Company Update : Petronet LNG by Motilal Oswal Financial Services Ltd
Beat on volumes; performance largely in line
* PLNG’s 1QFY26 revenue was in line with our estimate at INR119b. ? EBITDA fell 26% YoY to INR11.6b (5% below our estimate).
* The company booked additional provisions of INR1.4b against UoP dues during the quarter. No UoP trade receivables were waived off during 1Q.
* Reported PAT was in line with our estimate at INR8.5b, down 25% YoY, supported by higher-than-expected other income. EBITDA/PAT adj. for UoP provisioning (INR1.4b) stood 6%/20% above our estimates.
* Spot LNG prices fell QoQ in 1Q, averaging USD12.4/mmbtu (USD14 in 4Q).
* Operational performance:
* Total volumes came in 6% above our estimates, primarily due to higher long-term and service volumes. No spot volumes were recorded during the quarter, mainly due to subdued power demand.
* Dahej utilization was 8% above estimates, while Kochi utilization stood 18% below est.
* As of Jun'25, provisions on UoP dues stood at INR6.1b.
* UoP dues of INR14.2b (net provision INR8.1b) were included in trade receivables as of Jun'25. PLNG has obtained bank guarantees from customers to recover UoP charges. While some customers have not given balance confirmations toward these dues, management is confident of recovering such charges. The board has approved an additional investment for setting up a 5mmtpa land-based LNG terminal at Gopalpur, Odisha, replacing the earlier approved 4mmtpa FSRU-based terminal. The revised project entails an overall investment of INR64b, including taxes and duties, with an incremental cost of INR40b over the previous plan, which will be financed through debt and equity. It is expected to be commissioned in the next three years.
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