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Petronet LNG Ltd
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Ladies and gentlemen, good day and welcome to the Petronet LNG Q4 FY '23 Results Call hosted by Axis Capital Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Murarka from Axis Capital. Thank you and over to you sir.
Thank you, Robin. Good evening, everyone. Thank you for taking the time out to attend this post-results call of Petronet LNG. We have with us the Senior Manager of Petronet LNG, starting with Mr. Vinod Kumar Mishra, the Director of Finance; Mr. Rakesh Chawla, who is GGM and President of Finance and Accounts; Mr. G.K. Sharma, CGM and Vice President, Marketing; Mr. Vivek Mittal, CGM and Vice President, Marketing. Debabrata Satpathy, who is the General Manager of F&A as well as Mr. Ashwani Agarwal, who is the Manager of F&A.
Without much ado, I will hand over the floor to the management for their opening remarks. Post that, we'll have the Q&A. Over to you, Mr. Mishra.
Thank you. Very good evening to all of you. And I start with the performance of the company. And if you see the main highlights of the company, it has been INR 59,899 crores in financial year 2022, '23. And there is a surge of around 39% from the previous year as compared to INR 43,169 crores. And if you look at the throughput of the Dahej terminal, it has been very promising because we have been able to have a throughput of 172 TBTU as against 154 TBTU in the previous quarter and 178 TBTU in the corresponding quarter. And total throughput, both Dahej and Kochi have been 185 TBTU against 167 TBTU in the previous quarter and 190 TBTU in the corresponding quarter.
And if you look at the yearly basis throughput, then you will find that it is not as high as it was last year. Of course, Dahej has a throughput of 704 TBTU as against 793 TBTU in the previous year. And Kochi had 48 TBTU throughput as against 54 TBTU as corresponding year, last year. So this is how the physical performance has been. And if you look at the quarterly results, then profit, PBT has been INR 818 crore, as against INR 1,586 crores in the previous quarter and INR 984 crores in the corresponding quarter of the previous year. And PAT has been INR 614 crores as against INR 1,181 crores in the previous quarter and INR 750 crores in the corresponding quarter of the previous year. And on a yearly basis, PAT and PBT has been INR 4,335 crores as against INR 4,474 crore in the previous year and PAT has been INR 3,240 crores as against PAT of INR 3,352 crores in the previous year.
So this is the total performance of the company. And apart from that, there is slight downward trend you see in the profitability. And this is mainly because of NDS impact of the foreign exchange variation, which has been to the extent of INR 258 crores. And apart from that, we have declared a dividend of INR 3 per share, apart from the INR 7. We have declared as interim dividend in the second quarter -- after second quarter.
So this is how we have performed and now house is open for the questions.
[Operator Instructions] The first question is from the line of Probal Sen from ICICI Securities.
Two questions. One, what we have seen is despite the spot energy prices dropping off quite a bit in this quarter, our third-party or service revenue volumes have -- are yet to reach anywhere near our normal run rate of between 75 to 80 PBT. So just wanted to get a sense, is it because the contracts don't really work in tandem with how soon prices are changing? Or will they need to drop even more from here for our volumes to recover back to, let's say about 75 to 80 TBTUs? That was my first question.
First question, you are asking that there has been a normal this downfall in the prices of LNG and still service cargoes are not increasing to that extent. But you see that there has been surge to the extent 61 TBTU in this quarter as against 47 TBTU in the previous quarter.
There has been a rise in the service cargoes. That means these service cargoes may be -- as a spot, it may be under the long-term contract of the off-ticker. So we are getting a higher number of cargoes now in this fourth quarter. And if you look at April data, it is even higher and we are getting a good number of cargoes now, and 21 cargoes have come so far in April also, out of which 11 are on service cargo and 10 are long term.
