Accumulate Petronet LNG - Kotak

Result analysis and key takeaways from the conference call of Petronet LNG.

Petronet LNG Ltd. has reported Q4FY12 results which are broadly in line with our estimates. The Company has reported a PAT of Rs.2451 Mn in Q4FY12 higher by 18.8% YoY but lower by 17% QoQ. Our PAT estimate was Rs.2542 Mn. (3.7% variation)

On a sequential basis, PAT was lower mainly on account of 1). Lower volume growth (lower by 6.9% QoQ but up by 7.3% YoY and 2). Lower average net back.

In Q4FY12, volumes were lower due to temporary shutdown of 4-5 fertilizer plants (normal maintenance) resulting in lower demand. On a sequential basis, the volumes were down due to extraordinary performance in Q3FY12 (base effect).

Management has guided that there is a strong demand of LNG from refineries, petrochemicals and CGDs customers reflecting spot LNG to replace liquid fuels. Hence, going forward volumes are expected to improve. On the other hand, domestic natural gas supply was lower on account of falling gas production from RIL's KG-D6.

In FY12, the company has operated at 107% of its capacity (nameplate capacity of the Dahej terminal being 10 MMTPA) and processed a total volume of 548 TBtus against a total regasification volume of 440 TBtus in FY11.

Petronet imported 171 shiploads of LNG from long-term import contract with RasGas of Qatar and another 34 cargoes were imported from spot market. Further, Dahej terminal also received another 21 cargoes, imported by GAIL India and Gujarat State Petroleum Corp.

Source : Equity Bulls

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