Motilal Oswal - Petronet Lng Limited (PETRONET) MOSL: Petronet LNG (Buy)-LNG spot prices hit hard, EBITDA miss on inventory markdown

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Motilal Oswal

Swarnendu Bhushan

EUR 120.00 For Business Accounts Only

MOSL: Petronet LNG (Buy)-LNG spot prices hit hard, EBITDA miss on inventory markdown

Petronet LNG: LNG spot prices hit hard, EBITDA miss on inventory markdown

(PLNG IN, Mkt Cap USD4.8b, CMP INR225, TP INR300, 34% Upside, Buy)

4QFY19 PAT missed est. by 21% at INR4.4b (-16% YoY, -22% QoQ), while EBIDTA too missed est. by ~27% at INR6.3b (-24% YoY, -26% QoQ), led by inventory markdown of INR1,190m.
Spot LNG price for PLNG declined to USD4.3/mmbtu from USD8.3/mmbtu leading to inventory loss.
4QFY19 volumes were ~2% lower than est. at 205.1tbtu (-4% YoY, +1% QoQ), while FY19 volumes were at ~844tbtu (v/s 847tbtu in FY18). Volume loss was a seasonal effect due to shutdown of (a) refineries at Panipat and Koyali, (b) fertilizer plants.
For the quarter, utilization at Dahej stood at 104% (108% in FY19; flat YoY in FY18); while utilization at Kochi increased to 11% (10% in FY19; 12% in FY18).
Re-gas tariff charges for the quarter were ~USD0.7/mmbtu at Dahej and ~USD1.4/mmbtu at Kochi.
Company plans to set up two more tanks (in addition to six currently) at Dahej, increasing throughput to ~19.5mtpa over the next 2-3 years.

17/05/2019 1 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)-LNG spot prices hit hard, EBITDA miss on inventory markdown

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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