Petronet LNG Ltd
NSE:PETRONET
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
195.3
381.2
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Petronet LNG Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Q3 FY '23 Earnings Conference Call of Petronet LNG Limited hosted by ICICI Securities. [Operator Instructions] I now hand the conference over to Mr. Probal Sen from ICICI Securities. Thank you, and over to you, sir.
Thank you so much. Good evening, everyone. Thank you for making the time to attend this post Q3 results con call of Petronet LNG Limited. We have the top management of Petronet LNG with us, including Mr. Vinod Kumar Mishra, Director Finance; Mr. Rakesh Chawla, GGM and President, F&A; Mr. G.K. Sharma, CGM and VP, Marketing; Mr. Vivek Mittal, CGM and VP, Marketing; Mr. Debabrata Satpathy, General Manager, F&A; and Mr. Ashwani Agarwal, Manager, F&A.
I will now hand over to the management to give a briefing on the results. And after that, we'll have a Q&A on the same. Sir, over to you.
Thank you. Thank you, Probal. A very good evening to all of you. And I'll start with the highlights of our results. So first is that highest ever turnover PBT and PAT of INR 46,025 crores, INR 3,517 crores and INR 2,626 crores, respectively, in the current 9 months, as compared to the corresponding 9 months of the previous year.
And the highest ever PBT and PAT of INR 1,586 crores and INR 1,181 crores, respectively, in the current Q3 for financial year 2022, '23. And the growth in PBT and PAT has been to the extent of 60% and 59% as compared to the profit -- PBT and PAT of the previous quarter. So this is the highlight.
Now I'll begin with the throughput in our plan. So basically, Dahej has processed in this quarter, 154 TBTU as against 182 TBTU in the previous quarter and 196 TBTU in the corresponding quarters. As far as Kochi is concerned, it has processed 13 TBTU in the current quarter, 10 TBTU in the previous quarter and 12 TBTU in the corresponding quarter. So this is the throughput in the plant.
And if you look at the 9-month period, during which how much the TBTU has been processed. So during this current 9 months, Dahej terminal has processed 532 TBTU as against 615 TBTU corresponding 9 months of the previous year.
And the overall throughput of both the terminals for the 9 months has been 567 TBTU in the current 9 months as against 657 TBTU in the corresponding period of the previous year. And if you look at the profitability, I've just mentioned, the PBT has been INR 1,586 crores as against PBT of INR 994 crores in the previous quarter and INR 1,533 crores during the corresponding quarter.
And PAT has been INR [ 1,181 ] crores in the current quarter as against INR 744 crore in the previous quarter and INR 1,144 crores in the current quarter. So this is the PBT and PAT result. Apart from that, as I mentioned, the company has reported highest ever turnover of INR 46,025 crores in the current 9 months as against INR 32,008 crores in the corresponding period of the previous year. So there is a growth of around 44%. But this is largely due to the price which has been higher in this period as compared to the corresponding period.
And if you look at PAT and PBT of this particular period of 9 months, PBT has been INR 3,517 crores, as against PBT of INR 3,489 crores in the corresponding period of the previous year. PAT has been INR 2,626 crores, as against a PAT of INR 2,602 crores in the corresponding period of the previous year.
So if you look at -- this is the result and if you see, there has been [indiscernible] there to the extent of INR 60 crores due to foreign exchange volatility. And as per the provision of Indians, we have recognized that -- because you know that exchange rate of dollar versus rupee has gone upside. And therefore, there is a loss to us also because we're reporting in dollar terms. So we have to convert and we are losing INR 60 crores in this quarter.
So this is all, and perhaps this robust signal has been due to optimization in our operations and hope we will continue to even in this period, which has been very difficult for us, but somehow we are able to manage it. And itself, we have reported higher ever PAT and PBT in the current quarter.
If you look at the total throughput, long-term contract and for short-term service, you'll find that in Q3, long-term contracts, which we have processed is 104 TBTU and Kochi has been 13 TBTU, total 117. This plant in short term, we have processed 3 TBTU in Dahej. And then service part, we have processed 47 TBTU in Dahej. So total makes it to 167 TBTU in this quarter as compared to 192 TBTU the previous quarter and 208 TBTU in the corresponding quarter.