So we can say gradually, situation is improving and prices have started declining only after February. So you cannot say entire quarter, there was a lower prices. It was only after February that prices have come down. It takes time for the customers to adjust to procure the cargo. So it's not that in a day, you will find a cargo. Whenever price is declared, it's almost 2 months later. So we can say that is gradually improving now and perhaps more cargoes will come in this current year, in this quarter.
Got it. Second question was more of housekeeping, sir. Can you share the regas service revenue for the quarter?
Regas service revenue is to the extent of this quarter...
INR 359 crores.
Yes, INR 359 crores.
INR 359 crores. If I can squeeze in just 1 more question. Any update sir on our plans for the petrochemical project, any format of the final CapEx time lines? Anything you can share.
Petrochemical is going on. And at present, we can say that DFR has been prepared. We are in the process of a licensor selection. And once the licensor is selected, thereafter, we will have the DFR prepared by the Consultant, and then we will go to the Board for approval of the project. And thereafter, activities will start. So we will have to wait for some time at least. It may take may be 2 to 3 months, at least for selection of these licenses. And thereafter, maybe in next 1 or 2 months, DFR will be ready by the Consultant. Then we will go to the Board. So 3 or 4 months, we can say right now.
Got it. Okay. Any indicative investment that you -- any changes in terms of the number because I believe we had shared about, I think INR 14,000 crores was the indicator on that.
That is the range we are still estimating because we are not still clear how much will be the CapEx because once the licensor selection is made, then only we can come to know how much is the CapEx because it's based on the technology. Whatever technology we are selecting, it is having a different kind of requirements for the equipment, for the raw material and for other catalysts. So those things can be known only after the selection of licenses. Because whatever technology we are selecting, it has different kind of CapEx, each technology. So that's why we can say that still we are keeping that CapEx at INR 14,000 crores.
We have the next question from the line of Somaiah V from Avendus Spark.
So can you just give us an update on the key projects that you are working on, Dahej expansion, Gopalpur, FSRU? And also the CapEx outlook maybe for the next couple of days.
Dahej, you know that this plan is already going off. Tank construction is going on and perhaps if you look at the CapEx, which we are estimating this time with CapEx. Total CapEx that is around INR 1,250 crores, out of which, I think, INR 744 crores we have already incurred and balance is left. So balance should be this year and then slightly it may be next year.
So this is total CapEx of Dahej tank. And then jetty, we are going to construct INR 1,650 crores, that is the CapEx. And we have already started process for awarding the job for jetty construction. And CapEx is already there INR 1650 crores. And then we come to Dahej expansion plan, which we have from 17.5 to 22.5 MMTPA. That is also having a CapEx of around INR 570 crores. So that is the CapEx for Dahej and apart from that, petrochemical, I have already mentioned that whenever it comes, it will be estimated at INR 14,000 crores. So that will be there.
And apart from that, we are also thinking of some 1 more tank at Kochi. So perhaps we will go ahead with that plan in the future. So if at all it comes and approval is given, then we will have CapEx of INR 600 crores. So this is how and apart from that we have contract -- we have the proposal approved for Gopalpur Terminal. So there also, we have a CapEx of INR 2,300 crores. FSRU terminal we are going to construct. So this is how CapEx plan is there and I think more will come at all if there is any CapEx. But right now, this is immediate CapEx plan we have.
What will be the next couple of years our CapEx outlook in terms of annual CapEx end?
CapEx outlook as you know that whatever CapEx is coming up, there's a big ticket capital, this commitment could be petrochemical plant. So for that, we have thought out some debt-equity ratio of 70:30. So those kind of plant perhaps we will rationalize it and will have 30% equity, 70% debt. And apart from the 2,300 -- Gopalpur project, INR 2,300 crores, that also -- that's not a big CapEx, but we may think of some debt if required. So that way, plan is clear that we will optimize the cost through this kind of debt mix for the major projects. But of course for small project like expansion plan, we are not going to have some financing arrangement.
So thanks, we don't have any financing arrangement. It's a very small CapEx. So we are meeting from our internal resources. So this is how we are going to plan for CapEx in future.
