Q1 2027 Petronet LNG Ltd Earnings Call

August 13, 2026

Speaker #1: Right dollar capital market private limited. As a reminder, all participant clients will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

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 Patil from Dollar Capital.

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

Speaker #2: 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 Pioneer Management for the first quarter FY 27 result conference call.

Speaker #2: With us, we have Mr. Saurav Mitra, Director of Finance and CFO; Mr. Rakesh Sharma, Executive Director, Finance and Accounts; Mr. Gyanendra Kumar Sharma, CEM and President, Marketing; Mr. Vivek Mittal, CGM and President, Marketing; Mr. Debabrata Satpathy, CGM and President, Vice President, Finance and Accounts; Mr. Vikas Maheshwari, General, Ladies and gentlemen, the line for the Yogesh sir has been disconnected.

Speaker #2: Please stay connected. Meanwhile, I have joined them. Thank you for waiting patiently. 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.

Speaker #3: So, at the outset, let me briefly take you through our financial and operating performance. For the first quarter of financial year, 26 and 27, overall, I would say it has been a strong start to the year.

Speaker #3: 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 to that, rupees 1,514 crore.

Speaker #3: Compared to rupees 1,136 crore in the corresponding quarter, registering a growth of 33%. Profit after tax was rupees 1,133 crore, again a growth of 33% compared to rupees 851 crore in the corresponding quarter.

Speaker #3: On a consolidated basis too, the performance has been quite encouraging. We reported, EBT of rupees 1,491 crore, and the PAT of rupees 1,137 crore.

Speaker #3: Our highest ever EBT and PAT 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.

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 quarter, 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.

Speaker #3: Despite the 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.

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.

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

Speaker #1: Please proceed with your questions.

Speaker #4: Thank you, and very good evening, sir. I've got a couple of questions. Firstly, you mentioned about the financial performance being strong despite lower volumes.

Speaker #4: 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.

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.

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.

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.

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

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, 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.

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 la that the last bit of connectivity for the Kochi terminal, and any update you can share on the Petcam plan?

Speaker #4: Please be very helpful. Thanks.

Speaker #3: Okay. So, I'll first start with the Petcam 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.

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.

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.

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?

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

Speaker #3: Vivek, you can yeah. So the capacity utilization for the head was 65.62, but please do take note that this is for the expanded capacity which got expanded on 31st of March 2026.

Speaker #3: So from 22.5%, MMTT, the capacity utilization is 65.6%. And Kochi was 23.37%.

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

Speaker #3: You see, on this 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.

Speaker #3: once the trade of almost opens, then you see this, Qatari volumes and the volumes from that region will be available in the market. 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 Debabrata 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, May at which was in May and June. So this means that, that, probably it should be better slightly.

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

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

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

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

Speaker #5: Mm-hmm.

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

Speaker #5: 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?

Speaker #5: That's my last question.

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

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 remaining remainder of the fiscal?

Speaker #3: You see, that's what, I had already answered to Probal's question. The gross margin improvement, is because of the trading and inventory gains, 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.

Speaker #3: but with this kind of a-and the mix, the volume mix that we are seeing right now. Between the tra like the trading has gone down, whereas our tooling volumes have gone up.

Speaker #3: And, more than two-third has been recovered from the to-tooling 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.

Speaker #1: Thank you. The next question is from the line of Nitin Tiwari from Philips Capital. 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, the, the tooling cargoes were brought in to offset, our long-term cargoes.

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, tooling cargo be treated as, an offset for use of pay? Because this is an excess of what probably one would have expected.

Speaker #4: It's coming in lieu of the long-term contract. Is that, the right understanding?

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 cargoes, 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 can offset. so current year commitment, would basically, be considered I mean, the incre the higher number would only be considered after considering long-term plus tooling as current year commitment is what you're saying.

Speaker #3: No. For tooling itself, see, if you if they are bringing more in the tooling, then the order of the importance is first the, current year's commitment.