So this is the result. Now you may ask the questions.
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Puneet from HSBC.
My first question is with respect to the income that you've recorded this year for use and pay charges of almost INR 849 crores. And there was a similar number, INR 415 crores or rather half of it last year. What is the progress in terms of negotiation? Have they recognized or have they even acknowledged this outstanding deals so far or not?
It has been our claim as for the contract. And continuously, we are following up with the customers that they should pay it because this is payable as per the contract. But as you know that so far, we have not received, this is true. But still we are focusing on getting the payment as early as possible. But if you look at the kind of situation which is prevailing, what's happening that volume itself is not coming too much to India. And that's why there's an issue and we have to book use or pay charge of INR 849 crores this year also.
So situation is difficult, but still we are making all efforts to recover this and perhaps we are still negotiating. We're continuously to them and making some -- whenever there is a progress, we will certainly report to you that how much we have recovered that this follow-up is continuous, and it has been, in fact, followed at a very senior level and let us hope that positive result should come out.
And is it fair to assume that there is no issue with respect to the other long-term volumes? That's so straightforward and you're getting paid for that?
Long-term volume, I think that is coming as usual. There is no issue as far as all the long-term contracts are concerned, Qatargas contract or the Exxon Mobil is there. If they are all coming and they are being paid in time, there is no issue. The problem is the service volume, which basically is the capacity booked where they had to bring some cargoes and get them reratified at our terminals. So that part has not been supplied. That is the only part which is lacking.
Okay. So in that context, can you give me the amount of receivables outstanding as of Q3 and net cash?
How much is outstanding?
Yes, total receivables end of Q3 and net cash end of Q3.
Total receivable is around -- total receivable, I'll tell you, it is there. I'm telling just a minute, it is there. It is to the tune of, as on 31st December, this is our receivables, 3,530 but this includes everything.
It includes the 1,200 [indiscernible] number as well.
Yes, yes, it includes 1,200 [indiscernible] and apart from other long-term contracts, this is also there.
And net cash?
Cash, we are having to the tune of almost INR 6,000 crores. Exactly, I will just tell you how much is that? Just a minute, I am telling the exact how much is there. INR 6,900 crores is the cash available as of now.
And if you can share the numbers for service income as well for the current quarter?
Service volume?
No, volume you shared, you also report the income from services. What is recorded?
INR 1,112 crores as against INR 438 crores in the previous quarter and INR 755 crores in the corresponding quarter.
Okay. And last one is an update on your CapEx plan. How is that going and where have you spent so far?
CapEx plan, as I've mentioned, we are continuously following up our 2 tanks are under construction. Approximately 50% progress is there. So INR 1,247 crores, whatever is there, INR 1,246 crores is there. And we are going for JP also. So that will be a CapEx of INR 1,700 crores. And we have already got the approval of both and we are now going for tendering process for awarding that job.
And apart from that, we have -- and we still have one terminal on the East Coast, Gopalpur terminal. So that part also is progressing. And in fact, it has been approved by the Board also. So now we are looking forward to have other agreements, implementation agreements and other agreements with the Gopalpur Port Trust and perhaps if that is done; thereafter, we will go ahead with the [indiscernible] for that. So all feasibility, environment clearance, all those things are required. That poses going up.
So that is also a CapEx of around INR 2,300 crores. And apart from that, as you know that we have already planned to have one PDH-PP plant in Dahej. So that part is still going on, and that is a CapEx, new CapEx, entitled CapEx item and involves around INR 13,000 crores, INR 14,000 crores investment, but that is an initial estimate because we are now looking forward to go for licensing selection process. And after selection as a licenser, we will go ahead with this approval from the Board for the plant. So like this, we are progressing.
And other CapEx plan, if you look at LNG stations is there, but that is, as we have mentioned, 4 stations, we are -- basically very shortly commissioned, I think. And they are under construction and more will come. But again, issue is that LNG, high price is there. So that is causing a worry, but now there is a silver lining that we are getting some price to fatigue. And in the current -- last 2 days, I've seen the price has been ranging from $16 to $20 in between.
So if that remains the price throughout the year, then we can think of some momentum and augmentation in the process of installation of LNG stations and conversion of trucks to LNG suit this. So all those things are there.
