Company Update : Petronet LNG Ltd by Motilal Oswal Financial Services Ltd
Stable 3Q performance
* PLNG’s 3QFY26 revenue came in below our estimate by 11% at INR112b.
* EBITDA (adjusted for labor code impact of INR254m) came in 7% above estimate at INR12.2b (flat YoY).
* The company booked additional provisions of INR0.8b against UoP dues during the quarter. UoP trade receivables of INR0.8b were waived off during 3Q. EBITDA, adjusted for UoP provisioning and waiver, stood 21% above our estimate.
* Adj. PAT was 10% above our estimate at INR8.7b (flat YoY).
* PAT, adjusted for UoP provisioning, waiver and labor code impact, stood 25% above our estimate.
* Operational performance:
* Total volumes came in 3% above our estimate at 233tbtu.
* Dahej utilization was also 3% above our estimate, while Kochi utilization stood in line with our estimate.
* As of Dec'25, provisions on UoP dues stood at INR8.2b.
* UoP dues of INR13.1b (net of provision: INR5b) were included in trade receivables as of Dec'25. PLNG has obtained bank guarantees from some customers to recover UoP charges. While some customers have not given balance confirmations toward these dues, management is confident of recovering such charges.
* Spot LNG prices fell QoQ in 3Q, averaging USD10.9/mmbtu (USD11.8/mmbtu in 2Q).
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