Motilal Oswal - Petronet Lng Limited (PETRONET) MOSL: PETRONET LNG (Buy)-Higher Dahej utilization drives a superior EBTIDA performance

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Motilal Oswal

Swarnendu Bhushan

MOSL: PETRONET LNG (Buy)-Higher Dahej utilization drives a superior EBTIDA performance

Petronet LNG: Higher Dahej utilization drives a superior EBTIDA performance

(PLNG IN, Mkt Cap USD5.0b, CMP INR231, TP INR312, 35% Upside, Buy)

EBITDA of INR9.3b (+26% YoY, +14% QoQ) came in above our estimate of INR8.5b, mainly led by higher utilization at the Dahej terminal. Other expenses were sequentially lower due to better operational efficiency. PAT grew 34% YoY (+12% QoQ) to INR5.9b, above our estimate of INR5.6b. The difference at the PAT level declined due to a higher-than-expected tax rate of 34% (est. of 33%) and interest cost of INR300m (est. of INR147m; -35% YoY, -10% QoQ).
Dahej throughput grew 16% YoY (+3% QoQ) to 214tbtu (est. of 207tbtu), implying 113% utilization of 15mmt capacity. This throughput includes (in tbtu) long term: 112 (+7% YoY, -3% QoQ), third-party: 97 (+23% YoY, +15% QoQ), and short term: 5 (+567% YoY, -30% QoQ). Marketing margin stood at INR63/mmBtu in 1QFY19 v/s -INR33/mmBtu in 4QFY18.
Kochi throughput grew 5% QoQ (-18% YoY) to 6tbtu (in-line), implying 10% utilization of the 5mmt capacity. This includes 6tbtu long-term (flat QoQ) and 0.2tbtu pure short-term.

27/07/2018 10 EN

Underlying

Petronet Lng Limited

Petronet LNG develops, designs, constructs, owns and operates Liquefied Natural Gas (LNG) import and regasification terminals in India. Co. operates through the natural gas business segment. Co.'s terminals include Dahej LNG terminal, Kochi LNG terminal and Solid cargo port. Co. owns and operates a LNG regasification terminal with name plate capacity of 10 MMTPA at Dahej, in the State of Gujarat. Co. also has commissioned another LNG terminal with name plate capacity of 5 MMTPA at Kochi, in the State of Kerala. Solid Cargo Port Terminal has facilities to import/export bulk products, such as coal, steel and fertilizer.

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INE347G01014 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Swarnendu Bhushan

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MOSL: PETRONET LNG (Buy)-Higher Dahej utilization drives a superior EBTIDA performance

MOSL : PETRONET LNG: Volumes dip, but outlook remains intact

For PETRONET L N G, the environment deterioration entails a downgrade to Neutral

MOSL: PETRONET LNG (Buy)-Volumes in-line; Dahej to recover

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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