. PETRONET LNG: Volumes dip, but outlook remains intact (PLNG IN, Mkt Cap USD4.1b, CMP INR216, TP INR298, 38% Upside, Buy) PLNG reported an in line EBITDA of INR10.6b (flat YoY, but down 9% QoQ) despite lower-than-expected utilization due to pay-or-use charges of INR4.1b. Throughput at Dahej stood at 89%, with Kochi utilization ~19%. The management expects better utilization only once spot LNG prices cool off after the winter season ends in the northern hemisphere (v/s ~USD42/mmBtu in Jul'...
PETRONET L N G (IN), a company active in the Oil Equipment & Services industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 2 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date January 18, 2022, the closing price was INR 220.35 and its expected value was esti...
PETRONET LNG: Volumes in-line; Dahej to recover (PLNG IN, Mkt Cap USD4.4b, CMP INR216, TP INR310, 44% Upside, Buy) Petronet LNG (PLNG)'s numbers were in line with our estimates, with volumes at 209tbtu and utilization rates at Dahej/Kochi at 88%/24% in 1QFY22. Kochi was largely unaffected, while Dahej was impacted by the second COVID wave. The management expects the utilization rate at Kochi to be ramped up by ~30% by end-FY22. On the other hand, Dahej would continue to operate at over 9...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Petronet LNG: Capacity utilization remains strong (PLNG IN, Mkt Cap USD5.5b, CMP INR264, TP INR350, 33% Upside, Buy) Volumes at Dahej were down QoQ with the Dabhol terminal resuming from seasonal shutdown. However, Dahej continued witnessing higher utilization despite competition (from Dabhol and Mundra) led by strong contracts. The current low spot price environment bodes well for price sensitive consumers like gas-based power plants. Also, the NGT has passed orders for the Pollution C...
The Pause that Refreshes? We continue to believe the weight of the evidence points to a new leg higher for global equities, a viewpoint that is supported by the several international markets that are breaking out to new highs or making bullish inflections since our previous Int'l Compass (10/31/19). While developments continue to lean bullish, global equities have rallied substantially since the start of October, making it perfectly reasonable to expect some consolidation of recent gains which ...
PETRONET LNG: Stellar performance at Dahej continues (PLNG IN, Mkt Cap USD6b, CMP INR285, TP INR340, 19% Upside, Buy) PLNG’s sales were in line with our estimate at INR93.6b in 2QFY20, while EBITDA of INR11.6b (+31% YoY) exceeded our estimate of INR10.2b. Total expenditure was lower on account of limited maintenance and repairs cost in the monsoon quarter. PBT was in line with our estimate at INR8.9b (+2% YoY). The company re-measured DTL of INR4.5b in accordance with the new tax rate of ...
PETRONET LNG: Tellurian in PLNG’s portfolio – a non-bidding agreement (PLNG IN, Mkt Cap USD5.3b, CMP INR253, TP INR336, 33% Upside, Buy) Petronet LNG (PLNG) arranged a conference call to allay investor concerns about the recently signed MOU with Tellurian, US. PLNG signed a non-bidding agreement with Tellurian in the US on 21st Sep'19, which envisages an LNG purchase contract of up to 5mmt. The phase-I (16.6mmt) of the project is expected to be completed by 2023, and PLNG might invest ~US...
PETRONET LNG: Domestic demand to underpin capacity expansion (PLNG IN, Mkt Cap USD5.4b, CMP INR259, TP INR305, 18% Upside, Buy) The current low spot price environment should support the government’s plans to bring about major reforms in the domestic gas consumption space, including the revival of gas-based power plants. This coupled with weaker competition, would aid continued higher utilizations for the company. We reiterate Buy on PLNG. Revival of stranded gas-based power plant to ai...
PETRONET LNG: Lower spot LNG prices, summer demand boost volumes (PLNG IN, Mkt Cap USD5.1b, CMP INR239, TP INR305, 27% Upside, Buy) PLNG reported 1QFY20 results based on Ind-AS 116. Reported EBIDTA came in 17% higher than our estimate at INR10.2b (+10% YoY), led by lower other expenditure under the new accounting standards. Depreciation stood at INR1.9b (+86% YoY) and interest cost at INR1.0b (~3-4x). Reported PBT of INR8.4b was in line with our estimate. Adjusting for Ind-AS loss of INR516...
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 FY1...
