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Petronet LNG Ltd
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Ladies and gentlemen, good day, and welcome to the Q1 FY '24 Results Conference Call of Petronet LNG Limited hosted by Emkay Global Financial Services. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sabri Hazarika from Emkay Global Financial Services. Thank you, and over to you, sir.
Yes. Thank you. Good evening, ladies and gentlemen. On behalf of Emkay Global, I'm pleased to welcome you to the Q1 FY '24 post earnings conference call of Petronet LNG Limited. The company will be represented by the senior management led by Mr. Vinod Kumar Mishra, Director Finance; Mr. Rakesh Chawla, GGM and President, Finance and Accounts; Mr. Gyanendra Kumar Sharma, CGM and VP Marketing; Mr. Vivek Mittal, CGM and VP Marketing; and Mr. Debabrata Satpathy, General Manager, Finance and Accounts.
So today's session would be a brief on the results and the performance of the company, followed by the question and answer round. So without any further delay in our request, Mr. Vinod Mishra for the opening remarks. Over to you, sir.
Thank you, Sabri. Thank you very much. I welcome all of you. A very good evening to all of you. So if you look at the financial results of Q1 2024. It's during this quarter ended on the 30th June 2023.
The Dahej Terminal has processed 217 TBTU as compared to 172 TBTU in the previous quarter and 196 TBTU in the corresponding quarter. There is a growth of around 26% as compared to previous quarter and 11% as compared to corresponding quarter. If you look at the overall utilization of Dahej Terminal, it is at the level of 96% as compared to 76% in the previous quarter and 87% in the corresponding quarter. Overall throughput in both the terminals, Dahej and Kochi is to the extent of 230 TBTU as compared to 185 TBTU in the previous quarter and 280 TBTU in the corresponding quarter. So this is the total utilization level. And overall utilization has increased by 24% and 11% as compared to previous quarter and corresponding quarter.
And if you go to the financial results, the PBT has been INR 1,062 crores as compared to INR 880 crores -- INR 818 crore in the previous quarter, and INR 937 crores in the corresponding quarter, with a growth of around 13%, respectively, as compared to previous quarter and corresponding quarter. And PAT has been to the extent of INR 790 crores as compared to INR 614 crores in the previous quarter and total INR 701 crores in the first earning quarter. Here also growth is around 29% and 13% as compared to previous quarter and corresponding quarter. And if you look at the PAT and PBT, this is the highest ever PAT and PBT in the first quarter of any previous financial year as compared to those quarters.
So this is how the company has fared and now, if you look at the total throughput, which has -- we have been able to achieve is due to better capacity utilization and efficiency in operations. Thank you.
[Operator Instructions] The first question is from the line of Probal Sen from ICICI Securities.
Two questions from my side. One was that GAIL in its own analyst meeting a couple of hours ago that mentioned that the [indiscernible] reporter facility is making progress. Once it is actually completed in the next financial year, they would look to probably divert about 12 to 14 cargoes that they now reached to the Dahej Terminal. So -- which translates to somewhere around 1 million tonnes or so. Do you realistically see this as a threat to our utilization in FY '25, if GAIL actually manages to follow through on this guidance. That was my first question.
You are referring to this press conference or whatever investor meet you must have had with GAIL. Actually, this I cannot comment if they have something in their mind, and they have stated to you. But the only thing I can say that whatever capacity is booked to the extent 0.5 MMTPA. And to the extent of long-term contract they have with us to the extent of the share of around 4,500 TPA out of 7.5 MMTPA is our guess. So that will continue. So I think there should not be too much of impact because GAIL is already having more cargoes in their hand, they can bring more cargoes to India. So as far as our commitment is concerned, it will remain so and perhaps -- maybe that they are taking right now some cargoes to Hazira. So they may switch over to Dabhol because here, the commitment is firm. We cannot say that we will take cargo from here to Dabhol because they have already committed to the extent of 2.5 MMTPA. So that will continue. So we don't foresee any threat to us. Maybe whatever cargoes, they are taking to Hazira or any other channel, they may divert them to Dabhol.
