of the physical progress of the project. I have given you the physical project number.

Speaker #4: Okay. So if if if you think that you're meeting regularly, so can we expect, like, the closure to happen in a quarter or two then?

[Analyst] (DAM Capital): Okay, so if you think that you are meeting regularly, can we expect the closure to happen in a quarter or two then?

Speaker #3: Yes. We can expect.

Debabrata Satpathy: Yes, you can expect that.

Speaker #4: That's great. That's great. Okay. Thank you.

[Analyst] (DAM Capital): That is great. That is it. Okay. Thank you.

Speaker #4: So that's why I have to give you a proper perspective of the physical progress of the project. I have given you the physical project number.

Speaker #3: We can expect it to happen in the next two to three quarters.

Debabrata Satpathy: We can expect it to happen in the next two to three quarters.

Speaker #4: Two to three quarters. That's great, sir. Thank you.

[Analyst] (DAM Capital): Two to three quarters. That is great, sir. Thank you.

Speaker #1: Thank you. The next question is from the line of Binid Banka from Namura. Please proceed with your question.

Operator: Thank you. The next question is on the line of Vineet Banka from Nomura. Please proceed with your question.

Speaker #5: Very nice. Perfect. Okay. Thank you.

Mayank Maheshwari: Fair enough. Perfect. Okay. Thank you.

Speaker #1: Thank you. The next question is from the line of question from Dam Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Kishan from Dolat Capital Market Private Limited. Please proceed with your question.

Speaker #4: Hi, sir. Thanks for the opportunity. Firstly, on your new purchase contract with Qatar Energy, which is coming up from 2028, so I think the the change.

Vineet Banka: Hi, sir. Thanks for the opportunity. Firstly, on your new purchase contract with QatarEnergy, which is coming up from 2028. So I think the Okay.

Bineet Banka: Hi, sir. Thanks for the opportunity. Firstly, on your new purchase contract with QatarEnergy, which is coming up from 2028. So I think the Okay.

Speaker #5: Hi, sir. Thanks for taking my question. One question from my end, sir. So, sir, at the H, we had signed a contract with Deepak Fertilizers wherein they were expected to bring in additional cargoes.

[Analyst] (DAM Capital Advisors): Hi, sir. Thanks for taking my question. One question from my end, sir. At Dahej, we have signed a contract with Deepak Fertilisers and Petrochemicals Corporation Ltd wherein they were expected to bring in additional cargoes. I think around 0.5 million ton per annum. Have those started? Similarly, at Kochi, ExxonMobil's volumes were expected to increase. Have those volumes also increased?

Speaker #3: So why is this breaking? Sorry, we can't hear you.

Debabrata Satpathy: Your voice is breaking. Sorry, we can't hear you.

Speaker #5: So have those start I think around 0.5 million ton per annum. So have those started? And similarly, at Kochi, we were expected to increase the exxonMobil's volumes were expected to increase.

Vineet Banka: The new QatarEnergy from 2028, it is based on DES basis rather than FOB earlier. So how does it impact the landed cost of the gas?

Bineet Banka: The new QatarEnergy from 2028, it is based on DES basis rather than FOB earlier. So how does it impact the landed cost of the gas?

Speaker #4: The the the new Qatar Energy from 2028, it is based on DES basis rather than FOB earlier. So how does it impact the landed cost of the gas?

Speaker #5: So have those volumes also increased?

Speaker #4: Yes. Both contracts have actually started taking place, and we have gotten volumes—volumes have been brought in by both the parties under both these contracts.

[Company Representative] (Petronet LNG): Yes. Both contracts have actually started taking place. We have brought in volumes. Volumes have been brought in by both the parties under both these contracts.

Speaker #3: It's a formula-driven price which includes the shipping cost. Of course, we cannot disclose the formula, but it's I'm not sure what you're looking at in in this question.

Debabrata Satpathy: It's a formula-driven price which includes the shipping cost. Of course, we cannot disclose the formula, but I'm not sure what you're looking at in this question.

Speaker #4: That's landed cost.

Vineet Banka: That build in the LNG cost.

Bineet Banka: That build in the LNG cost.

Speaker #5: Okay. And for the quarter, can you can you quantify how much did Deepak Fertilizer bring in? Was it like one cargo, two cargos, or?

[Analyst] (DAM Capital Advisors): Okay. For the quarter, can you quantify how much did Deepak Fertilisers bring in? Was it one cargo, two cargoes, or how much was it?

Speaker #1: Oh, Mr. Banka? We are not able to hear you. Can you please rejoin the queue?

Operator: Mr. Banka, we are not able to hear you. Can you please rejoin the queue?

Speaker #4: Yeah. Two cargos. The contract amount in May 2026, so until date, we have got two cargos.

[Company Representative] (Petronet LNG): Two cargoes. The contract commences in May 2026, so until date we have got two cargoes.

Speaker #4: Okay. Sure. Thank you.

Vineet Banka: Okay, sure. Thank you.

Bineet Banka: Okay, sure. Thank you.

Speaker #1: Thank you. The next question is from the line of Vivekanand from Ambit Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Vivek Anand from Ambit Capital. Please proceed with your question.

Speaker #5: Okay. Understood. Also, if I could ask one more question. So any update on the tariff discussions that we've been having with our offtakers or the status quo remains?

[Analyst] (DAM Capital Advisors): Okay, understood. Also, if I could ask one more question. Any update on the tariff discussions that we have been having with our off takers, or the status quo remains?

Speaker #3: Yeah. Two two questions. Number one is on the on on the capacity that that you have freed up in Qatar because volumes are not coming.

Vivek Anand: Yeah, two questions. Number one is on the capacity that you have freed up in Qatar because volumes are not coming. How much visibility do you have of the offtakers getting volumes, and what is the logical utilization or volume that we should model for Dahej till the time this crisis continues as far as cargo processing goes? That is question one. The second one is on the trading side. If you can explain this trading business and also the circumstances where you are profitable on your trading contracts, and of course, how to think about it incrementally, that would be great. Thank you.

