Petronet LNG - March 2013 Results Preview - Motilal Oswal

- We expect Petronet to report 4QFY13E PAT of INR2.9b (up 18% YoY and down 9% QoQ). We estimate EBITDA at INR4.9b (up 33% YoY and down 8% QoQ).

- We have built LNG volumes at 2.76mmt in 4QFY13E, marginally lower QoQ. We model 11.1mmtpa volume in FY14E at Dahej, of which 7.5mmtpa would be on long term contract and 3.6mmtpa on short term. We now model 0.2mmt volumes from Kochi in FY14E.

- We estimate 5% hike in re-gasification tariff till FY15E and flat thereafter at Dahej.

- The stock trades at 8.7x FY15E consolidated EPS of INR15.3. Lower spot LNG prices, commissioning of Kochi terminal and sale of ADB's stake are key near term positives for the stock. Buy.

Source : Equity Bulls

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