Sir, just to be clear, this 2.5 MMTPA you are mentioning is the long-term cargo schedule lines on back to back with you, correct?
Yes, Yes.
And what about the regas contracts, sir, how much do they have tied up in the regas...
I'm telling you about this long-term contract is 4.5 MMTPA out of [ 7.5 ] year last year. and 2.5 MMTPA, regas contracts with us. So almost, you can say that 24 cargoes -- 30 cargoes, they have to bring to our terminal in arrear.
30 cargoes in total, long-term ones.
Equivalent to 2.5 MMTPA.
The second question, if I may, was with respect to the petrochemical expansion that we have. Any further updates you can share in terms of where the project is right now, whether we have moved in terms of any milestones finalizing any license and things like that. Can you share any updates on that project?
Right now, it has not gone to the Board for approval. So now the consultant is already preparing DFR and other things. So as and when it will come to the Board, then only will initiate the proceeding. But right now, you are right that we are doing some pre-project activities. So that is there. And as and when this license election is finalized, we'll put up to the Board along with DFR. So that part is may be completed in the next 4, 5 months, 6 months maximum.
So realistically speaking, sir, we can think about going to the board sometime by the end of this financial year or maybe in the fourth quarter? Is that a fair way to look at it?.
I cannot predict it. It will be too early to say anything, but maybe in 3 months also it may happen 2, 3 months or maybe 4 months. I'm not sure about it, but it will go definitely because AL is finalizing the licensor selection and if they give the recommendation, then we will start the process for recommendation to the Board through our PAC Committee. So that is there. But exact time line, I cannot take right now, but I've told you the maximum time limit is 4 to 6 months, 5 to 6 months.
The next question is from the line of Kirtan Mehta from BOB Capital Markets.
Thank you for this opportunity, I wanted to...
Sir, sorry to interrupt, but you are not audible, sir. The volume is very low. If you could please speak closer to the mic.
Is this better?
It's a little better, sir, please go ahead.
I wanted to understand the progress on the take-or-pay revenue that we charge to the customer. I believe we were pursuing the FY '22 take-or-pay revenues for this realization. So is there any progress where the clients have recognized and made any payment or commitments?
See, we are trying our level best. We are still making efforts to realize the payments. And we are following up with them and some of the customers have even directed and provided [indiscernible] on that. So we are hopeful that as per contract, it is stable. So we are pursuing it. As such, there is no other proposal in hand. So as per contract, we are following it up and rigorously pursuing it, so that we can get the realization of entire user pay charges.
So in terms of the revenue, you mentioned that some of the customers have deducted TDS, would you be able to give a proportion on which the TDS has been deducted?
I cannot give the names here right now, but...
Is it in only the proportion or is it a percentage of the total that we have charged without civilian payments?
Percentage-wise, I cannot discuss. But I'm telling you that this is a good sign that somebody has recognized that there is a liability in their books. So it's a good thing for us that they are in process of recognizing the liability and that's why they have deducted the TDS.
The second question, I just wanted to clarify my understanding of your previous answer to Probal. So what we are saying is that the GAIL has a 2.5 million tonne contract with us which includes both service as well as the long-term value and this translates to around 40 cargoes that GAIL is coming.
Just interrupting you, there are two contracts. One is long-term contract against the large gas volumes, which is to the extent of 60% of 7.5 MMTPA that works out to 4.5 MMTPA. So that is a part which we sale of our LNG, we are doing back-to-back to extend at 4.5 MMTPA, which translates equivalent to almost 72 cargoes. So that is apart from this 2.5 MMTPA, which is equivalent to 40 cargoes, total 112 cargoes, if you look at from these 2 contracts. And this does not include this ExxonMobil volume, which is also to the extent of 30% of 1.4 to 5 MMTPA. So I'm just telling you total totality, how much is the commitment of GAIL. So these are all firm commitments.
The next question is from the line of Maulik Patel from Equirus Securities.
