Moneycontrol Bureau
Investors lapped up shares of Gujarat State Petronet for second consecutive session on Monday. The stock rose 4.5 percent to Rs 60 apiece in addition to 5 percent upmove in previous session after PNGRB hiked network tariff.
Regulator Petroleum & Natural Gas Regulatory Board (PNGRB) raised the natural gas pipeline tariff for Gujarat State Petronet's 2,239 kms high pressure gas grid network by 11 percent to Rs 26.58 per mmbtu, effective from July 2012.
"The recomputed levelised tariff for the economic life of the GSPL's pipeline (i.e. July 27, 2012 to March 11, 2026) mentioned by PNGRB in order dated February 19 is Rs 26.58 per mmbtu (on gross calorific value basis) instead of Rs 23.99 per mmbtu as computed in the original tariff order," the company said in its filing.
This tariff determination is provisional. GSPL is required to submit the zonal apportionment within next 10 days.
As per the order of Honarable Appellate Tribunal for Electricity (APTEL) dated January 6, 2014, the natural gas regulator has fixed the applicability of tariff order from the date of authorisation of GSPL's pipeline (July 27, 2012) and not from the date of notification of tariff regulations (i.e. Novermber 20, 2008).
However, PNGRB proposes to file an appeal before the Honarable Supreme Court against the APTEL order.
Meanwhile, brokerage house Nomura sees annual transmission revenue increasing Rs 82 crore (post-tax impact of Rs 0.95/share of FY15F EPS) and retrospective gains of Rs 1,400 crore for the period July 2012-March 2014 (post tax impact of Rs 1.6/share of FY15F EPS).
"The tariff increase is a further positive for Gujarat State Petronet (GSPL). We highlight that GSPL was already a net gainer of the tariff-setting exercise. The average tariff for GSPL had increased by 11-12 percent, and it had booked a gain of Rs 100 crore for the nine-month period from July 2012 to March 2013," Nomura report said.
Posted by Sunil Shankar Matkar
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