Company Update : Petronet LNG Ltd By Motilal Oswal Financial Services Ltd
PAT in line; Dahej utilization drops
* Petronet LNG’s 3QFY25 revenue came in below our estimates, as total volumes stood below our estimates, primarily due to lower third-party cargos. While EBITDA was also marginally below estimates, higherthan-expected other income led to PAT coming in-line with our estimates. We note that Spot LNG prices were high, averaging USD13.9/mmbtu in 3Q (up 7% QoQ), and continue to remain elevated in 4QFY25’td, averaging USD14.2/mmbtu.
* In 3QFY25, revenue came in below our estimate, as total volumes were below estimate.
* We note that Spot LNG prices were high in 3Q, averaging USD13.9/mmbtu (up 7% QoQ).
* EBITDA was 5% below our estimates at INR12.5b (-27% YoY), with employee expenses coming in above our estimate.
* Reported PAT stood in line with our est. at INR8.7b (-27% YoY), with other income coming in above our estimate.
* Operational performance:
* Volumes came in below our estimates, primarily due to lower third-party cargos.
* Dahej utilization was below estimates, while Kochi utilization stood in line.
* In 3Q, PLNG provisioned INR1b for UoP dues. Additionally, PLNG has waived off UoP charges of INR489m (INR1.8b in 9mFY25).
* In 9MFY25, net sales/EBITDA/PAT were similar YoY at INR387b/INR40b/INR29b.
* As of Dec'24, provisions on UoP dues stood at INR7b.
* UoP dues of INR16.7b (net provision INR9.6b) were included in trade receivables as of Dec'24. The company has obtained bank guarantees from customers to recover UoP charges for FY22 and FY23. The customers have not given balance confirmations toward these dues. However, the management is confident of recovering such charges.
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