So a couple of questions. First is that on this project expansion on the -- can you just give the updates the status of gratuities to the banks right now. And there has been some talks in the market that you are not getting the support from the government of Gujarat to -- particularly from the Gujarat Maritime Board in your proposed expansion because you require to get that approval. And according to Gujarat it's not giving because there has been a due from GSPC against this takeaway contract. Can you just please -- any update on the same?
All these things, you are just mentioning. I'm not aware of those. But what I can say is that progress is well. As far as our CapEx is concerned, we are going ahead well. And this tank's construction is almost more than 50% complete, maybe by end of this '24, we shall be completing for the tank. So I think that's not an issue, CapEx wise. And the second part is Dahej expansion part. For that also, we are just going to award the contract so that we can just finalize all the sales, and it is going on.
In fact, some work we have already started. And of course, these will be awarded, more packages will be awarded. In fact, [indiscernible] is there, who is an EPCM contractor. So he's doing all the roll. So I think there is no hurdle in that and it will come in time. That part is also to be completed by March 2025 almost. So it is all valid time. All these stories are coming up that this is happening, that is happening. It's all not correct. And in fact, whatever is happening is correct and that we are following up and maybe some delay might be there on one part or another, but it's not because of any other reason.
Sir, another thing is that particularly the various CapEx which you are lined up for the H2, this -- the rate expansion, which you mentioned is about the jetty, right? and the regas facilities which you need to set up.
Yes. In fact, this is the debottlenecking of Dahej plant to the extent of capacity expansion of 5 MMTPA from 17.5% to 22.5%, one part. Jetty is another part, which is going on separately. With that CapEx, also we are doing -- it's in the tendering process. We have yet to award that contract. So that is going on. So these are 2 different contracts, expansion and this third jetty construction.
Sir, just one more question. On the outlook side, if you look at the domestic gas production has increased in the last couple of months because of the Reliance started producing the gas from the MJ field. And the price of the international spot LNG is also lower, there has been an incremental demand. Where do you see the demand for the country? And definitely, the goal in today's call was very optimistic that they may finish the year within a 123 MMSCMD volume compared to the 115 MMSCMD and 116 MMSCMD they have done it for this quarter. So what is your outlook on the gas consumption and particularly for your volume? .
Gas, I will request some marketing team to stay in it.
Gas consumption level is now slowly increasing in the country. And you would see from our revenue itself, the export market has become quite affordable and comparable to the long-term contracts. And that is what India has started setting up. And the trends are expected to be in the similar line, and this year, we expect the volume to grow up. Okay. Have I answered your question?
Partly, sir, in terms of -- just want to see another way. Let's say, there have been some [indiscernible] demands which you've asked for your offtakers, right, GSPC or EPCM and others. Our employers demand in the sector over [indiscernible] this quarter comes down. Do we note the provision the we buy additional cargoes and that will be offset against the previous year's demand?
There is no provision in the call there. So as of now, there is nothing of that on more of this and supplementing what Mr. Sharma has just explained, the volume, if you look at last year, you are seeing 120 MMSCMD, it is not correct. In fact, you see the last year actual rate consumption, it's 160 MMSCMD. And this month itself, June end, it was 179 MMSCMD. The gas consumption is increasing, not decreasing. April, it has been 167 MMSCMD.
The number which is focus was only for the deal, the goal transmission volume, which was 116 MMSCMD for this quarter of Q1. And it was 180 MMSCMD for the previous quarter of Q4 FY '23. So it was only for the date and not overall India consumption.
Okay. Okay. Fine. Then it's fine.
The next question is from the line of Varatharajan Sivasankaran from Antique Limited.
You're referring to the contract, so if you can complete the loop by giving us what are the other contracts and the remaining tenure of some of the products, because the long-term contract we are [indiscernible], but we like foreign and you set for that matter, what is the remaining term of that contract and the content?