Speaker #4: No, the status quo remains. There is no discussion on tariff revision.

[Company Representative] (Petronet LNG): No, the status quo is there. There is no discussion on tariff revision.

Speaker #3: How much visibility do you have of the off-takers getting volumes and what is the what is the logical utilization or volume that we should model for the H till the time this crisis continues as as far as cargo processing goes?

Speaker #5: Okay. No discussion on tariff revision, but contract renewal. I mean, nothing is nothing has happened, right?

[Analyst] (DAM Capital Advisors): Okay. No discussion on tariff revision, but contract renewal, nothing has happened, right?

Speaker #4: No, no. We are still in process. The discussion with our offtakers. And we still have some time. The new contract with Qatar is going to start in the 2028.

[Company Representative] (Petronet LNG): No, we are still in talks, discussion with our off takers. We still have some time. The new contract with Qatar is going to start in 2028. Almost on a daily basis, we are meeting with our off takers and finalizing the terms and conditions.

Speaker #3: That is question one. And the second one is on the trading side. So if you if you can explain this trading business and also the circumstances where you you are profitable on your trading contracts, and and of course, how to think about it incrementally, that would be great.

Speaker #4: So we are on a almost on a daily basis, we are meeting with our offtakers and finalizing the terms and conditions.

Speaker #5: Okay. So if you think that you're meeting regularly, so can we expect the closure to happen in a quarter or two then?

[Analyst] (DAM Capital Advisors): Okay, so if you are saying that you are meeting regularly, can we expect the closure to happen in a quarter or two then?

Speaker #3: Thank you. So firstly, let me answer on the visibility question. So as you would have seen, Indian gas demand enrollment has been working on it to make sure that all the sectors get a gas in an equitable manner.

Debabrata Satpathy: Firstly, let me answer on the visibility question. As you would have seen, Indian gas demand and government has been working on it to make sure that all the sectors get gas in an equitable manner. In context of that, we do see that if the Qatar FM continues, the replacement volume will continue to flow in at our terminal. We do not see any issue. Having mentioned that FM is a force majeure, it is being declared on month-on-month basis. I cannot say that offtakers are now tying up volume for September, October. They are again tying up on month-on-month basis, depending on the requirement and the replacement volume, whichever, whatever is required. On the trading side.

Speaker #4: Yes. You can expect.

[Company Representative] (Petronet LNG): Yes.

[Analyst] (DAM Capital Advisors): Okay.

[Company Representative] (Petronet LNG): You can expect.

Speaker #5: That's great. That's great. Okay, sir. Thank you.

[Analyst] (DAM Capital Advisors): That's great. Okay, sir. Thank you.

Speaker #4: I can expect it to happen in the next two to three quarters.

[Company Representative] (Petronet LNG): We can expect it to happen in the next two to three quarters.

Speaker #5: Two to three quarters. That's great, sir. Thank you.

[Analyst] (DAM Capital Advisors): Two to three quarters. That's great, sir. Thank you.

Speaker #3: So in in context of that, we do see that if the SM continues, the replacement volumes will continue to flow in at our terminal.

Speaker #1: Thank you. The next question is from the line of Binit Banka from Numara. Please proceed with your question.

Operator: Thank you. The next question is from the line of Vineet Banka from Nomura. Please proceed with your question.

Speaker #3: So we don't see any issue. As we mentioned, that SM is a force majeure is being declared on month-on-month basis. So I cannot say that off-takers are not tying up volume for September, October.

Speaker #5: Hi, sir. Thanks for the opportunity. Firstly, on your new purchase contract with Qatar Energy, which is coming up from 2028, so I think the change

Vineet Banka: Hi, sir. Thanks for the opportunity. Firstly, on your new purchase contract with QatarEnergy, which is coming up from 2028.

Speaker #3: They are tying again tying up on month-on-month basis depending on the requirement and the replacement volumes, whichever whatever is required. On the trading side, I can give you.

Speaker #4: Yeah. On the trading part, as we had explained before, we create efficiencies in the system. And due to that, whenever there are two whenever there is an opportunity, either we serve it from the on the spot basis from these efficiencies, or whenever there is an opportunity, we bring a spot cargo and also cater to the customer's need without taking any I mean.

Vivek Anand: Yes.

Debabrata Satpathy: Yeah, on the trading part, as we had explained before, we create efficiencies in the system. Due to that, whenever there is an opportunity, either we serve it on the spot basis from these efficiencies or whenever there is an opportunity, we bring a spot cargo and also cater to the customer's need without taking any volume or price risk. In this case, as we had explained, that when the spot prices, say, for example, very high and the long-term prices are at a different level, and there is a low throughput from the terminal. At that point in time, with a smaller volume of spot trading also, we can protect the bottom line, taking the advantage of the market. This we have seen since last five or six years. This is an established business model now.

Speaker #4: So, why is this breaking? Sorry, we can't hear you.

[Company Representative] (Petronet LNG): Your voice is breaking. Sorry, we cannot hear you.

Vineet Banka: The new QatarEnergy from 2028, it is based on DES basis rather than FOB earlier. How does it impact the landed cost of the gas?

Speaker #5: The new Qatar Energy from 2028 is based on a DES basis rather than FOB earlier. So how does it impact the landed cost of the gas?

Speaker #4: It's a formula-driven price which includes the shipping cost. Of course, we cannot disclose the formula, but I'm not sure what you're looking at in this question.

[Company Representative] (Petronet LNG): It is a formula-driven price, which includes the shipping cost. Of course, we cannot disclose the formula. I am not sure what we are looking at in this question.

Speaker #4: Volume or price risk. So in this case, as we had explained, that when there is the spot prices say, for example, very high, and the long-term prices are at a different level, and there is a a I mean, low throughput from the terminal, at that point in time, we say smaller number of smaller volume of spot trading also we can protect the bottom line, taking the advantage of the market.