And other things I have already mentioned, I think CBG plants is also there, but that is, again, an issue the state government has to allow land to us, then we can think of it. But that is not the thing to help right now because we are not getting the line. Once we get the land, then we can think of those plants also.
Sorry to interrupt. May we ask Mr. Puneet to please rejoin the queue. We have participants waiting for their turn. The next question is from the line of Nitin Tiwari from Yes Securities.
First question is a bookkeeping one. How much of the Gorgon volume was at Dahej in this quarter?
5.44 physically at Dahej and [indiscernible].
The second question is regarding the regas service volume that we have in this quarter. So they are fairly low, although like there was a moderation in LNG prices, which you were seen progressively over the third quarter. So why this sudden drop? I mean, is there any significant contractors who has backed out? And related to that, the user pay that we have booked as of this quarter. Does that also include nonusage of regas service facility in this quarter and because the volumes are pretty low? So if you can just help me understand that.
[indiscernible] contract season, which is the calendar year which is for the entire 12 months. [indiscernible] and it's not that there was [indiscernible] prices, anything above [indiscernible] is not sustainable in the Indian market. So that's the reason the volumes are on the lower side. Just now, as Vivek mentioned that the prices are not [indiscernible] level, so we expect some [indiscernible] the value.
So prices were above 20 for most of the year. I mean for most of CY '22, but we saw a sharp drop in the third quarter and actually the prices started pooling up. So I'm just trying to like...
It depends on the alternative prices which are [indiscernible] pricing volume [indiscernible].
And volumes have reduced as well, Vivek has just told you. Also, because of some domestic gas was available in GAIL. So some of the customers have bought the volume from there also. So the high pressure, high temperature gas is available in the market. Those volumes are being lifted by the customer.
So the number of cargoes have not come for -- as far as the spot cargoes assets. So that is the basic reason, 2, 3 reasons, we can say that volumes have been low. But the reason is very obvious, prices are still high also. But we hope that now prices will come down because we see that there is less demand in the market, at least in the European market.
And because of that, the prices are lower. And we hope that this continues in the fourth quarter, then more volumes will come. Because I'm sure that if prices remain at this level, $16 to $20, then certainly spot cargoes will come to India in this quarter. So we are hoping and in fact, much harping on this particular theory that prices are down, people will buy and more cargoes will come and we'll get the volume for regas utilization.
Right, sir. Lastly, sir, just -- if I missed anything on the trading gain, can you repeat if you have already shared, you can please...
Trading gains, if you look at this quarter, it has been only INR 24 crores, INR 25 crores, INR 25 crores in this quarter. Not too much in this quarter trading gain. But it has been earlier substantial. But right now, it is not there. Trading volume I'm just telling you, in fact, INR 25 crores. Inventory valuation is 97 and this is INR 25 crores. So this is how we have performed.
Sorry, I didn't get the last part. You said INR 35 crores is?
INR 25 crores is the trading margin.
Right, sir.
And there's the inventory valuation also, which is INR 95 crores.
INR 95 crores.
You can add both of these and you can find the figure.
[Operator Instructions] The next question is from the line of Sabri Hazarika from Emkay Global.
So I have 2 questions. One is basically the Ind AS bookkeeping question. So from the...
Yes, that is AS...
Yes, yes. So what is the run rate for the quarter in terms of cost of goods sold, other expense, depreciation, interest and other income?
Yes, Sabri. INR [ 161 ] crores at the gross margin level positive. Then INR 60 crores ForEx loss.
ForEx loss of INR 60 crores, okay.
And INR 8 crores at the expenses level positive. And the depreciation is INR 84 crores and interest is INR 79 crores.
Okay. So INR 54 crores negative is the...
INR 54 crores negative.
So just a follow-up on this. So are we entering a level where I think this whole lease accounting is reversing now or...
As we had explained to you. The lease accounting will start reversing from FY '25.
Okay, from FY '25. Sorry.
For FY '24, it will come to a level of break even.
Right, sir. And 5.44 was the Gorgon volumes, right, in Dahej?
That's right.
