New Delhi: Petronet LNG, a major player in India’s liquefied natural gas (LNG) sector, posted a substantial 45.4% increase in its consolidated net profit for the quarter ending March 2025, driven by operational efficiency and improved capacity utilization.
The company reported a net profit of ₹1,067.58 crore, compared to ₹734.07 crore in the same quarter last year. This sharp rise in profit came despite a 10.28% decline in total income, which stood at ₹12,513.15 crore for the quarter, down from ₹13,946.80 crore in the previous quarter of FY24.
Cost Control and One-Time Income Support Profit
The impressive profit growth was attributed to significant reductions in operational expenses, particularly a 14.5% decrease in overall costs, which fell to ₹11,070.04 crore from ₹12,936.98 crore last year. The reduction in the ‘cost of materials consumed’ – mainly LNG procurement costs – played a pivotal role, dropping to ₹10,831.61 crore from ₹12,438.47 crore in the same quarter of the previous year.
An additional boost came from the settlement of outstanding dues worth ₹360.94 crore from gas buyers related to previous years, which contributed positively to the company’s income and profitability.
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Operational Performance
The Dahej terminal, which is one of Petronet LNG’s key facilities, processed 189 trillion British thermal units (tbtu) of LNG during the quarter, a decrease from 219 tbtu in the same period last year, but in line with the previous quarter’s volume of 213 tbtu.
Despite the decline in LNG processing volume, Petronet LNG’s performance for FY25 was strong, with a 10.11% increase in net profit to ₹3,883.92 crore compared to ₹3,527.02 crore in FY24. The company’s total LNG processing for FY25 also reached a record high, with 934 tbtu processed across all terminals, up from 919 tbtu in the previous year.
Dividend and Market Response
In recognition of its robust financial performance, the company’s Board of Directors has recommended a final dividend of ₹3 per share.
Petronet LNG’s shares closed slightly higher at ₹320.75 on the Bombay Stock Exchange (BSE), reflecting investor confidence in the company’s growth outlook.
About Petronet LNG
Petronet LNG Limited is an Indian oil and gas company formed by the Government of India to import liquefied natural gas (LNG) and set up LNG terminals in the country. It is a joint venture company promoted by the Gas Authority of India Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOC) and Bharat Petroleum Corporation Limited (BPCL).
Petronet LNG Limited, one of the companies in the Indian energy sector, has set up the country’s first LNG receiving and regasification terminal in Dahej, Gujarat, and another terminal in Kochi, Kerala. While the Dahej terminal has a nominal capacity of 17.5 million tonnes per year (equivalent to 70 million cubic metre per day of natural gas at standard conditions), the Kochi terminal has a capacity of 5 million tonnes per year (equivalent to 20 million cubic metre per day of natural gas).