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

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

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

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

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

Speaker #3: Absolutely.

Speaker #4: Depending on the fact you had use of pay, that's the only caveat I would add. Understood, sir. And, sir, second question is the bookkeeping.

Speaker #4: Even if, you can give me the India's impact, for, for this quarter, right? gross margin deficiency and other, in other subjects.

Speaker #3: Act, 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 #3: And finance cost 48 crores.

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

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 Mayank Maheshwari from Morgan Stanley.

Speaker #1: Please proceed with your question.

Speaker #3: 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?

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Speaker #3: 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?

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Speaker #4: 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.

Speaker #3: Repair involves bringing the bolt into the tooling. Then, the order in total is, first, the current year's commitment—they have to adjust that. Then only any offset for the past year will be taken.

[Company Representative] (Petronet LNG): If they are bringing more cargo to you, then the order first the current year's commitment, they have to exhaust that, then only.

Speaker #4: State of almost every day, there is change of statement at geopolitical level. So nobody has an answer that when the state of almost will open.

Nitin Tiwari: Okay

Nitin Tiwari: Okay.

Speaker #4: But the moment it opens, Qatar is, as you see, certain media reports even of yesterday, that Qatar is started production there, ramping up their production.

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

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

Speaker #4: Okay. Right, sir. I'm just making notes, just bringing this down further. So, sir, yeah, basically, cargoes are being brought in for touring, right?

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

Speaker #4: The heat, the, the, the measurement they are doing in terms of the heat around the plant. So that level is increasing, which means production is increasing.

Speaker #4: वही, वही cargo consider किया जाएगा for offsetting user के, right? long-term contract is not a part of that, arrangement, right? तो अगर if.

Speaker #4: So that was the Bloomberg article yesterday. So as soon as, the state of almost is open, we are hopeful that, we'll start, taking volumes on FOB basis from Qatar.

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

Speaker #3: Yes, yes, your understanding is correct. Regarding the long-term contract, as far as client service is concerned, that is a separate contract where takeover clauses are there—not on the user side.

[Company Representative] (Petronet LNG): Yes. Yes, your understanding in your end is correct. Long-term contract as well as the supply and service concern, that is separate contract where take-or-pay clauses are there, not use or pay.

Speaker #4: Okay, okay.

Nitin Tiwari: Okay.

[Company Representative] (Petronet LNG): That is it for that.

Speaker #3: It's separate contract.

Speaker #4: So directly, if obstacles of 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: So in a way, is this the correct understanding that, like, you know, if this situation continues, then this, this tolling cargo which is coming in can retire the user pay much faster than possibly which would otherwise have been possible?

Nitin Tiwari: So in a way, 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 #4: From that perspective, we have given the capacity to these capacity holders to bring more volume.

Speaker #3: Absolutely. Depending on the fact who had user pay. That's the only caveat I would add.

Speaker #3: Mm-hmm.

[Company Representative] (Petronet LNG): Absolutely. Depending on the fact you take use or pay. That's the only caveat I would add.

Speaker #4: And FM declaration from Qatar is on month-on-month basis. So basically, every month, depending on the situation, they are declaring. So right now, it's been declared for end of August.

Speaker #4: Okay, understood, sir. And, sir, my second question is on bookkeeping. If you can give me the India impact for this quarter, and discuss the gross margin deficiency and other subjects.

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

Speaker #3: 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?

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

[Company Representative] (Petronet LNG): At gross margin level, +14 crores, and Forex loss is five crores, and other expenses level, +8 crores. In depreciation, 66 crores, and finance loss 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. And depreciation 66 crores.

Speaker #3: And finance loss 48 crores.

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%.

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 with you.

Speaker #2: 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.

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.

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 #3: and the capex spent would be roughly about what percentage of this?

Speaker #2: Please proceed with your question.

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.