Got it, sir. I just was looking more from an annual CapEx plan. As in this year, we spent around, FY '23, INR 1,000 crores. So what would be the equivalent number for us for FY '24 ?
Next year, I can tell you that it will be around INR 1,700 crores, means this to current year, which is going on, April to March '23-'24.
Got it. Sir. And also, any plans on the cash that we have? Anything from an incremental dividend angle? Or is it because of the petrochem project, you probably want to come to, so I mean any thoughts around the cash balance?
See, I have just mentioned that dividend part will be taken care of. That's why we are already planning to have some debt equity mix of 70:30 for petrochemical plant. So this is a lot, put burden on the equity itself. And you know internal generation is already there to the extent of almost INR 3,300 crores every year. So that way, there should not be stress on cash and perhaps dividend part will continue to be paid over there. So that's why we are planning in such a way that dividend payout is not affected. And at least we are able to make 100% dividend payout ratio. That should continue. This is our plan. That's what we are thinking of.
Got it. Just one last question from my side. So this take-or-pay charges, which we accounted in the last quarter. So the status on that in terms of receiving what is the amount that's being received so far? And what is an outstanding?
Yes. So we have booked the use of pay charges for the cargoes, which have been defaulted by the off-takers. But the only thing is that we are pursuing for that and perhaps we are hopeful that should be paid by them. This is as per contract. And some of them have recognized that. But of course, we have to see that how we have to recover it, but the process is going on. We are trying to recover it in best possible way. And hopefully, we should recover those costs and perhaps in next year when the prices are normal for LNG, then for us there should not be any default on their part. So we are hopeful that in future, it will not be there. But for the past, we have to, of course, recover those charges. For that, we are making all our efforts to recover.
So the INR 850-odd crores that we had booked. So still it remains as a receivable. Is that the right understanding?
Yes, still -- you are saying it is receivable.
Yes. So we have not got anything for that INR 850 crores.
We have not got anything so far.
The next question is from the line of Siddharth Chauhan from Batlivala & Karani Securities India Private Limited.
So just 2 questions from me. One, on the other expenses side that there seems to be a slight increase in this quarter. So is that seasonality or is there something else as well?
Increase in throughput.
Other expenses.
So there is actually a provision for INR 55 crores for some arbitration award. So that is the main reason and that's why I think it has increased.
Okay. So your voice was not very clear. So INR 55 crores for what?
Yes. There is a provision for arbitrage award.
Arbitrage award. Okay. Okay. That helps. And just to clarify, so one more tank at Kochi will be a CapEx of INR 600 crores, right?
Yes. Yes.
Yes, okay. And last question, just on the Gopalpur, FSRU. So my understanding is you have previously guided for 2 years odd of construction time. Now what we are seeing right now is there is a lot of tightness coming into the oil service chain. Yards globally are sort of getting pulled, shipyards are already pulled? And the ones in Southeast Asia, which sort of do these kind of FSRUs, there might also be getting lower from offshore. So I'm just wondering if that 2-year time line is kind of achievable on the FSRU.
Yes. We are still exploring the possibilities how we can secure that FSRU. And for that, we have to find a Consultant and see how we can do it. But we will first explore it and try to get it. And let us see what happens. But we cannot say we will get it or not get it. But we have some alternative plan also for this. If we are not able to secure some FSRU, then we will go ahead with the land-based terminal.
The next question is from the line of Kirtan Mehta from BOB Capital Markets.
In terms of the -- you mentioned that for FY '22 results you are pursuing with the users. In terms of the step-wise to get the acknowledgment from here, what are the steps that would be needed at your end to sort of convert this into either the receivable or sort of decide on whether to pursue it or not?
See, we are in fact trying to talk to them every time and this has been as per the contract. They know it very well. One thing I can say that some of the customers have already directed TDS. That means they have recognized this liability in their books of account. So that is, in fact, a matter of satisfaction that at least they have come to this level that they have recognized the liability in their books. But I will not disclose the names, but some of them have recognized the liability for that.