See, if you are talking about regasification contracts with the customers. So if you look at the contracts up to 2035, or '36 rather. So if you look at the regas contracts we have, it is total 8.25 MMTPA. If you look at the division, it's a -- different companies are there, mainly by GAIL, IOCL, BPCL, GSPC, Torrent and Adani for 1 year or 2 years maximum, at any part. But other contracts are for 2000 up to 2036. So that means it's a long-term contract for regasification and that is going, it will continue. It has been a difficult time. If we see the last year, whatever prices have gone to that extent, [indiscernible] level. This is because of various unprecedented market weakened situations where Russia, Ukraine war has happened. And then before that, there was some crisis also COVID and other things has affected all these things.
So I think it will not continue forever. So certainly, the situation has started improving. If you see the LNG prices in the market, they have come down to almost $10 to $11. So this is showing that prices have softened and perhaps this is the reason that our throughput has increased in this quarter. You see the growth is around 36% as compared to previous quarters. So this is only because more cargoes have come, because prices have declined. And because of that, the cargoes are coming to India. So this is thing -- this is something which we hope will continue and maybe prices will further come down. So more cargoes will come.
Sure. Similarly Torrent and Adani. So we were under the impression regarding some of like -- is that correct or do...
Sir, sorry to interrupt, but the line for you is not very clear. You sound very muffled. I request you to please repeat the question. And you use the handset while you're speaking, sir?
Yes, is this better? .
This is much better. Sir, please go ahead.
Yes. Sorry about that. .
So specific to Torrent and Adani, we were under the impression, the remaining term is like more like 1 or 2 years. So is that correct? Or is it also long term?
Ladies and gentlemen, the line for the management seems to have disconnected. Please stay with us while we reconnect with the management. Ladies and gentlemen, we thank you for your patience. Vivekanand, we request you to please repeat your question for the management. We have connected with the management.
Yes.
Sorry about that. Sir, just wanted to say specific to Torrent and Adani. We were in impression, this is more like relatively short-term contracts with remaining terms of around 1 or 2 years. So is that correct? Or are they also long-term contract?
No. I'm telling you, you are partially correct. Adani contract is for maximum 1 or 2 years, you are right. But Torrent is up to 2036 for 1 MMTPA. Adani is 0.75 MMTPA.
Sure. And my second question was about this East Coast terminal. The [indiscernible] market seems to be extremely tight at this point in time. Are you still going ahead with the FSRU proposal? Or do you feel like there is a reason to change that view on that?
We have lost the line with the management. Ladies and gentlemen, we thank you for your patience. We have reconnected with the management. You may go ahead, sir.
Yes, just repeating for questions, sir. East Coast terminal. The FSRU market seems to be extremely tight. So are you having a rethink on the proposal? Or would you like to see go ahead with the FSRU based partner in the East Coast?.
Yes, East Coast terminal will continue. We are firm on that. And right now, we are proposing only for FSRU's base terminal. So it will continue, but demand will continue. You see India is a country where demand potential is very high. You can not say the demand is not there.
Fair enough, sir. Yes, I was just wondering because FSRU market is so tight.
Are you really in a position to convert it into [indiscernible]...
Right absolutely, we are trying to explore it. If we are able to do it from FSRu based terminal, then it's fine. Otherwise, we'll go for land based terminal. So both options are open there.
Would there be a big difference in the CapEx costs in terms of their estimate?
CapEx cost is different, no doubt. It's hardly INR 2,300 crores for FSRU and that is almost INR 5,000 crores. So there's CapEx difference, but then OpEx will be less in FSRU. So in a period of 5, 6 years, it will be almost same both FSRU as well as land based. So that's not an issue, but we have to see the feasibility because you are right, if market for FSRU is very tight because of European shifting to LNG, and they have taken many FSRUs. So maybe that we may not get a reasonably priced FSRU. Then we will certainly have a backup plan for a land-based terminal.
The next question is from the line of S Ramesh from Nirmal Bang Equities.
Thank you, and good evening. Your other expenses has almost doubled from the first quarter last year. So can you explain why that has happened? And second, if you can give us the regas margins and the trading and inventory led adjustments?
Yes, Mr. Ramesh, other expenses, this time is in line with the last quarter. What are the numbers you are referring to?