Vineet Banka: That change in landed cost.

Speaker #1: Mr. Ganga, we are not able to hear you. Can you please rejoin the queue?

Operator: Mr. Banka, we are not able to hear you. Can you please rejoin the queue?

Speaker #5: Okay. Sure. Thank you.

Vineet Banka: Okay, sure. Thank you.

Speaker #1: Thank you. The next question is from the line of Vivekanand from Ambit Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Vivek Subbaraman from Ambit Capital. Please proceed with your question.

Speaker #4: This is what is the and this we have seen since last five is six years. This is a established business model now. Okay. Just just a couple of follow-ups.

Speaker #4: Yeah. Two questions. Number one is on the on the capacity that you have freed up in Qatar because volumes are not coming. How much visibility do you have of the offtakers getting volumes and what is the what is the logical utilization or volume that we should model for the H till the time this crisis continues as far as cargo processing goes?

Vivek Subbaraman: Yeah, two questions. Number 1 is on the capacity that you have freed up in Qatar because volumes are not coming. How much visibility do you have of the offtakers getting volumes, and what is the logical utilization or volume that we should model for Dahej till the time this crisis continues, as far as cargo processing goes? That is question 1. The second one is on the trading side. If you can explain this trading business and also the circumstances where you are profitable on your trading contracts and of course, how to think about it incrementally, that would be great. Thank you.

Vivek Anand: Okay. Just a couple of follow-ups. When Qatar is declaring a force majeure, now you said that the status is that till end of month, they will not supply cargos, right? Then, let us say, by when do you find out that, okay, in September you will not get any cargos from Qatar, and then what is the next step? If you can walk me through the process so I can understand better how you are able to then talk to your offtakers and then utilize some of the freed-up capacity because Qatar is not sending you cargos.

Speaker #4: So when when Qatar is declaring a force majeure, now you said that the the status is that till end of month, they will not supply cargoes, right?

Speaker #4: So then you let's say by when do you find out that, okay, in September, you won't get any cargoes from Qatar, and then what is the next step?

Speaker #4: Just to if you can walk me through the process so I can understand better how how you are able to then talk to your off-takers and then utilize some of the freed up capacity because Qatar is not sending you cargoes.

Speaker #4: That is question one. And the second one is on the trading side. So, if you can explain this trading business and also the circumstances where you are profitable on your trading contracts, and, of course, how to think about it incrementally, that would be great.

Speaker #3: So firstly, we are in constant touch with Qatar Energy team. So on a regular basis, we have conversations with them. And typically, they are declaring force majeure at least a week before end of the month.

Debabrata Satpathy: Firstly, we are in constant touch with QatarEnergy team. So on a regular basis we have conversations with them, and typically they are declaring force majeure at least a week before end of the month.

Speaker #4: Thank you. So firstly, let me answer on the visibility question. So as you would have seen, Indian gas demand and government has been working on it to make sure that all the sectors get gas in an equitable manner.

[Company Representative] (Petronet LNG): Firstly, let me answer on the visibility question. As you would have seen, Indian gas demand and volumes have been working on it to make sure that all the sectors get gas in an equitable manner. In context of that, we do see that if the Qatar FM continues, the replacement volumes will continue to flow in at our terminal. We do not see any issue. As we mentioned that FM force majeure is being declared on month-on-month basis, so I cannot say that offtakers are now tying up volume for September, October. They are again tying up on month-on-month basis, depending on the requirement and the replacement volume, whichever, whatever is required. From the trading side, I think, Rajesh?

Speaker #4: Okay. So is that dynamic? Is it you get to know a week before the next month starts that, okay, you have to you have free Qatar?

Vivek Anand: Okay. So it's that dynamic, is it? You get to know a week before the next month starts that, okay, you have free Qatar.

Speaker #4: So in context of that, we do see that if the SM continues, the replacement volumes will continue to flow in at our terminal. So we don't see any issue.

Debabrata Satpathy: Yes.

Speaker #4: And and just to drill further on on the trading trading gains, that you make, is that linked to the spare capacity that you currently have because Qatar is not supplying, or is is that the run rate that you you have been mentioning is is that independent of the spare capacity you have in Qatar, or even otherwise?

Vivek Anand: Just to drill further on the trading gains that you make, is that linked to the spare capacity that you currently have because Qatar is not supplying? Or is that the run rate that you have been mentioning, is that independent of the spare capacity you have in Qatar or even otherwise?

Speaker #4: As you mentioned, SM as a force majeure is being declared on a month-on-month basis. So I cannot say that offtakers are now tying up volumes for September or October.

Speaker #4: They are tying up again on a month-on-month basis depending on the requirement, and the replacement volumes, whichever or whatever is required. On the trading side, I think.

Speaker #5: Yeah. On the trading part, as we had explained before, we create efficiencies in the system. And due to that, whenever there are two whenever there is an opportunity, either we serve it from the on this cost basis from these efficiencies, or whenever there is an opportunity, we bring a spot cargo and also cater to the customers' need without taking any I mean, volume or price risk.

[Company Representative] (Petronet LNG): Yeah, on the trading part, as we had explained before, we create efficiencies in the system. Due to that, whenever there is an opportunity, either we service on the spot basis from these efficiencies, or whenever there is an opportunity, we bring a spot cargo and also cater to the customer's need without taking any volume or price risk. In this case, as we had explained, that when there is the spot prices, say, for example, very high, and the long-term prices are at a different level. There is a low usage on the terminal. At that point in time, with a smaller volume of spot trading also, we can protect the bottom line, taking the advantage of the market. This is what is the, and this we have seen since last 5 or 6 years. This is an established business model now.

Speaker #3: It's it's independent of that. If you see the spot trading, it's only 6 TBTs. So for 6 TBTs or 10 TBTs of something like that of volume, we did not have a spare capacity.

