Petronet LNG - FY13 annual report highlights; EW - Barclays

Despite the 18% y/y rise in unit costs in FY13, Petronet's earnings rose 9% y/y helped by cRs7bn in trading gains. Cash flow was also strong despite Rs10.2bn in capex helped by the Rs4.1bn reduction in working capital pulling net debt down Rs5.3bn y/y to just 0.4x of D/E.

The stock's 39ppt underperformance since end-2011 has rendered valuations attractive, but we see share price headwinds remaining pending clarity on the outlook for the long troubled Rs45bn 5mtpa Kochi terminal. We stay Equal Weight (EW).

Source : Equity Bulls

Keywords