Well, if you look at first quarter of last year, it is INR 253 crores and this year it's INR 123 crores. So there's a sharp difference, down more than INR 100 crores.
Yes, the corresponding quarter, there was a ForEx loss of INR 124 crores. So if you take that out, then the other expenses are in line. And this quarter, there is a ForEx gain of about INR 4 crores. So that is not coming here.
Okay. So this quarter, and what about the regas and inventory and trading-related adjustments?
See, since we had told you in the past that once the prices stabilize and the throughputs start increasing, the trading will definitely be also stopped at certain level. So this time around, the trading gains are about INR 13 crores, and the inventory gains are about INR 15 crores.
And what about regas margin?
The regas margins are the same. I mean the throughput, if you see, it is 230 TBTUs. And the Dahej Terminal has bounced back again at 96% utilization. So that's what we had told that once the prices stabilize in any case, the throughput will come in. We don't -- we would -- we might not need the trading margins and the inventory valuation gains. That was there during the times of distress, when the throughput was lower and the price was volatile. .
Understand. You usually give us a regas gross margin out of the gross contribution, give us that figure for the regas gross contribution.
So the regas contribution this time is INR 717 crores.
INR 717 crores.
Yes, this rolling contribution.
Okay. So if you were to look at the full year, like last year, you had some adjustments on the takeover pay. So this year, if you look at the next 4 quarters, the overall gross contribution, are we expecting normalized tariff receipts, and we don't expect any reserve pay tariffs are already at normal volumes?
Yes. As of now, it looks like that.
The next question is from the line of Sanath Kumar from Value Research.
Can you hear me clearly?
Sir, the volume is very low for you, sir.
Can you hear me clearly now?
Yes.
I have two small questions. One is related to the fact that what percentage of price -- LNG price increase, basically, it can pass through to the customers. And the second question is related to the regasification tariff. So ballpark figure -- average figure for the gasification tariffs?
You are talking about long-term contract, then the prices, whatever we get from suppliers that is the entire cost is passed through, including exchange rate variation, everything.
So everything is passed through.
There is nothing which -- no risk at all, which we are undertaking. So that one part is there. And your next question is the regasification tariff.
Yes, yes, average regasification tariff.
Ladies and gentlemen, the lines of the management teams have disconnected. Please stay with us while we reconnect with the management. Ladies and gentlemen, we thank you for your patience. We have reconnected with the management. You may proceed, sir. questions. One moment, I'm sorry, but the line has disconnected again. Please stay on the line. Ladies and gentlemen, we thank you for your patience. We have reconnected with the management. Sanath, you may proceed with your question, sir.
Okay. So the question is related to the regasification tariff, the regas tariff, that average regas tariff that you charge?
So as regas tariff is there -- where you wanted to know the rate or entire amount?
Not the amount. USD per MMBTU average regas tariff.
In terms of rupees.So we are charging 59 [indiscernible] and The Kochi is INR 85.
So Kochi is INR 85 and the range is...
And the range is around INR 59.
Rupees per MMBTU?
Rupees.
Okay. And another question, which is related to LNG prices. So given the additional capacities that are coming up internationally on the production side, the LNG production side, do you see LNG prices [indiscernible] by the end of this year, will further go down by 50% or on an average? So I'm not talking -- looking at an exact number, but just a ballpark figure as to how much do you think they may go down?
We cannot predict the LNG market, it's a very difficult thing. So many people predicted last year also, but all predictions have gone wrong. But as of now, it doesn't look as if prices will increase, but they are likely to remain stable at this $10 to $12. So I cannot predict it will down 50% again. So this -- I don't have any data, but one thing I can assure you that maybe after 2026, '27, then more LNG liquefaction capacities are coming maybe to the extent of 150 MMTPA and even more. So there is likelihood that this energy prices will decline after that. But in this market, when the demand supply dynamics are changing day-to-day, I don't know what will happen. But as of now, in the near term, in 2, 3 months, 4 months looks like it will be in the range of $10 to $12.
Okay. So that's what I'm looking at. So I'm not looking at a great number obviously, nobody can predict that it will roughly remain stable or may go down by some numbers.