Right. And second question is on the current scenario. I don't know whether you'll be able to share it or not. So what is the current utilization levels right now? So we have seen the prices come down, but maybe the...
Yes, yes. Utilization level is 81% as of now. This has increased as compared to this current quarter, we had just mentioned 58%. So now level has picked up. As you rightly said, I have said that prices are down. And even long-term prices are also very less this Friday. So [indiscernible] in between it is there. And when the [indiscernible] prices have come down 2 days, like it was $16 something. So I think if prices are at this range, volume will definitely come, and we will be able to process it. The utilization level is 81% as of now.
The next question is from the line of Pinakin Parekh from JPMorgan.
Sir, my first question is you mentioned that utilization levels have gone up. So is it fair to say at this point of time, fourth quarter we can see volumes between 190 to 200 TBTU?
Actually, this prediction cannot be given because as of now, it is looking good. But let some more time pass. It is only beginning of the quarter, fourth quarter. So it is too early to predict any volume right now, but you can see that 81% is how much...
Okay. So to that extent, sir -- understood. Sure, sir. My second point question is, given that the INR 800 crores plus of revenue booked for this take or pay in this quarter. So if we take that out, then the profitability picture looks different. Sir, is there -- now I understand that you mentioned that the company is in talks with the counterparties. But is there a time limit beyond which if it's not realized, then Petronet would have to write off this amount? What is the legal time limit where you can continue to show it as dues receivable?
See, it's not a legal question of legal time limit. It's the auditor's view. But in fact, we are confident that we will be able to sort it out. And we will try to do it in the next quarter itself if possible, at least for the last year, INR 415 crores, which is outstanding. This year only, we have just raised the bill and even date of payment is not due. So it is still not due. We have raised the bill only for INR 849 crores, but they have been shown as revenue, but -- and there is enough time to see how they react.
But last year, we are following up on INR 415 crores. And we will definitely try to recover entire amount, and then, of course, there should not be any issue of that provision. And this time, we have not made a provision, but we are going to aggressively follow it up in this quarter, fourth quarter.
The next question is from the line of Mayank from Morgan Stanley.
Sir, 2 questions from my side. First was in terms of the receivables, is there something that you will consider if you can't recover the entire amount by March in terms of the dividend? How will it impact your dividend payout? And the second question was related to long-term LNG sourcing. We have seen some peers in China had been actually starting to kind of look at long-term gas supplies beyond 2026. What is the thinking process at your end?
[Technical Difficulty]
Ladies and gentlemen, please stay connected. The line of the management got disconnected. Ladies and gentlemen, thank you for patiently holding the line, the management line is reconnected back. Thank you, and over to you, sir.
Please start from the person who was asking the question. I just forgot the name.
Sir, I'll repeat the questions. The first one was, sir, related to the dividends. This was regarding the receivables, the entire amount, you are not able to recover, especially for fiscal '23. How are you thinking about that impacting your dividend payout?
There is no link, yes. This is only -- 2 things are entirely different. Because for making payment of dividend, you need cash, and cash that much we have. So it will not impact the dividend, just be assured. This is something else because we are fighting for it and we will try to get it also. But at the same time, there is no cash shortage. So I don't think there is any impact on the dividend part.
Mayank, just to add to your answer, basically after the last year, I mean FY '22, we had booked some use or pay. But after that also, 2 dividends have been paid. And this year, whatever has been booked, the due date has not yet also come. We have just recently done the billing also a couple of days back as per the contract. So as sir has told that there is no link between these two.
Very clear. The second question was more related to a bit more long-term view. Now we have seen your peers starting to tie up long-term supplies beyond 2026, especially in countries outside India. So what has been your view or you still think it's too early to kind of go into the market?
No, no, it's not. We are already in the market. And in fact, we are already negotiating for our RasGas contract. That negotiation is already going on for renewal. And apart from that, we are also looking for some additional volumes to be taken. So that part is going on. And perhaps we have to finalize by this year only for the renewal of the contract and additional volume if at all. We are looking forward to that. So there is no reason why we should -- but at the same time, we would not like to enter into the contract where we are, in fact, supposed to make a payment, which is a little bit higher slope of the bent or a higher price gas.