Debabrata Satpathy: It's independent of that. The reason, if you see the spot trading, it's only 6 TBtu. So for 6 TBtu or 10 TBtu of something like that of volume, we need not have a spare capacity. Even in the COVID, aftermath of COVID, and during the Russian-Ukraine conflict also, whenever there is such situation in the market was there, with a very low volume we could generate a higher trading gain. I hope that answers.

Speaker #3: Even in the COVID aftermath of COVID and during the Russian-Krimean conflict also, whenever there is such situation, in the market was there, we say very low volume, we could generate a higher trading gain.

Speaker #5: So in this case, as we had explained, that when there is the spot prices say, for example, very high, and the long-term prices are at a different level, and there is a I mean, low throughput from the terminal, at that point in time, we say smaller number of smaller volume of spot trading also we can put it the bottom line.

Speaker #3: I hope that answers.

Speaker #4: Okay. Understood. Thank you very much.

Vivek Anand: Okay. Understood. Thank you very much. Have a nice day.

Speaker #1: Thank you. Participants who wish to ask a question, may press star and one now. The next question is from the line of Hardik Solanki from ICIC Securities.

Operator: Thank you. Participants who wish to ask a question may press star and 1 now. The next question is from the line of Hardik Solanki from ICICI Securities. Please proceed with your question.

Speaker #1: Please proceed with your question.

Speaker #5: Thanks for the opportunity, sir. Sir, what was the easiest explanation revenue for the quarter, and in term, what is how much service price was?

Hardik Solanki: Thanks very much, sir. What was the regasification revenue for the quarter? And in actual, how much was spent?

Speaker #5: Taking the advantage of the market. This is what is the and this we have seen since last five is six years. This is a established business model now.

Speaker #3: We could only hear your first question. The recalcification revenue is 1,214 crores. And the rest of our rest of the question, we could not hear.

Debabrata Satpathy: We could only hear your first question. The regasification revenue is INR 1,214 crores. The rest of the question we could not hear. Could you repeat that?

Speaker #5: Okay. Just a couple of follow-ups. So when Qatar is declaring a force majeure, now you said that the status is that till end of month, they will not supply cargoes, right?

Vivek Subbaraman: Okay. Just a couple of follow-ups. When Qatar is declaring a force majeure, now you said that the status is that till end of month, they will not supply cargos, right? Then let's say, by when do you find out that, okay, in September you will not get any cargos from Qatar? What is the next step? Just if you can walk me through the process so I can understand better how you are able to then talk to your offtakers and then utilize some of the freed up capacity because Qatar is not sending you cargos.

Speaker #3: Could you repeat that?

Speaker #5: Yeah. So so how much till date have we spent towards the capex?

Hardik Solanki: Yeah. So how much till date have you spent towards the CapEx?

Speaker #5: So then you let's say by when do you find out that, okay, in September, you won't get any cargoes from Qatar? And then what is the next step?

Speaker #3: Capex expenditures. If I fix on it, 79 are you asking about the capex or cumulative? And for which project?

Debabrata Satpathy: CapEx expenditure. 679. Are you asking about the CapEx?

Speaker #5: Just to if you can walk me through the process so I can understand better how you are able to then talk to your offtakers and then utilize some of the freed up capacity because Qatar is not sending you cargoes.

Hardik Solanki: CapEx.

Debabrata Satpathy: In June, or do you want it and for which project?

Speaker #5: I'm talking about capex.

Hardik Solanki: I am talking about CapEx.

Speaker #3: Okay. For the quarter.

Debabrata Satpathy: Okay. For the quarter. For the quarter. CapEx for the quarter is INR 472 crores. INR 470 crores around.

Speaker #5: For the quarter.

Speaker #3: It came for the quarter is 472 crores. 470 crores around.

Speaker #4: So firstly, we are in constant touch with the Qatar Energy team. On a regular basis, we have conversations with them, and typically, they are declaring force majeure at least a week before the end of the month.

[Company Representative] (Petronet LNG): Firstly, we are in constant touch with QatarEnergy team. On a regular basis, we have conversations with them, and typically, they are declaring force majeure at least a week before end of the month.

Speaker #5: Thank you.

Hardik Solanki: Okay. Thank you.

Speaker #5: Okay. So is that dynamics? Is it you get to know a week before the next start that, okay, you have to you have free capacity?

Vivek Subbaraman: Okay. It is that dynamic, is it? You get to a week before the next month starts that-

Speaker #1: Thank you. The next question is from the line of Bineet Banka from Lumura. Please proceed with your question.

Operator: Thank you. The next question is from the line of Vineet Banka from Nomura. Please proceed with your question.

[Company Representative] (Petronet LNG): Usually.

Vivek Subbaraman: -okay, you have free capacity. Okay. Just to drill further on the trading gains that you make, is that linked to the spare capacity that you currently have because Qatar is not supplying? Or is that the run rate that you have been mentioning, is that independent of the spare capacity you have in Qatar or even otherwise?

Speaker #5: And just to drill further on the trading gains that you make, is that linked to the spare capacity that you currently have because Qatar is not supplying, or is that the run rate that you have been mentioning?

Speaker #4: Hi, sir. HDT plant, has there any propane contract being signed already?

Vineet Banka: Hi, sir. For PDH plant, has there any propane contract been signed already?

Bineet Banka: Hi, sir. For PDH plant, has there any propane contract been signed already?

Speaker #3: Okay. Okay. Propane fee propane is a readily available commodity. So from that perspective, I think 2027 will enter to sign the contract. And we may have a mix of both go ahead.

Debabrata Satpathy: Propane is a readily available commodity. From that perspective, I think 2027 we will enter to sign the contract. We may have a mix of Go ahead.

Speaker #5: Is that independent of the spare capacity you have in Qatar, or even otherwise?