Mayank Maheshwari: Hi, sir. Thank you for doing the call. The first question was related to QatarEnergy 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 think about delivering some of these volumes?

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

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

Speaker #3: 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.

Speaker #3: So, as far as sourcing, I'll answer the second question. We are in constant touch 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, and they are also waiting for things to improve. The Strait of Hormuz, every day there is change of statement at the geopolitical 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 volume from FOB basis from Qatar. Mayank, your second question was why are we not sourcing from alternate sources.

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

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, a contract with Deepak Fertilizers where they wherein they were expected to bring in additional cargoes.

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, the measurement they are doing in terms of the heat around the plant.

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

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.

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

[Company Representative] (Petronet LNG): So, of course, as you have seen, if we buy and resell it, there are certain taxation implications. So directly offship or GAIL DPC 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 are giving the capacity to these capacity holders to bring more volumes. FM declaration from Qatar is on month-on-month basis. So basically every month, depending on the situation, they are declaring. So right now it has been declared for end of August.

Speaker #3: under both these contracts.

Speaker #3: So directly, if operators of Yale IIT BTCL is importing, that becomes more advantageous and more, saleable in the market. So we have to be competitive in the market.

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

Speaker #3: So on that perspective, we have given the capacity to these capacity holders to bring more volumes.

Speaker #4: How much was it?

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

Speaker #4: Okay.

Speaker #3: And SM declaration from Qatar is on month-on-month basis. So basically, every month, depending on the situation, they are declaring. So right now, it's 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?

Mayank Maheshwari: Got you. 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 that?

Speaker #4: Sure. Can I ask the second question in terms of petrochemicals? What percentage of your capex has been spent on petrochemicals till now?

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

Speaker #4: And in terms of completion, on the physical side, how much have you been able to complete there?

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

Speaker #3: No, no. We are still in talks. the 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.

Speaker #3: Okay. So, as I have told you, we are on track with our 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: So we are, on a almost on a daily basis, we are meeting with our off-takers. And, finalizing the terms and conditions.

Speaker #4: Okay. and the capex spend would be roughly about what percentage of this?

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

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?

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.

[Company Representative] (Petronet LNG): The CAPEX, there is always a difference between the CAPEX spend and the physical progress. Financial progress is not exactly it will match with the physical progress. That is 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.

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

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

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

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

Speaker #5: hi, sir.

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

Speaker #4: Very good. Perfect. Okay. Thank you.

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

Speaker #2: 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 #5: Hi, sir. thanks for taking my question. one question from my end, sir. so sir, at The Hedge, we were, we had signed a, 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 cargoes. Have those started? I think around 0.5 MTPA. 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.

Speaker #4: But the, the, the new Qatar Energy from 2028, the 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 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 #3: It's a formula driven price which includes the shipping cost. Of course, we cannot disclose the formula, but it I'm not sure what you're looking at in, in this question.

Speaker #5: So have those volumes also increased?

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

[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 #4: That's based on landed cost.

Speaker #3: under both these contracts.

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

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

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

Speaker #4: 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.

Speaker #3: yeah, it was, two cargos. The contract amount in May 2026, so until date, we have got two cargos.

[Company Representative] (Petronet LNG): Yeah. Two cargoes. The contract comes up till May 2026, so until then, we have got two cargoes.

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 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 #4: 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.

Speaker #4: how much visibility do you have of, the off-takers getting, volumes and, what is the, what is the logical, model utilization or volume that we should model for the H, till the time this crisis continues, as, as far as, cargo processing goes?

Speaker #3: No. the status quo is, there. 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 #5: Okay. But no discussion on tariff revision, but contract renewal? I mean, nothing is, nothing has happened, right?

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

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

[Company Representative] (Petronet LNG): No, no. We are still in discussion with our off-takers. 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 #4: 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 #3: So we are, on an almost daily basis, meeting with our off-takers and finalizing the terms and conditions.

Speaker #4: Thank you.

