February 23, 2017 / 17:59 IST
PLNG’s EPS will almost double every two years till FY20. Large part of the EPS growth has negligible risk as it is backed by (a) firm volume off-take contracts backed by take-or-pay clause and (b) mandatory 5% hike in re-gas tariffs.
Outlook
PLNG stated that Gorgon LNG volumes of 1.44 mntpa (currently being received at Dahej terminal) is over-and-above the already fully leased-out volume of 15.75 mntpa. This indicates that utilization of Dahej terminal will be 100%+ even on expanded capacity of 15 mntpa. Higher/de-risked volumes and mandatory 5% hike in re-gas tariffs will drive earnings growth. Maintain BUY with TP of Rs 455.
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