[Company Representative] (Petronet LNG): It is independent of that. Because if you see the spot trading, it is only 6 TBTU. For 6 TBTU or 10 TBTU of something like that of volume, we need not have a spare capacity. Even in the COVID, aftermath of COVID, and during the Russian-Ukraine conflict also, whenever there is such situation in the market was there, with a very low volume, we could generate a higher trading gain. I hope that answers.

Speaker #4: It's independent of that. If you see the spot trading, it's only fixed equities. So for fixed equities or 10 equities of something like that of volume, we did not have a spare capacity.

Vineet Banka: This sourcing will basically be mostly coming from the Middle East, right? Saudi CP price.

Speaker #4: For the sourcing, will basically be mostly coming from the Middle East, right? And and Southeast.

Bineet Banka: This sourcing will basically be mostly coming from the Middle East, right? Saudi CP price.

Speaker #3: You have to also have major potential source. So we are exploring all the possible opportunities.

Debabrata Satpathy: We have also a major potential source, so we are exploring all the possible opportunities.

Speaker #4: And and for this project, sir, is there any equity IRA that you had given early? I think in 2023, the number was 30%. So have you done any recalculation based on current pricing?

Vineet Banka: And for this project, sir, is there any equity IRR that you had given earlier? I think in 2023, the number was 30%. So have you done any recalculation based on current pricing?

Bineet Banka: And for this project, sir, is there any equity IRR that you had given earlier? I think in 2023, the number was 30%. So have you done any recalculation based on current pricing?

Speaker #4: Even in the aftermath of COVID, and during the Russian conflict also, whenever there is such a situation in the market, we see very low volume, but we could generate a higher trading gain.

Speaker #3: Bineet, look, see, Bineet, as we had maintained before, we have still to do certain commercial contracts. I mean, couple of contracts we have already done.

Debabrata Satpathy: Vineet, as we had maintained before, we have still to do certain commercial contracts. I mean, couple of contracts we have already done, like the 600 KTPA ethane handling, and this one with Bristol Petroleum for phenolic. But then certain other commercial contracts we have to do. So we have to keep these numbers close to the public for the time being.

Speaker #4: I hope that answers.

Speaker #5: Okay. Understood. Thank you very much.

Vivek Subbaraman: Okay. Understood. Thank you very much. Have a good day.

Speaker #3: Like the 600 KTP of ethane handling. And this one with this deeper phenolics. But then certain other commercial contracts we have to do. So we have to keep these numbers I mean, close to the public for the time being.

Speaker #1: Thank you. Participants who wish to ask a question, they press star and one now. The next question is from the line of Hardik Solanki from ICIC Securities.

Operator: Thank you. Participants who wish to ask a question, may press star and 1 now. The next question is from the line of Hardik Solanki from ICICI Securities. Please proceed with your question.

Speaker #1: Please proceed with your question.

Speaker #5: Okay. Sorry about 3D, sir. So, what was the investigation revenue for the quarter? And in turn, how much service tax was, you know, as well?

Hardik Solanki: Thanks. Good morning, sir. What was the regasification revenue for the quarter? In actual, how much spend was done?

Vineet Banka: And sir, what will be the useful life of the plant? If I have to do the calculation for the profitability, what we could assume the useful life for the PDH plant?

Bineet Banka: And sir, what will be the useful life of the plant? If I have to do the calculation for the profitability, what we could assume the useful life for the PDH plant?

Speaker #4: And sir, what will be the useful life of the plant if I have to do the calculation for the profitability? What do you assume the useful life for the plant?

[Company Representative] (Petronet LNG): We could only hear your first question. The regasification revenue is INR 1,214 crores. The rest of the question we could not hear. Could you repeat that?

Speaker #4: We could only hear your first question. The re-gasification revenue is ₹1,214 crore. And the rest of your question, we could not hear.

Speaker #3: This kind of projects, generally, we generally, people take a 25 years life.

Debabrata Satpathy: These kind of projects, generally, people take a 25 years life.

Speaker #4: Could you repeat that?

Speaker #4: Okay. And sir, another question on the the the the third quarter. From 42D here. If you have from Qatar, what is the use of the energy carriers?

Vineet Banka: Okay. Sir, another question on the call letter from FOB to DES. If you have DES contract from QatarEnergy, what will be the use of the LNG carriers? I think they are there for 25 years at least.

Bineet Banka: Okay. Sir, another question on the call letter from FOB to DES. If you have DES contract from QatarEnergy, what will be the use of the LNG carriers? I think they are there for 25 years at least.

Speaker #5: Yes. So, how much to date have we spent towards the capex?

Hardik Solanki: Yeah. So how much till date have you spent towards the CapEx?

Speaker #4: Capex is 22. If I fix on it, 79 are you asking about the capex or cumulative? I'm talking about. Okay. For the quarter. For the quarter.

[Company Representative] (Petronet LNG): CapEx spend. INR 679. Are you asking about the CapEx?

Speaker #4: Because I think they are they are there for 25 years.

Hardik Solanki: Capex.

[Company Representative] (Petronet LNG): In June, or cumulative? Cumulative.

Speaker #3: So the carriers most of the carriers was the STN, the carrier also time shorter comes to end. Except one.

Debabrata Satpathy: Most of the carriers, once the SPA ends, the carrier also time charter comes to end, except one.

Hardik Solanki: I am talking about CapEx.

[Company Representative] (Petronet LNG): Okay. For the quarter. For the quarter. So scale for the quarter is INR 472 crores. INR 470 crores around.

Speaker #4: It came for the quarter as 472 crores, around 470 crores.

Speaker #4: Okay. Okay, sir. Thank you.

Vineet Banka: Okay. Okay, sir. Thank you.

Bineet Banka: Okay. Okay, sir. Thank you.

Speaker #5: Thank you.

Hardik Solanki: Thank you.

Speaker #1: Thank you. The next question is from the line of TK Nigam from an individual investor. Please proceed with your question.

Operator: Thank you. The next question is from the line of P. K. Nigam from AN Individual Investor. Please proceed with your question.