Speaker #5: 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. If you think that you are meeting regularly, can we expect the closure to happen in a quarter or two then?

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

[Company Representative] (Petronet LNG): Yes.

Speaker #5: Okay.

[Analyst] (DAM Capital): Okay.

Speaker #3: You can expect.

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

Speaker #5: That's great. That's great. Okay.

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

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

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

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

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

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

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 #2: 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 from the line of Vineet Banka from Nomura. Please proceed with your question.

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 think.

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 per the change why is this breaking?

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

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

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 a 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 prover I mean, the volume or price risk.

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

Speaker #3: Sorry, we can't 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?

Bineet 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 #4: The new Qatar Energy contract 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: 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.

Speaker #3: It's a formula-driven price. It 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'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: Is that changing, landed cost?

Vineet Banka: That change in landed cost.

Bineet Banka: That change in landed cost.

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

Speaker #2: Mr. Banka, we are not able to hear you. Can you please rejoin the queue?

Speaker #4: Okay. Sure. Thank you.

Vineet Banka: Okay, sure. Thank you.

Bineet Banka: Okay, sure. Thank you.

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 #2: 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 Vivekananda from Ambit Capital. Please proceed with your question.

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 su-supply cargoes, right?

Speaker #4: 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.

[Analyst] (Ambit Capital): 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 off-taker getting volumes, and what is the logical utilization or volume that we should model for the hedge 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 will be great. Thank you.

Speaker #4: how much visibility do you have of, the off-takers getting, volumes and, what is the, what is the logical, mod utilization or volume that we should model for The Hedge, till the time this crisis continues, as, as far as, cargo processing goes?

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.

Speaker #3: Okay.

Speaker #4: what is the next step? 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 #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.

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

Speaker #4: Thank you.

Speaker #3: So firstly, let me answer the visibility question. As you would have seen, Indian gas demand—and the 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 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 feel that if the FM continues, the replacement volume will continue to flow in at our terminal, so we don't see any issue. As we mentioned that FM fourth schedule is being declared on month-on-month basis, so I cannot say that off-takers 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 is required. On the trading side, I think, Vivek.

Speaker #4: And, 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?

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

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

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 think there is yeah, on the trading part, as we had explained before, we create, efficiencies in the system.

Speaker #3: It's, it's independent of that. If you see the, spot trading, it's only 60 videos. So for 60 videos or 10 videos of something, like that of volume, we did not have a spare capacity.

[Company Representative] (Petronet LNG): Yeah, on the trading part, as we had explained before, we create efficiencies in the system, and 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 there is the spot prices, say, for example, very high and the long-term prices are at a different level, and there is a low throughput 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 we have seen since last five or six years. This is an established business model now.

Speaker #3: 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 prover, I mean, volume or price risk.

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

Speaker #3: I hope that answers.

Speaker #3: 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 rotate the bottom line, taking the advantage of the market.

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

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.

Speaker #1: Please proceed with your question.

Speaker #4: Thanks for your question. Yes, sir. so what was the investigation revenue for the quarter? And, in term, what is how much service price was, you know, at then?

Speaker #3: This is what is the and it's 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 reclassification revenue is 1,214 crores. And the rest of our rest of the question, we could not hear.

Speaker #4: Okay. just, just a couple of follow-ups. 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 su-supply cargoes, right?

[Analyst] (Ambit Capital): Okay. Just a couple of follow-ups. When Qatar is declaring a force majeure, you said that the status is that till end of month, they will not supply cargos. Right? By when do you find out that, okay, in September you will not get any cargos from Qatar? 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 off-takers and then utilize some of the freed-up capacity because Qatar is not sending you cargos.

Speaker #3: Could you repeat that?

Speaker #4: Yeah. So, so how much till date have we spent towards the capex?

Speaker #3: Capex expenditure. If I 600, 79, are you asking about the capex?

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: Exactly. Exactly.

Speaker #3: Or, cumulative? And for which project?

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: I'm talking about back end.