Great. Would you -- in terms of sort of the escalation, if you need to lose, would it be sort of the escalation to the ministry to get this resolved? And could it happen before the finalization of the FY '23 annual report.
Escalation in terms of recovery you are speaking.
Yes.
Yes. Escalation is the normal process as per the contract, we are taking. We are asking them to give it, then the process given nothing is happening, then there is an arbitration process is already was provided in the contract, if it is not usually agreed upon. So that is a legal process and if we are not able to recover it.
Right. Just another question was about the sort of being going back to the higher level of sort of close to 90% utilization. Is this price like sufficient or would you need prices to sort of become a bit more improved from before we can achieve the 90%-plus utilization?
See, the price have come down almost $11, $10, it is going on. So prices, of course, have come to a reasonable level. But if it goes down, it is still better. But even at this level, you see that in April month itself, we have reached a utilization level of 97%. So that way we have already crossed in this month, at least. But of course, in the last quarter, if you see, it has been only 77% around, you can say on a yearly basis. But this is a good sign that at least we are now improving and more cargoes are coming. And hopefully, May will also be very good. So let us hope for the best, at least for this quarter and if this price trend continues for a longer time, then I think more and more spot cargoes will come to India.
Right. So when you say the utilization has improved to 97% level, are we also seeing this surge in the spot cargoes as well?
See, I can say it's not known to how much, but our service cargoes have increased. But this much I can say that there is a long-term contract, which is being met as per scheduled ADP, whatever is annual delivery plan. And service cargoes, which we are not coming earlier are now -- have started coming now. So in April, it has been good number of cargoes have come and you can see that the situation has improved. That's why the utilization level has increased to 97% and one more good thing is that at least for this 6-month period, Dabhol will be closed. So more cargoes from GAIL will come at least for the next 6 months.
Right? If I can squeeze in one more question. In terms of Kochi tank, we are currently operating at a utilization of the 20% level and we are looking for adding that tank. So what are the viability assumptions that we take to justify the viability of the Kochi tank?
Kochi tariff you are talking about?
Kochi -- you mentioned that we are considering options to add a tank at Kochi, which will cost us a CapEx of around INR 600 crores.
Yes. Yes. Actually we are putting up a tank over there because this gives us a flexibility for trading the LNG cargoes. Right now, it's a tied up. So we are thinking of having it for future. And more -- one good news is that today in the Board meeting itself, it was declared that GAIL's pipeline from Kochi to Bangalore may be commissioned by, you can say, next year, November 2024. If that is happening, that kind of commitment is coming from GAIL. So I think the utilization level can go up to 35% to 50% also next year. After commissioning, it's not right now. May be this financial year it is not possible, but next year, it is possible because GAIL's Chairman himself has said that it is likely to be completed by November 2024.
And it will be connected with the National Gas Grid, then it's quite possible to use it more and more because swapping mechanism is always there. And more CGDs will be coming. So they will have fair share of LNG usage because the swapping can be done and gas can be supplied from our terminals to those CGD entities. So that is the kind of plan you are having and perhaps the pipeline is a major entrance and once this is overcome, then perhaps you will be able to have more uses of our Kochi terminals in future.
We have the next question from the line of Yogesh Patil from Dolat Capital.
So in the last few quarters, we have seen a gain on the sale of spot LNG, which boosted the profit. What was amount in this quarter, quarter 4 FY '23? Can you please share it?
Yes. We will tell you. Just a minute. Hold on. Trading margin is INR 73 crores.
Okay. So second question, considering the fall in spot LNG prices in current scenario and the rising demand of gas, is there any provision in a use or pay contract that if the off-takers regasify the higher quantity of gas in this calendar year than previous year shortfall can be offset?
