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B e a t s e x p e c t a t i o n s …
Petronet LNG reported strong Q3FY12 numbers with revenues increasing
74.5% YoY to | 6330.3 crore while PAT increased 72.9% to | 295.4 crore
in Q3FY12. The results were higher than our estimates mainly on account
of higher capacity utilisation and marketing margins. Regasification
services volumes were 21.8 tbtu vs. 8.6 tbtu YoY, which also contributed
towards the topline growth. LNG volumes increased 21% YoY to 144.9
tbtu in Q3FY12. The interest expense of | 34.5 crore was lower than our
estimates, mainly on account of prepayment of debt of | 500 crore.
Blended net regasification margins increased from | 32.5 per mmbtu in
Q3FY11 to | 43.4 per mmbtu in Q3FY12. Gross regasification margins
increased 5% YoY to | 33.4 per mmbtu in Q3FY12. We estimate LNG
volume of 553.6 tbtu and 580.3 tbtu in FY12E and FY13E, respectively. We
recommend a HOLD rating with a price target of | 175.
ƒ Highlights of the quarter
Petronet LNG reported a 21% increase in LNG volume from 119.7
tbtu in Q3FY11 to 144.9 tbtu in Q3FY12 on account of higher long
term and regasification services volumes during the quarter. The
volume for regasification services stood at 21.8 tbtu in Q3FY12 (17.2
tbtu in Q2FY12). The 5 MMTPA Kochi terminal has achieved 95%
completion and is expected to start commercial operations in
Q3FY13E. The new jetty at the Dahej terminal would be ready for
commissioning in FY14E. The Petronet Board has approved the
feasibility report for the expansion of the Dahej terminal to 15
MMTPA. It has also granted consent to start internal feasibility for
setting up a new 5 MMTPA LNG terminal in the east coast of India at
Gangavaram in Andhra Pradesh.
V a l u a t i o n
Petronet LNG’s business of receiving and regasification of LNG along with
back-to-back long-term purchase and sales agreement offers a lot of
safety to investors. We have valued the stock based on DCF methodology
(WACC – 10.6%, terminal growth -2%) to arrive at a target price of | 175.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
B e a t s e x p e c t a t i o n s …
Petronet LNG reported strong Q3FY12 numbers with revenues increasing
74.5% YoY to | 6330.3 crore while PAT increased 72.9% to | 295.4 crore
in Q3FY12. The results were higher than our estimates mainly on account
of higher capacity utilisation and marketing margins. Regasification
services volumes were 21.8 tbtu vs. 8.6 tbtu YoY, which also contributed
towards the topline growth. LNG volumes increased 21% YoY to 144.9
tbtu in Q3FY12. The interest expense of | 34.5 crore was lower than our
estimates, mainly on account of prepayment of debt of | 500 crore.
Blended net regasification margins increased from | 32.5 per mmbtu in
Q3FY11 to | 43.4 per mmbtu in Q3FY12. Gross regasification margins
increased 5% YoY to | 33.4 per mmbtu in Q3FY12. We estimate LNG
volume of 553.6 tbtu and 580.3 tbtu in FY12E and FY13E, respectively. We
recommend a HOLD rating with a price target of | 175.
ƒ Highlights of the quarter
Petronet LNG reported a 21% increase in LNG volume from 119.7
tbtu in Q3FY11 to 144.9 tbtu in Q3FY12 on account of higher long
term and regasification services volumes during the quarter. The
volume for regasification services stood at 21.8 tbtu in Q3FY12 (17.2
tbtu in Q2FY12). The 5 MMTPA Kochi terminal has achieved 95%
completion and is expected to start commercial operations in
Q3FY13E. The new jetty at the Dahej terminal would be ready for
commissioning in FY14E. The Petronet Board has approved the
feasibility report for the expansion of the Dahej terminal to 15
MMTPA. It has also granted consent to start internal feasibility for
setting up a new 5 MMTPA LNG terminal in the east coast of India at
Gangavaram in Andhra Pradesh.
V a l u a t i o n
Petronet LNG’s business of receiving and regasification of LNG along with
back-to-back long-term purchase and sales agreement offers a lot of
safety to investors. We have valued the stock based on DCF methodology
(WACC – 10.6%, terminal growth -2%) to arrive at a target price of | 175.
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