Petronet LNG - 3QFY2013 Result Review - Angel Broking

Petronet LNG (CMP: Rs.162 / TP: Rs.179 / Upside: 11%)

Petronet LNG reported 3QFY2013 numbers. During 3QFY2013, PLNG's R-LNG volumes fell by 3.4% yoy to 140TBTUs. The contractual volumes stood at 97TBTUs, while spot cargo and tolling volumes stood at 43TBTUs. Although volumes declined, average realization increased by 39.3% yoy to Rs.602/mmbtu and therefore, net sales increased by 33.1% yoy to Rs.8,423cr.

The EBITDA/mmbtu decreased by 3.3% yoy to Rs.37.8 and the EBITDA margin declined by 167bp yoy to 6.3% in 3QFY2013. The cost of LNG regasified increased by 37.0% yoy to Rs.7,809cr. Hence, despite a higher growth in net sales, the EBITDA increased by only 5.1% yoy to Rs.529cr. Other income decreased by 9.1% yoy to Rs.15cr, while the tax rate fell to 31.9% in 3QFY2013, compared to 32.7% in 3QFY2012. Hence, the net profit grew by 7.8% yoy to Rs.319cr.

We maintain our Accumulate rating on the stock with a target price of Rs.179.

Source : Equity Bulls

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