Petronet LNG Q2 net profit increased by 9%, to invest Rs 20,685 cr in petchem plant

The largest liquefied natural gas importer in India, Petronet LNG Ltd., announced a 9% increase in consolidated net profit for the September quarter on the back of higher margins. In July through September, it reported a consolidated net profit of Rs 855.74 crore, or Rs 5.70 per share, as opposed to Rs 785.73 crore, or Rs 5.24 per share, earned during the same period last year, as per a company's stock exchange filing. Reduced petrol prices caused a 21.6% decline in revenue to Rs 12,532.57 crore. In the current fiscal year's second quarter, the margin increased to 9.7%.

Petronet, its board of directors has approved a Rs 20,685 crore investment to establish a petrochemical factory in Gujarat's Dahej. The petrochemical plant, which will be built next to the company's largest LNG import terminal in India, will have a 500,000 tonne annual poly-propylene plant and a 750,000 tonne annual propane dehydrogenation plant (PDH). “The project would bring revenue generation from the sale of poly-propylene, propylene, propane, hydrogen and ethane”, it said.

Petronet plans to develop 25 hectares of green belt area in the region. “Besides significantly improving the top line and the bottom line of the company, the project aims to enhance the self-efficiency of the country in the field of petrochemicals”, it added.

The board of directors also approved the binding term sheet to be executed with Deepak Phenolics Limited (DPL) for the 15-year offtake of 11,000 tonnes of hydrogen and 250,000 tonnes of propylene from the Petronet Petrochemical Project at Dahej.