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

Speaker #4: Okay. Thank you.

Speaker #3: So, firstly, we are in constant touch with the Qatar Energy team. On a regular basis, we have conversations with them. 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 #1: Thank you. The next question is from the line of Bineet Banka from Lumura. Please proceed with your question.

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

[Analyst] (Ambit Capital): Okay. It is that dynamic, is it? You get to a week before the next month.

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

[Company Representative] (Petronet LNG): Just to get

[Analyst] (Ambit Capital): starts that, okay, you have free Qatar. 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 #4: and, ju-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?

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.

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

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

Speaker #3: It's, it's independent of that. It depends on if, if you see the, spot trading, it's only fixed dividends. So for fixed dividends or 10 dividends or something, like that of volume, we may not have a spare capacity.

Speaker #3: It's, it's independent of that. It depends on if, if you see the, spot trading, it's only fixed dividends. So for fixed dividends or 10 dividends or something, like that of volume, we

[Company Representative] (Petronet LNG): It is independent of that. Because if you see the spot trading, it is only 6 TBtu. So for 6 TBtu or 10 TBtu or something like that of volume, we need not have a spare capacity. Even in the COVID, aftermath of COVID, and during the Russian-Ukrainian War 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: And, and for these projects, sir, is there any equity IRA A that you had given early? I think in 2023, the number was 30%.

Speaker #4: So have you done any recalculation based on current pricing?

Speaker #3: aftermath of COVID and during the And, Russian 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 #3: Bineet, we 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.

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, closed for to the public for the time being.

Speaker #3: I hope that answered.

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

[Analyst] (Ambit Capital): Okay. Understood. Thank you very much. Have a very good day.

Speaker #2: 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 one now. The next question is from the line of Hardik Solanki from ICICI Securities. Please proceed with your question.

Speaker #2: Please proceed with your question.

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 period of the plant?

Speaker #4: Okay. 343D, sir. so what was the investigation revenue for the quarter? And, in term, what is how much service price volume as well?

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

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

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

Speaker #3: We could only hear your first question. The recalculated revenue is ₹1,214 crore. The rest of your question, we could not hear.

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

Speaker #3: Could you repeat that?

Hardik Solanki: Yeah. How much till date have you spent towards the CAPEX?

Speaker #4: Yeah. So, how much have we spent towards the CapEx till date?

Speaker #3: CapEx is expenditure. C equal to yes. If I fix on it, 79 are you asking about the CapEx expenditure or, cumulative? I'm talking so.

[Company Representative] (Petronet LNG): CAPEX expenditure. Please continue. 5,679. Are you asking about the CAPEX?

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

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

Hardik Solanki: FICAX. FICAX

[Company Representative] (Petronet LNG): in June, or cumulative?

Hardik Solanki: I am talking about FICAX.

Speaker #4: Talking about cycle.

Speaker #3: Okay. For the quarter, the same for the quarter is ₹472 crores—around ₹470 crores.

[Company Representative] (Petronet LNG): Okay.

Hardik Solanki: For the quarter.

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

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

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

Speaker #4: Thank you.

Hardik Solanki: Okay, thank you.

Speaker #5: 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 measure continues, you have the liberty to trade gas at the spot prices.

Speaker #2: 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 #4: hi, sir. sir, for HTT plant, has there any propane contract being signed already?

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

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

Speaker #5: And if that force measure goes aside and normal business slips in, then you can again start, doing business at the contracted prices. Is my understanding correct?

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.

[Company Representative] (Petronet LNG): Propane, see, 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.

Speaker #3: And as, 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 Qatar contract.

Speaker #4: But for the sourcing, we'll basically be mostly coming from the Middle East, right? And Southeast India prices.

Vineet Banka: The sourcing will basically be mostly coming from the Middle East, right? Saudi CP point, right?

Bineet Banka: The sourcing will basically be mostly coming from the Middle East, right? Saudi CP point, right?

