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SMR
08-10-2015, 05:53 AM
Petronet LNG Limited is an India-based company engaged in developing, designing, constructing, owning and operating liquefied natural gas (LNG) import and regasification terminals in India. The Company is involved in the business of import and regasification of LNG and supplies to Bharat Petroleum Corporation Limited (BPCL), GAIL (India) Limited (GAIL), Indian Oil Corporation Limited (IOCL) and others. It owns and operates LNG Regasification Terminal with the name plate capacity of 10 million metric ton per annum (MMTPA) at Dahej, in the state of Gujarat. The Company has also commissioned an LNG terminal with a name plate capacity of 5 MMTPA at Kochi, in the State of Kerala. The Company operates through the Import and Re-gasification of Liquefied Natural Gas segment.

Official Website: www.petronetlng.com

SMR
08-10-2015, 05:55 AM
Petronet LNG (PLNG)’s top-line for 1QFY2016 declined by 17.6% yoy to Rs8,377cr, on account of lower LNG prices. Despite the decline in revenues, the gross margin for the quarter remained flat at Rs469cr, as against Rs461cr in 1QFY2015, led by 1) Rs50cr revenue at the Kochi terminal from reload services, and 2) higher utilization at the Dahej terminal. EBITDA for the quarter outperformed expectations, coming in at Rs361cr, ie ahead of the street estimate of Rs349cr. The net profit jumped 58% yoy to Rs248cr on account of tax reversals pertaining to prior years under Section 80-IA of the Income Tax Act. The Dahej terminal operated at ~98% capacity or 125.41 TBTU during the quarter as against ~74% in the sequential previous quarter. Utilisation levels at Kochi terminal remained low at 6-7% and would continue to remain low as the Kochi-Bangalore pipeline by GAIL would take another two years to complete. The Kochi terminal reported a cash profit for the first time on account of Rs50cr of reload revenues. Expansion plan remains on track: Expansion of the Dahej terminal from 10MMTPA to 15MMTPA is going on as per schedule. ~65% of the expansion work has been completed and Management expects to complete the expansion by 2016-end. Outlook and valuation: PLNG is a direct play on the opportunity arising out of gas deficit in India. The company’s strong expansion plan makes it well positioned to benefit from the demand supply gap. The stock currently trades at 21x and 17x its FY2016E and FY2017E EPS. On the basis of discounted cash flows (DCF), we arrive at our target price of Rs210 and assign an Accumulate rating on the stock.

Source: http://www.angelbroking.com/