So we are trying to get a reasonably priced gas. So that's why there might be some delay because the market is very hard. And it's such a hard market, if you go, certainly, prices will be higher. It's not fair to go for higher prices because this will pinch in the long term. So it's better to delay for some time till the time the prices are reasonable. And now we see that prices are coming down. Hopefully, this will remain in this range of $16 to $20.
So if this remains in that range, then we'll get a better slope in the market, apart from our renewal of RasGas volume. So that is there, but none of the Indian parties have entered any contract profile, but outside parties have done it, maybe China and other countries have done it. But we are trading with extreme care, and we are trying to go for a contract, which is reasonably priced so that in long term, that should not pinch.
The next question is from the line of Vikash Jain from CLSA.
Just one question on this use or pay income that we have put. Now when I look at the third-party volumes that has been booked for this calendar year versus last calendar year? Almost roughly, there's about 100 TBTU difference, 90 to 100 or whatever, around that ballpark. But if we were to look at what you had booked in 3Q and 4Q of last year, assuming that all of that was for calendar year 2021. Then from that perspective, should we expect you to book more in the first quarter as clearly, this number is similar to what you had booked during the last year, including the 2 quarters. So this number should be higher, right?
No. Actually, this year, we have booked for the entire year, for calendar year 2022. Last year, what happened that in 2021, we had booked INR 347 crores around of use or pay in the third quarter and INR 83 crores in the fourth quarter. So this was the segregation. So that's why you can say if you -- and that was for the calendar year 2021, both of these. So this -- both will make it around INR 430 crores of use or pay. So I think this is the right number if you compare from number to number because this year, it has been INR 849 crores. Last year, it has been INR 430 crores.
Sorry, that's what I'm comparing. So I mean from -- so INR 430 crores versus this year being -- sorry, 849. Okay. Sorry. Okay, understood.
The next question is from the line of Avinash Karumanchi from Equirus.
This is Maulik Patel. Sir, a couple of questions. One, have you taken the price hike at the hedge for this calendar year, 5% per annum?
5% per annum.
Yes, that has been taken, right?
Yes, yes, it is taken as per contract.
Okay. So the revised price is about INR 59?
It's around INR 59, I'm just telling you how much is that. INR 59 something is the exact price. Earlier, it was earlier [ 57-point ] something.
And sir, regarding this -- on this take or pay as you have clarified a lot, but what are the options we as in the company and the board is there. And in case this continues for another year and the price of the global LNG market remain high, there can be another [indiscernible] liability. How are we going to -- what the Board has discussed this matter? What are the options available to us apart from the pursuing the pending dues which you're probably doing it? And are you going to charge interest rate on the pending lease of CY '21? Because it's more than a year and we have not received the amount from the customers.
[Technical Difficulty]
Ladies and gentlemen, please take a minute as the line of the management is disconnected. Ladies and gentlemen, thank you for patiently holding your lines. The management line is reconnected. Thank you, and over to you, sir. We have Mr. Avinash in the queue. Please go ahead with your questions, sir.
This is Maulik Patel. You were telling me about that the tariffs.
You are telling -- we're telling that there is regas charges. So it is now INR 59.91.
INR 59.91, right? And what will be the charges at the Kochi, sir, it was around 80?
It is around 85 -- 81.04 is there. And it will be revised for '23, '24 next time. But it is now INR 81.04.
Sir, my second question is that on the takeoff, if this amount doesn't get -- are you going to charge interest rate on the CY '21? That's number one, pending amount of around INR 3.2 billion also? And secondly, sorry, INR 4.2 billion. And second is that what the bar has been on options to get this equal amount. Are there any bank guarantees, which has been with us as a part of the contract or apart from pursuing the negotiation or any legal measures which we can deploy?
So actually, if you look at the composition, the complete composition, it is that our promoters are our offtakers also. But they are not regular defaulters. This is an unprecedented situation, which is causing this kind of problem. But certainly, we still are following up for making the payment because ultimately, this is the contract that they had to get, not able to use. And perhaps issue is that if you ask for security, we certainly from, as a promoter, we don't have it right now. But there has never been a need also for that.
It has been in contract for the last almost 18, 19 years, and we have not seen any default. The first time ever this situation has come that they are not making payments. And perhaps we hope that this will be very shortly settled because we are following up. And we have taken a challenge that in this quarter, we will try to resolve it.
