Petronet LNG Q2 net profit seen down 8% Rs 207 cr

Petronet LNG, the state-run importer of liquefied natural gas, will declare its second quarter (July-September) results on October 18. According to a CNBC-TV18 poll, analysts on an average expect net profit to fall 8 percent sequentially to Rs 207 crore in the quarter gone by, impacted by increased depreciation and interest cost.

Net sales are seen going up by 11 percent to Rs 9,327 crore during September quarter from Rs 8,377 crore in June quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) may increase 18 percent Q-o-Q to Rs 391 crore and operating profit margin is likely to expand 20 basis points to 4.2 percent in second quarter.

Watch out for

Its Kochi terminal commissioned during the quarter would lead to increase in cost for the company. Moreover, volumes are likely to be negligible from this terminal as it commissioned in August.
 
LNG demand remains low in the quarter gone by. Analysts expect it around 5 percent to 6 percent lower at 123-124 trillion British thermal units (tbtu).

LNG Prices remained higher during September quarter due to weak rupee.

Long term volumes are expected to pick up to around 95 tbtu against 92 tbtu Q-o-Q while spot volumes are expected near 14 to 15 tbtu in second quarter as against 19 tbtu in first quarter of FY14.

Re-gas volumes are likely to be around 14.5 tbtu versus 18.3 tbtu Q-o-Q.