Likely to be stable. Yes.
The next question is from the line of Niharika from Equitas Investment.
Can you just brief me on the Dabhol volumes which we have booked this quarter?
Dabhol, we don't deal, you ask this question from GAIL, we are in Dahej.
No. So because they stopped it and kind of fee book for the monsoons, right, we get their volumes?
We know, [indiscernible] it like that. There is the only thing that in this monsoon season, they divert the cargoes from Dabhol to Dahej or any other place. So that is happening, but we don't have any data that how much it was diverted. But definitely, they have done because their terminal is closed for the next 6 months almost until September month.
September yes. And my other question would be government is very aggressive for this connection of Northeast grid to gas grid. So do we have any workout data that what kind of potential volume can come from Northeastern part because they are very gung ho on it and the work is going very fast to connect the whole Northeast.
The Northeastern pipeline connectivity is yet to take place. This is in [indiscernible] sight. But trade is not in or is not possible. Definitely, if the new demand comes in, of course, is good from a terminal operator perspective at Dahej.
Right. I was asking for like overall demand should go up because of the connectivity?
It should go up. Of course, it will.
Okay. We do not have any potential worked out basically to the kind of volumes which might come?
As of now, we don't we do have data on that because there is a different type of a domestic gas, LNG. So all those things are to be seen. And if you see for the domestic gas, you say most of the allocation are from this domestic gas, which is at a level at prepaid. So it's not a right question to a person like us because we are in LNG regasification terminals so not much of gas is used in domestic segment as far as LNG is concerned. Most of the gas is used in domestic in that segment. So in the Dahej gas grid is definitely a different venture. And then we don't have any idea of that.
Okay. And your outlook on the Europe scenario, what are the reserves there? And because last year, it created a lot of volatility. So do you have any -- because you would like -- if you can share something on it.
Volatility cannot be ruled out at any moment of time, but one thing I can say is that looking at the international situation, even Russia, Ukraine war has become almost an accepted thing across the globe and people have taken it as usual. After discounting that also, prices are stable. And because European countries have enough inventory. So they are also not doing any panic buying. And as that is solace to us also that they are not doing it because they have a storage of almost 84% of inventory. So that is good enough to cater to the winter season, which will be there in the month of October, December and January, February. So that way, it looks like that prices are likely to remain stable at $10 to $12, which is going right now. So this is a good thing for us, because we have seen that our terminal has also got further volumes because of this stable prices of $10 to $12. So we hope that it is continuing.
We have the next question from the line of Yogesh Patil from Dolat Capital.
I have 2 questions. If possible, can you provide a volume breakup at the Dahej terminal in terms of a long-term, spot and tooling.
[indiscernible] at Dahej Terminal long term is 90 TBTU, spot short term is 4 TBTU and tooling is 123 TBTU.
Second question, as you indicated in earlier calls about the timeline of extension of QatarEnergy contract beyond 2028. You indicated you will finalize the decision before the end of 2023. What is the update on that side, sir?
Yes, yes. This is very much on time, and we are already engaged with the QatarEnergy for the discussion on this subject. And that is before December '23, we should finalize it.
So are you here to extend this contract finalization stage is getting near. Can we expect this type of thing?
Cannot be very near or how far it is, that is going on. And target is very clear before December 2023, we will finalized and sign this contract.
Okay. Okay. So next one, considering the upcoming huge LNG export capacity at Dahej plant in the next 3 to 4 years? Are you planning to [indiscernible] LNG purchase contract with the global measures?
We are definitely exploring all the possibilities to have some volume -- for some volume from international market. But at the same time, we are cautious because if you see the market, it has been tight. And in such tight market, you will not get the right price. So this is one of the deterent which is there, and that's why we are very cautious, because nowadays, if you see the contract, we are at a very high flow in the international market. So because the availabilities demand supplies back to net. And that's why the suppliers are now looking forward to have some higher [indiscernible] for the LNG pricing. So that way, we are very cautious. So we will definitely look for it, but at the right price, so that is always going on.