Sure, sir. Sir, this INR 1,300 crores of amount, is it pending both from your promoter and -- which is like GAIL and IOC and BPCL? Or is this largely from those other customers, which are not your promoters, which is like GSPC and Torrent?
It is all. It is all. Except GAIL, all are there in this 849. So GAIL has not defaulted at all. Otherwise, IOCL, BPCL, GSPC, Torrent, [indiscernible], all are there.
Got it. You mentioned about the CapEx for the pattern is around INR 13,000 crores? That was the indication amount?
INR 13,000 crores.
INR 13,000 crores. And that is likely to get approved by this -- the next quarter?
Not next quarter, I cannot comment because still we are in the process of licenser selection. Maybe within 6 months, we can say.
And what kind of a time duration once you get an approval from the Board because you already have a land which you write in the position. What kind of a time scale we are looking for to set up this project?
It's still almost 4 years, it will take almost, [Technical Difficulty] and awarding the job for the project. So it will be in a staggered manner. CapEx will not be in a day. This is for the span of almost 4 years like that.
The next question is from the line of Siddharth Chauhan from B&K Securities.
My question has been answered.
The next question is from the line of S Ramesh from Nirmal Bang Securities.
Good evening, and thank you very much. So if we have to understand the use or pay provision of INR 848 crores, that is entirely for April '22, March '23. So out of that, how much should we assume for the third quarter if we have to adjust those numbers?
Actually, this use or pay charges is valid once in a year. We don't account for it in every quarter because we give an opportunity to all the offtakers and all the customers that they should utilize within this calendar year. So it's basically calendar. As you said from 1st January 2022 to 31st December 2022. So if they are able to use their quantities booked in this period, then we don't levy anything. But after this date passes, means after 31st December, we levy this use or pay charges.
So in terms of the coming financial year, at what capacity utilization should we expect the company to be looking for?
We are very bullish about it, and we are expecting more than 80% and 81% is still we are going on. So now volume is coming. So we are hopeful that at least it will be in the range of 80% to 90% in between.
I understand that. So the question I'm trying to drop in with is, in future is the capacity utilization decline, how do we account for this in terms of making the estimates because if you go by [ 60% ], 70%, the earnings come lower than what you report. So how do we -- at what level capacity utilization should we expect the use or pay charges we booked even on a calendar year basis?
See, we don't expect any use or pay charges. In fact, we don't want it should happen at all. They should come and build capacity and use the capacity. And this is the intent of all the customers. They don't want to unnecessarily again get this bill for user charges. But this is compulsion because of the high prices of LNG. It has been there, but now prices are also coming down. If you see it has been in the range of $20, it is today, but yesterday I don't think $17, before that $16.
So in that range, if price is there, then perhaps you will find more cargoes coming here and customers would use it. But at this level, when it is $30, $35, $40, the consumption is very less because of the high prices. And certainly, we are now very hopeful that this kind of pricing of $16 to $20, we can expect more volumes at least in the third quarter -- fourth quarter and the capacity utilization will be much, much higher.
Okay. And then what is the status of the 2-phase expansion in Dahej. When do you see the complete closure of the projects and volumes contributing to your utilization, say in Dahej once the expansion is over?
You are talking about Dahej expansion of 5 MMTPA? So we expect that by the end of 2024, we should be able to get at least 2.5 MMTPA and by March '25, we should be able to get at least net 2.5 MMTPA. So by March, you can say March 2025, we should be able to get this capacity. And we are hopeful that, that capacity again will give us flexibility so that we can move more capacity of the customers. And perhaps, we can also think of more volumes coming in our own purpose also because you see we are, in fact, importing some cargoes on behalf of ONGC also.
So if we get some volume contracts, then we shall have that particular advantage and we can process it, we can store it in 2 times we are constructing. So there's a lot of business opportunities there because then we can also have some trading volume with us in future, if at all, there is an opportunity. So that kind of flexibility will be there. And apart from that, we are also looking forward to have some capacity booking for the expansion we are going for Dahej. We are very optimistic about this.
The next question is from the line of Somaiah V from Spark Institutional Equities.