No. There is no provision as such because these capacities have to be utilized within the calendar year itself. If it is not done, then the use of charges are levied. So it is not provided in this contract. So there is no provision .
Okay. And the last one sir from my side. Sir, please correct me if I'm wrong. In 2026, additional 0.6 MMTPA LNG will be coming to India from ExxonMobil. Is it a part of a Gorgon volume existing 1.44 MMTPA or this would be addition to 1.44 MMTPA value?
It is additional contract we have entered at the time of negotiation with ExxonMobil. That in fact, this is not 0.6 is a ramp-up period. So it will be coming to the extent of 1.2 MMTPA. From 2026, it will be 0.6 and from 2028 onward, it will be 1.2 MMTPA in addition to 1.4 to 5. So total, it will become around 2.625 after 2028, that means that Kochi terminal itself will be utilized by that time, at least up to 50%. Apart from whatever I'm saying that after this completion of pipeline, more utilization will be there, more volume will come there when this contract will be implemented in 2026. So I think that is there.
And what would be the pricing agreement for the additional volume?
Pricing tariff will -- I think the tariff will continue what is going on right now.
Okay. And the pricing part of LNG would be the same [ 13% ].
Pricing part -- it will be 13.95% -- it will be same.
The next question is from the line of Maulik Patel from Equirus.
Sir, one question. You mentioned that there has been an uptick in the regas volume. Historically, in this Q1, Q2 because of the partial shutdown of the Dabhol to generally do around 1.9 million to 2 million tonne of quarterly regas volume. Are you confident that you will achieve that past run rate?
You are saying that after the shutdown of Dabhol, whatever volume was there last year, it will continue.
You mean past is the last year's level?
No. I think year before that.
So as we mentioned at the beginning of call, the spot prices have come up. So we are expecting utilization levels to go up what it would be actually, it's difficult to predict given the number because we expect definitely better than last year.
Got it. Got it. And the second question is on your -- any other development related to this biogas or the LNG systems, anything you are pursuing apart from the petchem projects and Gopalpur?
Yes. This compressed biogas is, of course, we are thinking of, but it's not in a big way. Right now, we are supposing to have at least 4, 5 CGD stations. So that have been incorporated in our CapEx plan. So that is there, 5 LNG -- the CGD stations. But as and then it will come, we will again inform you. And as far as SSLNG is concerned, we have already 4 stations commissioned almost, but some approvals are awaited.
So with IOCL, we have already installed LNG stations at 4 places. And more will come in due course. Because of this instability in the price, volatility in the prices of LNG, this segment could not get so much of attention with the consumers because high price of LNG was not affordable in this market. But now since the prices have started coming down, so we hope that this segment will further now take is right and it will perhaps go in a good way in future.
Sure. So what's happening on the RasGas renegotiation, we understand. I mean if we look at the last couple of months news, Germany has done 1 contract with Qatar. China has -- did 2 contract with Qatar, and they took some equity stake in that North field. But what we are doing is in the country, the PLNG has been a negotiating agency with Qatar. Any update which we can expect for this renegotiation part or an incremental volume we have part of that contract or the negotiation?
No. It's -- actually, I can just only share that we have to finalize this contract for renewal by the end of this year for the extension beyond 2028. This is what we are fulfilling with. So we are now concerned with the renewal of the existing contract beyond 2028. So that is going on as and when something is finalized, we will come back to you and declare it. But right now, we cannot share it in what is going on. But of course, we are in the process because we have to finalize this by December 2023.
The next question is from the line of Sabri Hazarika from Emkay Global.
Yes. Usual bookkeeping question with respect to IndAS and Gorgon volumes in Dahej.
Yes, Sabri. IndAS at the gross margin level, INR 156 crores, positive. Then ForEx gained INR 23 crores positive. Then reversal of expenses -- am I audible?
Yes. Yes. INR 23 crore positive ForEx gain, right, okay?
ForEx gain. And other expenses level, INR 8 crores positive. And then depreciation of INR 82 crores and the finance cost INR 71 crores.