And our current concern is only with the extension of our gas contracts, which we hope will be done by the [indiscernible].
Okay. And last one from my side, sir. In the next 2 to 3 years, our regas capacity will touch 22.5 MMBTU. Any update on new capacity tie-up with the offtakers for the long term?
Expansion, we are looking forward. We are open and we are in talks with the off-takers, they should book some more capacity in our terminal because we are putting up this terminal.
So are you in discussions with any off-takers?
We are discussing, but we cannot discuss all those things, which we are not finalized, we are in discussion. And certainly, this is open to others also who want to book the capital in terminal. Certainly, this will happen. But this is going on and it's a process. Maybe we will find customers very soon.
Okay. And lastly, sir, if possible, can you share what is the June -- sorry, July '23 utilization rates for Dahej, if possible?
Right. So we cannot discuss all those things. Next quarter, we will discuss July, August, September, all 3 months. Right now, we cannot discuss. It's all taken together, we take it.
So is it higher than 96% what it reported in the quarter 1 FY '24? Or is it lower? Can you indicate something?
Yogesh, actually we will not be able to discuss it, you might take the PPAC data and look at it.
[Operator Instructions] The next question is from the line of Darshan Gandhi, an individual investor.
Just wanted to ask the management with respect to the dividend policy because the last 2 years, I have been observing the total dividend outflow was INR 11.5 per share. But this year, the cumulative outflow is INR 10. So is there any change in the dividend policy? Or is the management looking for some other growth opportunities on account of which the dividend is being reduced?
So this is not the case. 100%, 115% is fine because it's a good dividend if you are giving 100% to the [indiscernible]. So it should not be conceived that this year should not be seen as if we are trying to reduce the dividend to the shareholder. There is no change in the policy, which is very much there. And we'll try to continue to pay at least 100% dividend on the paid-up sector, in future as well. This is our endeavor, and there is no change in the policy.
The next question is from the line of [ Meg ] Shah from Prospero Tree.
Yes, sir. Am I audible?
Yes, you are audible. Please go ahead. .
Yes. Can you give us the breakup of the trade receivables, like the pending user pay charges like which party is pending like what amount? .
You are asking about the user right?
Yes. Yes, user pay charges.
Yes, for contracted 2022, GHQC INR 285 crores. Okay. The total at INR 843 crores that are outstanding. Do you need to pick up, right? [indiscernible].
No, no, for the calendar year '22, each party breakup.
Yes, GHQC INR 285 crores, HPCL INR 25 crores. Torrent Power Limited INR 179 crores. IOCL INR 227 crores and APTL INR 125 crores.
Okay. So basically, the promoters are supposed to pay to the company itself, right? Like most of the user base changes, like IOCL are all promoters as well and they are the clients as well, customers as well. So why are the promotors not paying to the company itself, like if we see the fund driver pending from calendar year '20, '21, '22, so 3 years, and we are in calendar year 2023. So 3 -- from 3 years, the funds are spending. So it's very like -- it gives a very negative signal to other customers and to the market generally...
It's not like this. You are wrongly saying that it is pending for the 3 years. If you look at the user paying charges for calendar year 2021. It is charged only in the month of January 2022, means for the entire calendar year of first time we charge it in '22. If you see it is on 1.5 years. And if you look at the 2022 calendar year, they have been booked in January 2023. So like that, it is going on. It's hardly 4, 5 months, 6 months delay is there, but we are definitely on discussion with them. And this is going on. It's a process that we will try to recover as early as possible. But only thing that there has been some difficult situations in the past, which nobody is a rule out. But still, we are hopeful because as per contract, these are payable, so it should be paid by them. So it is only 1.5 years since first time they have booked the user pay charges.
Okay. Got it. Any expected time line until when the funds will be received?
We expect it as early as possible within this financial year, at least we expect it.
In this financial year, so what are the chances that they will be received in this financial year itself?
Chances, nobody can predict. All I see, I cannot predict it when I will get it because it is the discussion, it is a mutual discussion going on. So once this settled, it will be known to you, there is no time line as such to that when will it be seen.