Speaker #1: Thank you. The next question is from the line of Bineet Banka from Lumura. Please proceed with your question.

Operator: Thank you. The next question is from the line of Vineet Banka from Nomura. Please proceed with your question.

Speaker #6: Hello, sir. Good to talk to you. So can you confirm if my understanding of the business model is correct? So as long as that force major continues, you have the liberty to trade gas at the spot prices.

P. K. Nigam: Hello, sir. Good to talk to you. Can you confirm if my understanding of the business model is correct? As long as that force majeure continues, you have the liberty to trade gas at the spot prices. If that force majeure goes aside and normal business sets in, then you can again start doing business at the contracted prices. Is my understanding correct?

Speaker #5: Hi, sir. Sir, for the HDT plant, has any propane contract been signed already?

Vineet Banka: Hi, sir. For PDH-PP plant, has there any propane contract been signed already?

Speaker #6: And if that force major goes aside and normal business slips in, then you can again start doing business at the contracted prices. Is my understanding correct?

Speaker #4: Okay. Propane fee propane is a readily available commodity. So from that perspective, I think 2027 will enter to sign the contract. And we might have a mix of both go ahead.

[Company Representative] (Petronet LNG): Propane is a readily available commodity. From that perspective, I think 2027 we will enter to sign the contract. We may have a mix of. Go ahead.

Speaker #3: So sorry. See, the contracted volumes, they come in and go to our obstacles on back-to-back basis. The trading business is independent of that. It depends on the market opportunity, the price at which we are buying cargoes, at which we are able to sell.

Debabrata Satpathy: No. See, the contracted volumes, they come in and go. Our ops take care on back-to-back basis. The trading business is independent of that. It depends on the market opportunity, the price at which we are buying cargo, that which we are able to sell. As Debapriyo mentioned, out of operational efficiency, we do have some LNG available, so we trade that also. It is a mix of all, but it is nothing to do with certain contracts.

Speaker #5: So the sourcing will basically be mostly coming from the Middle East, right? And South ECP prices.

Vineet Banka: The sourcing will basically be mostly coming from the Middle East, right? Southeast Asia also.

Speaker #4: You have to answer a major potential source. So, we are exploring all the possible opportunities.

[Company Representative] (Petronet LNG): We also have major potential, so we are exploring all the possible opportunities.

Speaker #3: And as as a mentioned, out of operational efficiency, we do have some LNG available. So we trade that also. So it is a mix of all, but it is nothing to do with Qatar contract.

Speaker #5: And for this project, sir, is there any equity IRA that you had given earlier? I think in 2023, the number was 30%. So have you done any recalculation based on current pricing?

Vineet Banka: For this project, sir, is there any equity IRR that you had given earlier? I think in 2023, the number was 30%. Have you done any recalculation based on current pricing?

Speaker #6: Okay. Okay. Got it. Thank you, sir.

P. K. Nigam: Okay. Got it. Thank you, sir.

Speaker #1: Thank you. The next question is from the line of Nitin Dawari from Philip Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Nitin Tiwari from PhillipCapital. Please proceed with your question.

[Company Representative] (Petronet LNG): Vineet, as we had maintained before, we have still to do certain commercial contracts. A couple of contracts we have already done, like the 600 KTPA of Ethane and this one with BPCL Phenolics. But then certain other commercial contracts we have to do. So we have to keep these numbers close to the public for the time being.

Speaker #4: Vinay, no. See, Vinay, as we had maintained before, we have still to do certain commercial contracts. I mean, couple of contracts we have already done.

Speaker #6: Hi, sir. Thanks for the opportunity again. Sir, just wanted to understand what are our tariffs right now at the age and Kochi. For the current quarter.

Nitin Tiwari: Hi, sir. Thanks for the opportunity again. Sir, just wanted to understand what are our tariffs right now at Dahej and Kochi for the current quarter?

Speaker #4: Like the 600 KTP of Ethane handling. And this one with this depot phenolic. But then certain other commercial contracts we have to do. So we have to keep these numbers I mean, close to the public for the time being.

Speaker #3: So the age is around 69 rupees. And Kochi is around 98 rupees.

Debabrata Satpathy: Dahej is around 69 rupees, and Kochi is around 98 rupees.

Speaker #6: Kochi is 98. Great, sir. And secondly, sir, also I wanted to understand that the basis that we have on time to other basis so I mean, are we paying that the the charter rates or that's also is under the ambit of force major and it's not paid?

Nitin Tiwari: Kochi is 98. Great, sir. Secondly, sir, also, I wanted to understand that the vessels that we have on time charter basis. Are we paying the charter rates or that also is under the ambit of force majeure, and it's not paid? How does that work?

Speaker #5: Okay. And sir, what will be the useful life of the plant if I have to do the calculation for the profitability? What do you assume the useful life for the P&L?

Vineet Banka: And sir, what will be the useful life of the plant? If I have to do the calculation for the profitability, what do you assume the useful life for the PP&E plant?

Speaker #6: How does that work?

[Company Representative] (Petronet LNG): These kind of projects, generally, people take a 25 years life.

Speaker #4: This kind of projects generally we generally people take a 25 years life.

Speaker #3: The understanding is correct. That's also under force major.

Debabrata Satpathy: Your understanding is correct. That's also under force majeure.

Speaker #5: Okay. And sir, another question on the third contract that from 42D, yes. So you already four LNG under English. If you have any comment from Qatar, what is the use of the LNG carriers?

Vineet Banka: Okay. And sir, another question on the Q3 letter from FOB to DES. So you already have, I think, four LNG carriers underneath. If you have deal coming from Qatar, what is the use of the LNG carriers? Because I think they are there for 25 years at least.

Speaker #6: Okay. So we are not paying any charter.

Nitin Tiwari: Okay. We are not paying any charter.

Speaker #3: I would like to clarify. I would like to clarify that all the time charter vessels, we have suspended the operation. As per not under any force major clause, but there are other you know, clauses in the contract, other in the time charter agreements through which we have enabled the suspension.