Finance cost, INR 71 crores. So PBT level INR 34 crores, right?
INR 33 crores, yes.
Trading gain, you say, about INR 73 crores, right?
Yes.
And any inventory gain loss during the quarter?
Inventory gain is INR 22 crores.
Gross margin you said was INR 156 crores, right? Okay. And what was the Gorgon volume at Dahej?
Gorgon volumes at Dahej.
for the quarter.
Yes.
And second question is, sir, on this Dahej utilization. So you mentioned the April average itself went up to 97%. You said.
Yes. Yes.
And -- which are the sectors which has driven it, I mean, in terms of in consumption, was it power sector predominantly? Or was it broad-based?
See, the prices has become comparatively affordable. And with respect to alternate fuel, so it is not only power, other industrial consumer sector also has come up. Though you were using other alternatives.
Okay. So it was across the board improvement you have seen. So it's not because of the temperature, which has led to basically power sector ...
Not really. That is just part contribution and that's too not that significant. I would say it is more of an industrial consumers and across the board. So refineries as well as petrochemical, ceramics, everyone has come up.
Okay. And regarding this new HPHT gas coming, 6 MMSCMD has come. So do you think this can be a threat or you see it getting absorbed with respect to new customers?
See, market is enough and I think it is not a matter of threat. The threat is to the alternate fuels, not to our LNG.
One more I will add to what he's saying. If you look at the long-term prices also, they are at $10, $11. HPHT is already $12.16. So now it's almost matching, not much different. So that way you can see that hardly better is a threat. I don't see it as a threat now.
Right. I got it. And your FY '23 CapEx was INR 1,000 crores. Was that right?
'23, which has passed. Okay, yes, it's around INR 900-something crores -- INR 950 crores.
INR 950 crores.
The next question is from the line of Puneet from HSBC.
My first question is with respect to the user pay contract -- so is my understanding correct that roughly INR 850 crores in the previous year's, INR 415-odd crores, both are unrecognized.
See, the INR 850 crores is raised this year only. So it is a recent one. We are foreseeing that. As far as INR 415 crores last year is concerned, that is also part of it. So we have already rigorously following it up with them. And in fact, as and when some solution will come out, it will be known to all. But it's very clear that we are rigorously following it. And it's not that we are going to waive it. So we will have it and we will try that they should pay it. And then we'll see how we can go ahead because after all, this is payable as per the contract.
Correct. Correct. Absolutely, absolutely. But we haven't recognized it at all, right? It's been 1-year at least on that number, previous year's number also. There is no further discussion, if I were to put it that way.
[Technical Difficulty]
Sorry to interrupt, but we seem to have lost the line for the management. We request you all to please stay with us. We will reconnect with the management.
Yes. So what I'm trying to understand is, even for the calendar year '21, INR 415 crores, there has been no progress with the offtakers. Is that understanding broadly okay?
No. No. Progress is that we are following it up. And perhaps some of the customers have started deducting TDS also. That means they have started recognizing the liability at least in their books. So this is a major thing, if it is happening at all because as per contract, this is a liability. In fact, there should be a burden on them, why they are not showing it as liability. It's not that we have waived it. We are not going to waive it like that. It is their liability, they have to pay it.
Okay. Understood. That's helpful. And secondly, on your Gopalpur, do you have the Board approval yet for INR 2300 crores? Or are we still waiting for that?
No. No. We have got the approval of board. We are going ahead now. We are now finalizing the transaction documents with Gopalpur Port Limited. And after that, we will start lining up the contract for construction of the jetty and other facilities for the FSRU terminal.
But in case you don't get FSRU, which you said that you are looking for alternate land that will also .
That is there always in mind because we are also having some issue because as you know very well that many of the FSRUs now are working in Europe because of that change last year, a lot of LNG coming up there. So we have to see the availability of the FSRU because it will be known only after we do some tendering process and seek the tenders. If something is happening, then only we will go ahead. If you find that there is no possibility of FSRU availability, then we will go ahead with the land-based terminal.