The next question is from the line of S Ramesh from Nirmal Bang Equities.
So in Kochi, last year, the high gas prices was reducing the uptake from your end customers now with the prices coming down, do you see any increase in the consumption in the LNG from the Kochi terminal? And what is restricting the increase in the utilization rate because the volume is flat. So if you can give us some sense in terms of what is the kind of demand you are seeing for gas for Kochi terminal. How do you see it increasing once the Kochi-Bangalore pipeline is ready?
Yes. One -- first question is regarding the utilization of your Kochi terminal, because last year, as you very well know that some customers not taking gas because it is very costly. But now they are returning to utilization of gas. And perhaps we hope in next 5, 6 months, they will start taking in full volume. And another part you have asked is regarding connectivity from Kochi to Bangalore. So that is going on. And we have been given assurance by CMB GAIL that it would be completed by November 2024. So then there will be utilization of term loan because many industrial markets will be there between Kochi, Bangalore, like [indiscernible] they will be having some demand. And apart from that, more CBG business pipelines are being made as CBG entities are coming up in that area. So perhaps that will further enhance the consumption level of Kochi Terminal. So this is how it is taking shape, and we hope that further talking of prices of natural gas to further promote the use of our Kochi Terminal.
Squeezing in one more thought. What is the latter thinking on biogas and LNG in heavy truck segment, any progress on that? .
So that part, I think we are already constructing 4 terminal LNG dispensing stations, and that are ready. And I hope that very shortly, there will be starting, but only thing is that because of high LNG prices in the recent past, this progress was a little bit delayed, but now prices are coming down. So we hope that this segment can further take place. And perhaps more and more people will come in this segment, more conversion will happen, because we have started prospecting 4 LNG dispensing stations in Southern India. And they are almost completed.
The only thing we need is now back for approvals and other formalities are to be completed. And with one of the [indiscernible] we have installed these 4 locations. So let us see how people take it, because we have to experiment it up there, and if it is found useful then perhaps it will be replicated at other places also, and we will install more LNG stations. And further oil marketing companies are also doing same thing. They are also installing some stations. So I think this is how it is going ahead. But of course, because of LNG prices in the past 1 year, this segment was not going as fast as it should have gone.
Okay. Operator, can we close the call?
Yes, we can go ahead. We have one last question in queue. Sir, would you like to take that?
Yes. please.
The next question is from the line of Sabri Hazarika from Emkay Global Financial Services.
Yes, sir, we're just ending that call only. So I think thank you so much of this for the call and the insights on the results. And congratulations on a good set of numbers for the quarter. Sir, I just have this bookkeeping question regarding, I think, the [ INDAS ] numbers and also the Gorgon [indiscernible] bridge. So can you please give me that and then we'll end it here.
Yes. So Sabri, the Gorgon volumes rate is 4.5 TBTUs.
4.5, right? Okay. Yes. And what would be the [ INDAS ] numbers for the quarter in terms of gross?
INR 159 crores positive at gross margin level. Then ForEx gain of INR 4 crores. And INR 8 crores positive at other expenses level.
Okay, and the precision, interest?
The precision is INR 93 crores and interest INR 71 crore.
Sabri, without your question, this conference was not complete. Rightly asked the question, now it is complete.
I think there were better questions asked before. Any closing comments?
Yes, the closing comment is that what we are doing now, we're seeing that we have done well this quarter. And we hope that this second quarter will also be very good because as you know that whatever we are doing, we are doing our best to enhance the utilization level of our [indiscernible] but it is further supported by the declining LNG prices. So we hope that if these prices will continue, we certainly will again raise the level in second quarter and will show good results in the second quarter also. So this is how quarter-on-quarter, we are taking up this business. We don't predict for the entire year. We see first quarter and with the second quarter like that, we are doing all the efforts how to enhance the profitability. So yourself and shareholders can trust in us, that is very primary, and we make all efforts to increase the profitability of the company as far as possible. That's all from my side.
Thank you. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us. You may now disconnect your lines.