Debabrata Satpathy: I would like to clarify that all the time charter vessels, we have suspended the operation as per not under any force majeure clause, but there are other clauses in the contract, in the time charter agreements through which we have enabled the suspension.

Speaker #5: Because I think they are there for 25 years.

[Company Representative] (Petronet LNG): Most of the carriers, once the SPA is, the carrier also times have become sold, except one.

Speaker #4: So, most of the carriers were under the SCA. The carrier time is also shorter, coming to an end, except one.

Speaker #6: Got it, sir. Great. Thanks. Thanks for clarification. That's also my end.

Nitin Tiwari: Got it, sir. Great. Thanks for clarification. That is all from my end.

Vineet Banka: Okay, sir. Thank you.

Speaker #5: Okay. Okay. Thank you.

Speaker #1: Thank you. The next question is from the line of TK Nigam from an individual investor. Please proceed with your question.

Speaker #1: Thank you. Before we take the next question, a general general reminder for all the participants. If you wish to ask a question, please press star and one now.

Operator: Thank you. The next question is from the line of TK Nigam from an individual investor. Please proceed with your question.

Operator: Thank you. Before we take the next question, a gentle reminder for all the participants. If you wish to ask a question, please press star and 1 now. The next question is from the line of Jay Shah, an individual investor. Please proceed with your question.

Speaker #6: Hello sir. Good to talk to you. So can you confirm if my understanding of the business model is correct? So as long as that force major continues, you have the liberty to trade gas at the spot prices and if that force major goes aside and normal business kits in, then you can again start doing business at the contracted prices.

TK Nigam: Hello, sir. Good to talk to you. Can you confirm if my understanding of the business model is correct? As long as that force majeure continues, you have the liberty to trade gas at the spot prices, and if that force majeure moves aside and normal business sets in, then you can again start doing business at the contracted prices. Is my understanding correct?

Speaker #1: The next question is from the line of Joy Shah, an individual investor. Please proceed with your question.

Speaker #7: Thanks. Thanks a lot, sir. This opportunity.

Jay Shah: Thanks a lot for this opportunity. Just a quick question, sir. Am I audible?

Speaker #3: So this is good for questions, sir. I hope I'm audible.

Speaker #7: No, your voice is not clear.

Debabrata Satpathy: No, your voice is not clear.

Speaker #6: Is my understanding correct?

Speaker #3: Is it better, sir?

[Company Representative] (Petronet LNG): No. The contracted volumes, they come in and go. Our off-takers on back-to-back basis. The trading business is independent of that. It depends on the market opportunity, the price at which we are buying cargo, at which we are able to sell. As Vineet mentioned, out of operational efficiency, we do have some LNG available, so we trade that also. So it is a mix of all, but it has nothing to do with the third contract.

Jay Shah: Is it better, sir?

Speaker #4: Please the contracted volumes, they come in and go to our optical contract to that basis. The trading business is independent of that. It depends on the market opportunity, the price at which we are buying cargo that which we are able to sell.

Speaker #7: Yes. Slightly better.

Debabrata Satpathy: Yeah, slightly better.

Speaker #3: So I can get through. So you know, so thanks for this opportunity, sir. So my question is, is there anything that must be normal?

Jay Shah: Sure, I can just go. Thank you for this opportunity, sir.

Debabrata Satpathy: Not audible.

Jay Shah: My question is, sir, usually things get back to normal.

Speaker #4: And as I mentioned out of operational efficiency, we do have some LNG available. So we trade that also. So it is a mix of all, but it is nothing to do with certain contracts.

Speaker #7: And not audible.

Nitin Tiwari: Not audible.

Nitin Tiwari: You are not audible.

Speaker #3: Not audible.

Speaker #1: Mr. Joyce, we cannot hear you.

Operator: Mr. Jayesh, we cannot hear you.

Speaker #6: Okay, okay. Got it. Thank you, sir.

TK Nigam: Okay. Got it. Thank you, sir.

Speaker #3: Yeah, sure. I'll mute the phone.

Jay Shah: Yes, sir. I will just.

Speaker #1: Thank you. The next question is from the line of Nitin Davari from Philip Capital. Please proceed with your question.

Speaker #1: Thank you. The next question is from the line of TK Nigam an individual investor. Please proceed with your question.

Operator: Thank you. The next question is from the line of Nitin Tiwari from PhillipCapital. Please proceed with your question.

Operator: Thank you. The next question is from the line of P.K. Nigam.

Operator: P.K. Nigam.

Speaker #6: Hi sir. Thanks for the opportunity again. Sir, just wanted to understand what are our tariffs right now at The Hague and quarter.

Nitin Tiwari: Hi, sir. Thanks for the opportunity again. Sir, just wanted to understand what are our tariffs right now at Dahej and Kochi for the current quarter.

Operator: An individual investor. Please proceed with your question.

Speaker #6: Hello, sir. Can you put some light on how much certainty or how much certain is the sourcing of alternative cargoes till the time this Middle East conflict continues?

P. K. Nigam: Hello, sir. Can you put some light on how much certainty or how much certain is the sourcing of alternative cargoes till the time this Middle East conflict continues?

Speaker #4: So, The Hague is around 69 rupees, and Kochi is around 98 rupees.

[Company Representative] (Petronet LNG): Dahej is around INR 69, and Kochi is around INR 98.

Speaker #6: Kochi is 98. Great sir. And second sir, also I wanted to understand that the basis that we have on time charter basis, so I mean, are we paying that the charter rates or that's also is under the ambit of force Kochi?

Nitin Tiwari: Kochi is INR 98. Great, sir. Second, sir, also, I wanted to understand that the vessels that we have on time charter basis. Are we paying the charter rates or that also is under the ambit of force majeure and it is not paid? How does that work?