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

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

Speaker #5: Okay. Okay. Got it. Thank you, sir.

Speaker #4: 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?

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?

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

[Company Representative] (Petronet LNG): Vineet, as we had maintained before, we have still to do certain commercial contracts. I mean, a couple of contracts we have already done, like the 600 MTPA ethane and LNG. This one will be phenolic compounds. But then certain other commercial contracts we have to do. We have to keep these numbers, I mean, close to the public for the time being.

Speaker #3: we need to re no, see, we need to as we had maintained before, we have still to do certain commercial contracts. I mean, couple of contracts we have already done.

Speaker #5: 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.

Speaker #3: Like the 600 TTP of Ethane and Link. And, this, one with this depot phenolix. But then certain other commercial contracts we have to do.

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

Speaker #5: Kochi is 98. great, sir. And, secondly, sir, also, I wanted to understand, that the basis that we have, on time charter basis, so, I mean, are we paying that, the, the charter rates or that's also, is under the ambit of force measure and it's not paid?

Speaker #3: So we have to if, these, numbers, I mean, close for to be published for the time being.

Speaker #4: 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 its useful life for the PDF?

Vineet Banka: And sir, what will be the useful life of the plant? If I have to do the calculation for the profitability, what people presume the useful life for the previous three plants?

Bineet Banka: And sir, what will be the useful life of the plant? If I have to do the calculation for the profitability, what people presume the useful life for the previous three plants?

Speaker #5: How does that work?

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

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

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

Speaker #5: Okay. So 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 measure clause, but there are other you know, clauses in the contract.

Speaker #4: Okay. And, sir, another question on, the, the, the, the third quarter that from 42D here. So four energy if you have any coming from Qatar, then what is the use of the energy carriers?

Vineet Banka: Okay. And sir, another question on the Q3, from Q2 to DA. You have already four LNG. If you have LNG from Qatar, then what will be the use of the LNG carriers? Because I think they are there for 25 years at least.

Bineet Banka: Okay. And sir, another question on the Q3, from Q2 to DA. You have already four LNG. If you have LNG from Qatar, then what will be the use of the LNG carriers? Because I think they are there for 25 years at least.

Speaker #3: Other, in the time charter agreements. through which, we have, enabled the suspension.

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

[Company Representative] (Petronet LNG): The carriers, most of the carriers, once the SPA ends, the carrier also times have to come to end, except one.

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

[Company Representative] (Petronet LNG): The carriers, most of the carriers, once the SPA ends, the carrier also times have to come to end, except one.

Speaker #5: Got it, sir. great. Thanks. Thanks for clarification. that's also my end.

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.

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

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

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

Speaker #2: 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 PK Nigam from an individual investor. Please proceed with your question.

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

Speaker #5: 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 source major continues, you'll have the liberty to trade gas at the spot prices and if that source major goes aside and normal business keeps in, then you can again start, doing business at the contracted prices.

PK 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 kicks in, then you can again start doing business at the contracted prices. Is my understanding correct?

Speaker #6: Thanks. Thanks a lot, for this opportunity. so this is good for questions, sir. I hope I'm audible.

Speaker #3: No, your voice is not clear.

Speaker #6: Is it better, sir?

Speaker #3: Yeah. Slightly better.

Speaker #6: Okay. I can get through. so, you know, so thank you for, this opportunity, sir.

Speaker #5: Is my understanding correct?

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

Speaker #3: So sorry. Please, the contracted volume, they come in and go to our optical on back-to-back basis, the trading business is independent of that. It depends on the market opportunity, the price that which we are buying cargo that which we are able to sell.

Speaker #3: No, not.

Speaker #6: And my question is, sir, is there anything that might be normal?

Speaker #3: And what are you not audible?

Speaker #6: Not audible.

Speaker #3: And as I mentioned, out of operational efficiency, we do have some energy available, so we trade that also. So it is a mix of all, but it is nothing to do with certain contracts.