And will you have to go back to the Board for approval or the approval stand?
We will have to go back to the Board because we need to have the additional CapEx approval. And apart from that, we have already informed Board in this regard that we have an option to go to land-based terminal for some time after FSRU. So that option is already informed. Only thing additional CapEx, we will have to work out if it is not FSRU and then we'll go back to Board for additional part of CapEx approval.
Understood. And you said that for the Kochi to Bangalore pipeline, which is scheduled for November 2024, is there any opportunity to increase offtake from Kochi in the interim?
If you see even now, we are utilizing 20%, almost 1 MMTPA already being utilized. And now we are hoping that MRPL and OMPL will also come back to this LNG usage in case of alternate fuels, they were using. So I think that is a silver lining we have that at least MRPL one of the big customers and OMPL they will start using natural gas again in that reason. So 25% to 30%, if they start using it.
Okay. So your 20% goal up to 25% level.
25%, maybe 30% also. It depends upon price trend to continue like this $11 and $10. They will continue and this will increase only in future.
The next question is from the line of Varatharajan Sivasankaran from Antique Limited.
My question was just answered.
We have the next question from the line of Hema, an Individual Investor.
Just to ask, pre-COVID like FY '19, FY '20, what was our Dahej and Kochi annual production? Like this year, you said 704 and 48 for Kochi, and 704 for Dahej. What was it for FY '20, if you have it in case?
'21 and '22, I have told you, 54 it was there. But '20 and '21 -- '19 and '20, I would like to see it, I have got the data for last year. Just a minute hold on, I'll let you know. But you are asking too much of that, it was COVID period I think. '19 and '20 was before COVID. So it is not much, yes. I think it's still almost 41.88 for the '19 and '20.
You are talking of Kochi terminal.
And Dahej?
Dahej in '19 and '20.
Yes. If you have it, sir. If not, then I'm...
I'm trying to have it, 885 TBTU.
Sir, just -- do you believe like this year with prices that stay at $11 and $12. Would it be aspirational to go back to those levels back to '19, '20 levels, even at these $11, $12. Or is it too high of a price?
See, it's only gas work you are asking me to do. We are hoping that it will go to that level at least. As I have said that April has shown that there is a good utilization of terminal -- Dahej terminal. So I hope that it will further increase in future because there has been overall less LNG import in last financial year, '22 and '23. So that way, you can say this has impacted our utilization. But once it comes to normal, then you'll find that it will be going up to at least 90% level. I cannot say it will go beyond 100%, but 90% is achievable in this kind of prices. 97% is still we are running in April.
The next question is from the line of S. Ramesh from Nirmal Bang Equities.
You mentioned that there is a ForEx loss of INR 258 crores. So where is that included in your P&L?
It's in the other expenses.
So the entire other expense is FX loss.
No. No. INR 258 crores is for the year.
What is it for the quarter?
For the quarter, there is a INR 23 crores gain.
Okay. Okay. Fair enough. So this rate was for the year.
Yes. Yes.
Fair enough. And the second thought is now with a lot of new LNG terminals coming up, I think Chhara terminal is coming up. So while if you take a 4, 5-year, I guess, LNG share can be sustained. So is there any risk to your utilization rates if Chhara terminal is commissioned and a couple of other terminals that go up in the region.
I don't think so -- see we are already having our capacity book to the extent of almost 15.75 MMTPA of Dahej. This 7.5 MMTPA is Qatar gas contract and 8.25 MMTPA is the capacity booked by the offtakers. So 15.75 at least I have -- which is almost 85% to 90% of the capacity. So I am not having any threat from anybody because we have long-term contracts with our offtakers, our promoters. So that way we are secured. So be assured that whatever terminals are coming, in fact, this is a challenge for them how to run those terminals.
