Buy Petronet LNG; target of Rs 300: Prabhudas Lilladher

Prabhudas Lilladher's research report on Petronet LNG

Petronet LNG (PLNG) reported Q1FY19 EBITDA and PAT of Rs9.3bn (+26% YoY, +14% QoQ) and Rs5.9bn (+34% YoY, +12% QoQ), respectively, in-line with our estimates. PLNG's total volumes at 220tbtu (+4%QoQ) were due to higher demand from downstream sector along with increased demand post closure of Dabhol terminal for monsoon. Long-term Rasgas contracted volumes were strong at 112tbtu (flat QoQ), and included ~11tbtu from Gorgon while the service/tolling volumes at Dahej; service volume were at 97tbtu spot volumes were at 5tbtu (7tbtu in Q4). Kochi regas volumes were at 6tbtu.

Outlook

Also, reports of delay in commissioning of the new 5MTPA tolling LNG capacity at Mundra, will support PLNG's earnings. Reiterate BUY with a DCF based PT of Rs300 (unchanged).