Speaker #3: The sourcing is actually being done under the tooling contracts, service contracts by our customers. And as per trend, whatever we are missing from the Middle East actually more than 2/3 is being brought by these customers.

Debabrata Satpathy: The sourcing is actually being done under the tolling contract, service contract by our customer. As per trend, whatever we are missing from the Middle East, actually more than two-third is being brought by this customer. We hope that this trend will continue, and we are seeing that this trend is continuing right now.

Speaker #6: How does that work?

Speaker #3: So we we hope that this will this trend will continue. And we are seeing that this trend is continuing right now.

[Company Representative] (Petronet LNG): Your understanding is correct. That falls under force majeure.

Speaker #4: Understanding is correct. That's also under force major.

Speaker #6: Okay. So we are not paying any charter.

Nitin Tiwari: Okay, so we are not paying any charter.

Speaker #6: Okay, sir. That answers my question. Thank you.

P. K. Nigam: Okay, sir. That answers my question. Thank you, sir.

Speaker #4: I would like to clarify. I would like to So the current clarify that all the time charter vessels, we have suspended the operation as per not under any force major clause, but there are other you know clauses in the contract, other in the time charter agreements.

[Company Representative] (Petronet LNG): I would like to clarify that all the time charter vessels, we have suspended the operation not under any force majeure clause, but there are other clauses in the contract, in the time charter agreements, through which we have enabled the suspension.

Speaker #1: Thank you. Ladies and gentlemen, that was the last question from the participant. I would now like to hand over the conference to management for their closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question from the participant. I would now like to hand over the conference to management for their closing comments. Thank you, and over to you, sir.

Speaker #1: Thank you and over to you, sir.

Speaker #3: Okay. Thank you. Thank you so much for joining us once again. And we will continue to keep in touch through such initiatives. Thank you.

Debabrata Satpathy: Okay. Thank you. Thank you so much for joining us once again, and we will continue to keep in touch through such initiatives. Thank you.

Speaker #4: Through which we have enabled the suspension.

Speaker #3: Thank you. Thank you, everyone.

Yogesh Patil [Director: Thank you.

Yogesh Patil: Thank you.

Saurav Mitra: Thank you, everyone.

Speaker #6: Got it sir. Great sir. Thanks. Thanks for clarification. That's all from my end.

Nitin Tiwari: Got it, sir. Great. Thanks for clarification. That's all from my end.

Speaker #1: Thank you. On behalf of Daulat Capital Market Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.

Operator: Thank you. On behalf of Dolat Capital Market Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Speaker #1: Thank you. Before we take the next question, a gentle reminder for all participants: if you wish to ask a question, please press star and one now.

Operator: Thank you. Before we take the next question, a gentle reminder for all the participants. If you wish to ask a question, please press star and one now. The next question is from the line of Jayesh Shah, an individual investor. Please proceed with your question.

Speaker #1: The next question is from the line of Joy Shah, an individual investor. Please proceed with your question.

Speaker #6: Thanks. Thanks a lot for this opportunity.

Jayesh Shah: Thanks a lot for this opportunity. Just a quick question, sir. I hope I'm audible.

Speaker #4: So that is it for questions sir. I hope I'm audible.

Speaker #6: No, your mic is not clear.

[Company Representative] (Petronet LNG): No, your voice is not clear.

Jayesh Shah: Is it better, sir?

Speaker #4: Is it better sir?

Speaker #6: Yeah. Slightly better.

[Company Representative] (Petronet LNG): Yeah, slightly better.

Speaker #4: Sir, I guess I can get through. So you know thank you for this opportunity sir.

Jayesh Shah: All right. I think it is good. Thank you for this opportunity, sir.

Speaker #6: No.

Speaker #4: What did you say, sir? Is there anything different from normal? Not earlier. Not audible.

[Company Representative] (Petronet LNG): No. Not audible.

Speaker #1: Mr. Jayesh, we cannot hear you.

Operator: Mr. Jayesh, we cannot hear you.

[Company Representative] (Petronet LNG): Yes, I will answer that.

Speaker #4: Yeah. Sure. I'll just.

Speaker #1: Thank you. The next question is from the line of TK Nigam. An individual investor. Please proceed with your question.

Operator: Thank you. The next question is from the line of TK Nigam. An individual investor, please proceed with your question.

Speaker #6: Hello sir. Can you put some light on how much certainty or how much certain is the sourcing of alternative cargoes till the time this Middle East conflict continues?

TK Nigam: Hello, sir. Can you put some light on how much certainty or how much certain is the sourcing of alternative cargoes till the time this Middle East conflict continues?

Speaker #4: The sourcing is actually being done under the tooling contracts and service contracts by our customers. And as per trend, whatever we are missing from the Middle East—actually, more than 230 is being brought by these customers.

[Company Representative] (Petronet LNG): The sourcing is actually being done under the tolling contract, service contract by our customers. As for trends, whatever we are missing from the Middle East, actually more than two-third is being brought by these customers. So we hope that this trend will continue, and we are seeing that this trend is continuing right now.

Speaker #4: So we hope that this trend will continue, and we are seeing that this trend is continuing right now.

Speaker #6: Okay, sir. That answers my question. Thank you, sir.

TK Nigam: Okay, sir. That answers my question. Thank you, sir.

Speaker #1: Thank you. Ladies and gentlemen, that was the last question from the participant. I would now like to hand over the conference to management for their closing comments.

Speaker #1: Thank you and over to you sir.

Speaker #4: Okay. Thank you. Thank you so much for joining us once again. And we will continue to keep in touch through such initiatives. Thank you.

[Company Representative] (Petronet LNG): Okay. Thank you. Thank you so much for joining us once again, and we will continue to keep in touch through such initiatives. Thank you. Thank you. Thank you, everyone.

Speaker #4: Thank you. Thank you everyone.

Operator: Thank you. On behalf of Dolat Capital Market Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Speaker #1: Thank you. On behalf of Dollar Capital Market Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 Petronet LNG Ltd Earnings Call

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