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

Speaker #6: Yeah, sure. I'll, I'll just ask him.

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

Speaker #5: Okay. Okay. Got it. Thank you, sir.

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

Speaker #2: Thank you. The next question is from the line of Nitin Tawari 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.

Speaker #5: Hello, sir. Can you put some light on how much certainty or how much, seeing certain is the sourcing of alternative cargoes till the time this middle east conflict continues?

Speaker #5: Hi there. Thanks for the opportunity again, sir. Just wanted to understand, what are our tariffs right now at Dahej 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?

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

Speaker #3: So The Hague is around ₹69, and Kochi is around ₹98.

Speaker #3: The sourcing is actually being done under the tooling contract. Service contract by our, customers. And, as per trend, whatever we are missing from the middle east, actually more than two-third is being, brought by these, customers.

Speaker #5: Kochi is 98. Great, sir. And secondly, sir, also, I wanted to understand that the basis that we have on time charter basis—so, I mean, are we paying the charter rates or is that also under the ambit of force majeure and it's not payable?

Nitin Tiwari: Kochi is $98. Great, sir. Second, sir, 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 payable? 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.

Speaker #5: How does that work?

Speaker #5: Okay, sir. That answers my question. Thank you.

Speaker #3: Yeah, understanding is correct. That's also under force majeure.

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

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 #5: Okay. So we are not paying any charter.

Nitin Tiwari: Okay, so 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 majeure clause, but there are other you know, clauses in the contract.

[Company Representative] (Petronet LNG): 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 #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.

Speaker #3: Thank you.

Speaker #3: Other, in the time charter agreements, through which we have enabled the suspension.

Speaker #6: Thank you, everyone.

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.

Speaker #5: Got it, sir. Great, sir. Thanks. Thanks for the clarification. That's all from my end.

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

Speaker #2: Thank you. Before we take the next question, a general gentle reminder for all the 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 Jay Shah, an individual investor. Please proceed with your question.

Speaker #2: The next question is from the line of Jayesha, an individual investor. Please proceed with your question.

Speaker #6: Thanks. Thanks a lot, for this opportunity. So, sir, just quick question, sir. I hope I'm audible.

Jay Shah: Thanks a lot for this opportunity. Two quick questions, sir. I hope I am audible.

Speaker #3: No, your mic is not clear.

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

Speaker #6: Is it better, sir?

Jay Shah: Is it better, sir?

Speaker #3: Yeah. Slightly better.

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

Speaker #6: Sir, I hope I can get through. so, you know, in terms of thank you for, this opportunity, sir.

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

Speaker #3: No, no.

[Company Representative] (Petronet LNG): No, you are not audible, sir.

Speaker #6: Is there anything different from normal?

Speaker #3: And not only what is not original.

Speaker #2: Mr. Jayesh, we cannot hear you.

Operator: Mr. Jayesh, we cannot hear you.

Jay Shah: Yes, sir. I'll just

Speaker #6: Yes, sir. I love you.

Speaker #2: 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 PK Nigam, an individual investor. Please proceed with your question.

Speaker #5: Hello, sir. Can you put some light on how much certainty or how much, see certain is the sourcing of alternative cargoes till the time this Middle East conflict continues?

PK 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?

[Company Representative] (Petronet LNG): The sourcing is actually being done under the tolling contract, service contract by our customer. As for trades, 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 #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 230 being, brought by these, customers.

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

Speaker #5: Okay, sir. That answers my question. Thank you, sir.

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

Jay Shah: Okay, sir. That answers my question. Thank you, sir.

Speaker #2: 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 #2: Thank you, and over to you, sir.

Speaker #5: Okay. Thank you. Thank

[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.

Speaker #3: 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.

Jay Shah: Thank you. Thank you everyone.

Speaker #2: Thank you. On behalf of Daler 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.

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Q1 2027 Petronet LNG Ltd Earnings Call

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