Higher transmission tariffs drive GSPL’s strong performance
GSPL’s net profit of Rs1.3bn was higher than our estimate of RS1.1bn on account of higher transmission tariff during the quarter. Transmission tariff increased by 18.9% yoy to Rs0.99/scm (qoq +10%), which was significantly higher than our estimate of Rs0.86/scm. Higher transmission tariff was on account of take-or-pay contract, whereby consumers continued to pay tariff despite transmitting lower gas volumes, and transmission of gas over longer distance. However, we note that GSPL is yet to incorporate the lower transmission tariff announced by PNGRB. GSPL’s volumes continued to fall during the quarter with gas transmission volumes for the quarter declining by 18.8% yoy to 2631mmscm (qoq -7.1%). The fall in gas transmission volume was on account of falling gas production KG D6. GSPL’s operating profit for the quarter stood at Rs2.5bn (yoy -2.5% qoq 2.2%) which was higher than our estimate of Rs2.3bn.
Actual v/s Estimates
Y/E, Mar (Rs. m)
|
Q2FY13
|
Q1FY13
|
qoq (%)
|
Q2FY12
|
yoy (%)
|
LKP Estimates
|
Deviation (%/bps)
|
Revenue
|
2,732
|
2,676
|
2.1%
|
2,808
|
-2.7%
|
2,500
|
9.3%
|
EBITDA
|
2,520
|
2,465
|
2.2%
|
2,584
|
-2.5%
|
2,272
|
10.9%
|
EBITDA (%)
|
92.2%
|
92.1%
|
12 bps
|
92.0%
|
23 bps
|
90.9%
|
136 bps
|
PAT
|
1,328
|
1,248
|
6.4%
|
1,293
|
2.7%
|
1,114
|
19.3%
|
LKP Research
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