A question on inflight report

[CDR]

In inflight report,
I read this,

With one hour reserve 2:42,
Does this mean that I can fly for 2:42 hours and still have a one hour reserve fuel left ?

Pappy

[Garbagecan]

yes it does, however you should arrive at your destination before or at 2.42h or else you will receive a penalty for not having enough
reserve fuel onboard

victor