Earnings Outlook
Petronet LNG PAT seen up on more volume, tariff hike
This story was originally published at 21:33 IST on 22 July 2024
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By Sayantan Sarkar
NEW DELHI – Petronet LNG is expected to see a rise in its net profit for Apr-Jun on the back of higher import volume and a 5% increase in regasification tariff, analysts said.
The liquefied natural gas importer is expected to report a net profit of 8.77 bln rupees, up 11% from a year ago, according to the average of estimates by 10 brokerage houses. Sequentially, net profit is likely to rise nearly 19%. Among the estimates, the highest and lowest projections for the company's bottomline are 10.30 bln rupees and 7.77 bln rupees, respectively.
The company's topline is expected to rise 22% on year to 141.75 bln rupees for the quarter ended June, while sequentially, it is expected to increase by nearly 3%. Among the estimates, the highest and lowest forecasts for revenue are 149.9 bln rupees and 133.41 bln rupees, respectively.
Petronet LNG is expected to report higher volumes sequentially and on a year-on-year basis with better utilisation of its Dahej terminal, despite the rise in spot prices, Yes Securities said in a report. Dahej terminal is the largest single location for liquefied natural gas storage and regasification terminal in the country.
Petronet LNG is set to announce its earnings on Wednesday. Today, shares of the company closed 0.5% lower at 341.35 rupees on the National Stock Exchange.
The company is primarily in the midstream business of importing super-cooled gas, regassifying it, and supplying it to users in the country. It is a joint venture with state-owned majors GAIL (India) Ltd, Oil and Natural Gas Corp Ltd, Indian Oil Corp Ltd, and Bharat Petroleum Corp Ltd as promoters, each holding a 12.5% stake in the company.
Most brokerage houses expect over 100% utilisation at its facility in Dahej, which has a capacity of 17.5 mln tn per annum. This utilisation is more than the levels of Jan-Mar. Motilal Oswal Financial Services Ltd said liquefied natural gas imports by the company in Apr-Jun are seen strong, given the robust power demand and moderate price overall. It also said progress in ongoing projects is a key monitorable for the company.
The company's earnings before interest, tax, depreciation and amortisation or EBITDA is likely to be 13.13 bln rupees for the June quarter, according to the average of estimates of nine brokerages.
Following are the Apr-Jun earnings estimates for Petronet LNG based on 10 brokerage reports compiled by Informist:
| Brokerage Name | Net Sales (mln rupees) | Net Profit (mln rupees) | EBITDA (mln rupees) |
|---|---|---|---|
| Anand Rathi Share and Stock Brokers Ltd | 133,411 | 9,952 | - |
| Elara Securities (India) Pvt Ltd | 145,321 | 8,494 | 12,446 |
| Emkay Global Financial Services Ltd | 141,585 | 7,938 | 14,477 |
| Kotak Institutional Equities | 135,065 | 8,669 | 13,780 |
| Motilal Oswal Financial Services Ltd | 148,925 | 10,298 | 15,320 |
| Nirmal Bang Equities Pvt Ltd | 141,709 | 8,746 | 12,558 |
| Nomura Equity Research | 149,900 | 8,200 | 12,200 |
| Nuvama Wealth Management Ltd | 143,579 | 9,024 | 13,381 |
| Prabhudas Lilladher Pvt Ltd | 134,300 | 8,600 | 12,500 |
| YES Securities (India) Ltd | 143,685 | 7,768 | 11,506 |
| Average | 141,748 | 8,769 | 13,130 |
End
Edited by Deepshikha Bhardwaj
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