Petronet LNG Q3 Results Review - Dahej Utilisation Hit By Higher Spot LNG Price: Systematix

Systematix Research Report

Petronet LNG Ltd. reported Ebitda/profit after tax were 46%/63% ahead of our estimates largely driven by higher than forecasted use or pay charges booked during the quarter and one-off gain.

Petronet LNG booked Rs 8.5 billion against use-or-pay for CY22 against our expectation of Rs 2.4 billion. Further, the company recognized Rs 793 million on account of favorable outcome of an arbitration process.

Adjusting to these, Ebitda/profit after tax was 7% below our estimates. Volume came down sharply to 167 trillion British thermal unit versus 192 tbtu in Q2 FY23 constituting of just 154 tbtu at Dahej (69% utilisation) and 13 tbtu at Kochi (20% utilisation).

Tolling volume dropped to just 47 tbtu in Q3 FY23 versus 77 tbtu in Q2 due to higher spot LNG prices which led to volume de-growth.

On a positive note, current utilisation level at Dahej has reached back to 81% and the management expects it to remain strong in Q4 FY23. Dahej expansion plan is on track and should be completed by FY25.

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