Petronet LNG: Favorable spot prices may help, amid Dahej expansion (PLNG IN, Mkt Cap USD5.1b, CMP INR238, TP INR315, 33% Upside, Buy) Dahej is expanding from 15mmtpa to 17.5mmtpa capacity in few weeks. On the expanded capacity, utilization contracts are only for 15.75mmtpa. Spot LNG prices have declined to ~7% of Brent for future deliveries. Favorable low prices should enable PLNG to garner handsome marketing margins. Competition too remains weak. Reiterate Buy with target price of INR31...
Petronet LNG: Latent potential could be immense (PLNG IN, Mkt Cap USD4.6b, CMP INR217, TP INR311, 43% Upside, Buy) Increased focus of the Chinese government on gas availability, construction of distribution infrastructure and suitable policies aiding consumption helped Chinese gas consumption to grow at CAGR of 16% during 2001-10 and another 10% during 2011-18. After a long gap, large trunk pipelines are being constructed, which along with ninth and tenth round of City Gas Distribution (...
Q3FY19 result highlights PLNG reported earnings at Rs5.65bn (IDFCe Rs5.5bn) up 7% yoy, with EBITDA of Rs8.5bn (IDFCe Rs8.7bn) flat yoy. This is the second successive quarter of muted EBITDA growth, with Q2 seeing a 2% yoy decline. 9MFY19 EBITDA/PAT grew by 7/10% to Rs26.7bn/17.1bn Long term Dahej regas volumes at 113 tbtu -8% yoy, (IDFCe 119 tbtu). Spot volumes of 4 tbtu flat yoy, lower than IDFCe 7 tbtu. Overall volumes at Dahej of 197 tbtu (utilisation 103% in Q3), -8% yoy, (IDFCe 209 tb...
Petronet LNG: Dahej continues stellar utilization (plng IN, Mkt Cap USD4.8b, CMP INR228, TP INR320, 40% Upside, Buy) EBITDA was flat YoY (-4% QoQ) at INR8.5b, higher than our estimate of INR8.4b, led by continued high utilization at Dahej and better implied marketing margins on spot volumes. PAT grew 7% YoY (flat QoQ) to INR5.7b (our estimate: INR5.5b). Strong utilization at Dahej: Throughput at Dahej stood at 197Tbtu (-8% YoY, -7% QoQ), implying utilization of 104% for the quarter. Long...
Q2FY19 result highlights PLNG reported earnings at Rs5.6bn (IDFCe Rs5.7bn) down 4% yoy, with EBITDA of Rs8.8bn (IDFCe Rs9bn) declining 2% yoy This is the first quarter of negative growth in 12 quarters, driven by muted volumes. Long term regas volumes at 116 tbtu -8% yoy, (IDFCe 115 tbtu). Overall volumes of 211 tbtu, flat yoy, (IDFCe 215 tbtu). Kochi volumes of 6 tbtu (8% utilisation) for Q2. Gross margins of Rs6.2bn (-8% yoy), below estimates of Rs6.4bn driven by lower volumes and lower ...
Q2FY19 result highlights PLNG reported earnings at Rs5.6bn (IDFCe Rs5.7bn) down 4% yoy, with EBITDA of Rs8.8bn (IDFCe Rs9bn) declining 2% yoy This is the first quarter of negative growth in 12 quarters, driven by muted volumes. Long term regas volumes at 116 tbtu -8% yoy, (IDFCe 115 tbtu). Overall volumes of 211 tbtu, flat yoy, (IDFCe 215 tbtu). Kochi volumes of 6 tbtu (8% utilisation) for Q2. Gross margins of Rs6.2bn (-8% yoy), below estimates of Rs6.4bn driven by lower volumes and lower ...
We present key takeaways from our meet with Petronet LNG (PLNG). Management: Competition is not a worry, so far: Despite looming threat from competition, with LNG terminals on the west coast (Swan, Adani-GSPC), PLNG remains sanguine about its volumes/utilization, at least to the extent of 15.75mt of current contracts at Dahej and 1.5mt at Kochi. Management has acknowledged limited clarity on offtake of incremental capacity at Dahej (expansion to 17.5mtpa) nameplate capacity by 2QFY20E), but wit...
Q1FY19 result highlights PLNG reported earnings at Rs5.9bn (IDFCe Rs5.2bn) up 34% yoy, with EBITDA of Rs9.3bn (IDFCe Rs8.1bn) reporting an increase of 26% yoy. PLNG has now reported a double digit EPS improvement for 11 consecutive quarters, with average growth over the period at 62%. Long term regas volumes at 117 tbtu +11% yoy, (IDFCe 125 tbtu). Overall volumes of 220 tbtu, +15% yoy, (IDFCe 217 tbtu). Kochi volumes of 6.2 tbtu (8% utilisation) for Q1. Gross margins of Rs6.5bn (+21% yoy),...
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