We don't have a challenge, only fight could be that additional volumes will come, but the kind of connectivity, kind of evacuation we have, no other terminal can have. It's simply having a terminal is not enough. Pipeline connected, it is a big issue. Many terminals are not able to run because of that connectivity. You see many terminals are located at a place where there is no pipeline connectivity or very less connectivity. So that way, this terminal is far, far better than any other terminal.
So I don't foresee any threat from them. But of course, if they are coming and entire consumption is also going to increase in future. As you know, that whatever this plan of the government of India to increase the share of national gas, 6% to 15% with upcoming CGD entities, having so many projects coming up in the next 4 or 5 years wherefrom they will get the gas. It will be only through this terminal everywhere domestic gas availability is not there. So they will swap the gas with the domestic gas and supply from the LNG terminals. This will happen because Southern India doesn't have so much of domestic gas. So ultimately, these terminals will be utilized in future.
If you look at Kochi, what is the status of the use or pay for Kochi for the current volumes and for the increased capacity utilization? Have you already tied up a user pay or as the network -- evacuation network comes in place, you will start arranging for use or pay?
No. No it's not. See, capacity booking is only at Dahej terminal, first thing. Kochi terminal is only receiving the volume from ExxonMobil. And that contract, we had entered for 1.4 to 5 MMTPA. So it was supposed to be brought to Kochi. But because of connectivity issues and consumption level at Kochi, some of the cargoes are coming to the Dahej. So that way, we are utilizing because demand should be there. As of now, there is not so much of demand at Kochi. But there is the only contract for 1.4 to 5 MMTPA with ExxonMobil, which is again a back-to-back contract with offtakers. So that way, they have to take that gas, either at...
[Technical Difficulty]
Sorry to interrupt sir. We have -- the line for the management has disconnected. Please stay with us, sir, while we reconnect.
Yes. So I was just talking that Kochi terminal has the contract of 1.4 to 5 MMTPAs with ExxonMobil, but that is not a use or pay contract. It's a contract for back-to-back delivery of the RLNG to offtakers. And you know that contract has a ratio of 40% BPCL, 30% IOCL, 30% GAIL. So that way it is distributed. So that contract was entered just to utilize Kochi terminal. And in addition to that, there is additional gas coming up from 2026 of 0.67 MMTPA for 2 years or 3 years and then 1.2 MMTPA. So total 2.62 MMTPA contracts are, in fact, should come in Kochi, but because utilization is not that much in Kochi. So some of the cargoes we are bringing to Dahej.
Understood. If I may just squeezing one more question. So in FY '23, you've already booked some use or pay claims, they kind of normalize the margin. So if you were to look at profit growth for FY '24 assuming 90% capacity utilization, is it possible to show some growth in the profit after tax for FY '24 on the base you have already reported in FY '23?
See, this is all -- I had said this is gas work. But we -- in fact, intend to do so. We want to show the growth in profit because once the volume comes and the way it is coming in April and May, I think there is no doubt that we should increase the present profitability growth rate. And maybe that next year, we should be better than this year because I am again saying that if the prices are reasonably okay, say, $8, $9, $10, we will be able to utilize our terminal in the best possible way. And then profitability will automatically increase.
Ladies and gentlemen, that would be our last question for today. I would now like to hand the conference over to Mr. Amit Murarka for closing comments. Over to you, sir.
Thanks, Robin. Thank you everyone for your time on the call today. Like I would now hand over the floor back to Mr. Mishra for any closing comments if you have, sir.
Thank you very much and for the patience you have shown in listing my answer. And whatever question you have, you can ask again if you have not been able to ask here through e-mail to our team. And perhaps we are, in fact, so glad that you are reposing faith in Petronet LNG. But once again, I will say that the kind of model which PLL has is the robust model in the market, profitability is assured, contracts are assured, come what way the use or pay charges or take-or-pay charges will ensure that profitability is not going down substantially and [Technical Difficulty]
Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.