BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Petronet LNG Ltd. reported in-line Ebitda of Rs 9.4 billion during the quarter. Dahej utilisation improved to 77%, while utilisation at Kochi stood at 21%.
Spot LNG price has dropped to ~$11/metric million British thermal unit thereby driving up utilisation levels at Dahej terminal to ~97% in April 2023.
Management expects utilisation levels to remain healthy going forward if LNG price sustains at current level.
Management also highlighted that utilisation at Kochi terminal may reach 35% in FY25E from 21% currently, if GAIL India Ltd.'s Kochi-Bangalore pipeline is completed by November 2024.
Despite near-term improvement in volumes, long-term volume growth prospects remain bleak for the company, due to intensifying competition from upcoming LNG terminals as well as increasing domestic gas supply.
As highlighted in our previous report, sustainability of high return ratios also remains a key concern for Petronet LNG as the return on capital employed for upcoming projects (Dahej expansion, Gopalpur floating storage regasification unit and propane dehydrogenation unit-polypropylene plant) is likely to be lower comparatively at 7-18%.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.