So the first question in terms of the take or pay, the revenues that you have booked, what would be the equivalent volumes in both the years for calendar year '21. If you can give a number in TBTU for calendar year, '21, '22?
'21, '22, how much is the volume? You are talking about '21, '22?
For both the years, sir. Sir, calendar year '21, '22.
'21, '22, it was 80 TBTU. And for '22, it is 155 TBTU.
And second question is with respect to the [indiscernible] project. So what would be the IRR broadly that you'll be looking in for this project? And when do we expect CapEx to start for this project? And also you mentioned that it happened over a period of time. So any color on that, that will be helpful?
Okay. So IRR, as you know that we have a policy here that whatever project we undertake, there is a project approval authority, which ensures that unless we get some equity IRR of 15%, we don't go for the project. So in this case, we are getting a handsome IRR, and we cannot mention right now. These are premature things.
So -- but it is above 15% equity IRR, so that is for sure. And as far as the CapEx plan is concerned, which is basically I have told you that it will be in the staggered manner in the next 4 years after approval and awarding of the job. So hopefully, we can say that INR 30,000 crores will be spent not equally than certainly initially, it may be less INR 2,000 crores and then INR 3,000 crores, INR 4,000 crores like that and INR 5,000 crores. So it will be like that only. And '23, '24, it may be less. But in subsequent years, it may be high because we are expecting by '26 end. So it will be in a staggered manner, INR 2,000 crores to INR 4,000 crores.
One last question. Sir, what will be the CapEx profile for the next -- I mean, for this year, what would be your CapEx amount? And then what are we looking at next year at a company level? And when the Gopalpur expected to complete?
This actually -- next year, you are talking about '23, '24 or this year, you are talking, '22, '23. It will be at the rate of INR 1,200 crores, I think -- INR 1,250 crores approximately.
So you're referring to FY '23?
Next year, it even maybe higher than that, maybe around INR 1,800 crores will be next year, we are likely to spend. But this year, INR 1,200 crores you can say, exactly.
And the last part of the question, I mean, the Gopalpur terminal, when it will be expected to complete?
When it will be?
When it is expected to start the [indiscernible].
Yes, I just told you that we are still doing some due diligence regarding this agreement signing and all those things are being followed up. And certainly, we will enter the agreement with the port trust, Gopalpur Port Trust so that we get the right to build the terminal over there. We have, in fact, contacted the state government authorities and we are seeking some environment clearance and other clearances from the authorities.
And thereafter, we will, in fact, go for the awarding of jobs. So if you look at present, we have -- planning to have FSRU terminal. So it should not take too much time, 2 years' time, it should take if it is FSRU terminal after awarding the job. So we are -- first we're getting the -- trying to get the clearances so that -- and the agreement signed so that everything is based before awarding the work to the contractor for construction of the LNG terminal.
So it will be least, 2 years should not be -- not more than 2 years, it should be the time frame for construction of the FSRU terminal, Gopalpur. But this is after award of the job.
The next question is from the line of Puneet from HSBC. Please go ahead. Puneet, please go ahead with the question, your line is unmuted.
My questions have been answered.
Thank you. Ladies and gentlemen, this was the last question for today. I would now like to hand the conference over to Mr. Probal Sen for closing comments.
Hello?
Yes. Probal?
Yes, sir. Would you like to make any closing remarks, sir?
No. In fact, I have said everything whatever I had. The only thing is that I want to convey my sincere thanks to all the analysts and investors because they have reposed faith in us. And in fact, we are also trying to arise that our profitability always increases from the last time. So this is why that we are able to achieve even higher profit than previous corresponding quarters and previous quarters.
So our effort is there always to increase and augment the profitability as much as. And the only question was their high price of energy, which I think in due course of time will be addressed, and then we will have that 100% utilization of our terminal as we used to do earlier. So with this, I would like to close my remarks.
Thank you so much, Sir. It was a fairly insightful and a fairly detailed Q&A session. I thank all the participants and most importantly, the management. This is a tough macro environment for the gas space. So obviously, it's a challenging environment. And I think the performance has to be appreciated in that context. Thank you so much for your time, everyone. You can log off now.
Thanks to all of you.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.