Petronet LNG shares crash 8% after issuing force majeure notices amid Middle East hostilities

Shares of Petronet LNG tanked as much as 8% to their day’s low of Rs 284 on the BSE on Wednesday after the company informed exchanges that it has issued a force majeure notice to QatarEnergy in respect of its LNG tankers – Disha, Raahi and Aseem. In parallel, QatarEnergy, the company’s LNG supplier, has also indicated a potential force majeure event due to the ongoing hostilities in the region.

The company said the move follows supply disruptions arising from the ongoing war in the Middle East involving Iran and Israel. In a regulatory filing, it stated that the vessels are currently unable to safely transit through the Strait of Hormuz, also referred to as the Gulf of Hormuz, to reach Ras Laffan, QatarEnergy’s loading port.

Petronet LNG has also issued corresponding force majeure notices to its key off-takers, GAIL (India) Limited, Indian Oil Corporation Limited, and Bharat Petroleum Corporation, under the relevant Gas Sale and Purchase Agreements on March 3, 2026.

The company further clarified that acts of war are excluded under its business interruption insurance coverage. Petronet LNG said the likely impact of the ongoing force majeure event cannot be assessed at this stage. It added that it is closely monitoring the situation and will keep the stock exchanges informed of any material developments.

Force majeure, a French term meaning “superior force”, is a standard contractual provision that releases parties from liability or performance obligations when an exceptional and unforeseeable event beyond their control, such as war, strikes, riots, crime, epidemics, or natural disasters, makes it impossible to fulfil agreed contractual commitments.

Petronet LNG Q3 snapshot

Petronet LNG reported a sequential rise in profit for the December quarter, supported by stronger operating performance and improved margins.
The company posted a 5.2% quarter-on-quarter increase in net profit to Rs 848.3 crore, compared with Rs 806 crore in the previous quarter. Revenue rose 1.4% QoQ to Rs 11,163 crore from Rs 11,009 crore.
Operating metrics also strengthened during the quarter, with EBITDA climbing 7.3% to Rs 1,199 crore from Rs 1,117 crore in the preceding quarter. EBITDA margin improved to 10.7% from 10.1% on a sequential basis.

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