GAIL India - Gas Marketing Outlook Robust Despite Henry Hub Surge: ICICI Securities
A GAIL India Ltd. logo sits on display during a news conference in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)

GAIL India - Gas Marketing Outlook Robust Despite Henry Hub Surge: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Henry Hub gas prices are up 11% and FY22E based on futures are up 8% since June 14, 2021 implying HH-linked U.S. liquefied natural gas cost rise for GAIL India Ltd.

Oil and spot LNG prices are also up boosting the company’s U.S. LNG realisation.

The company’s FY22E gas marketing Ebitda, assuming entire volume is sold at oil-linked prices, is down 5% to Rs 37.7 billion versus our estimate based on futures as of June 14, 2021 but that assuming 20-28% of U.S. LNG sold at spot prices at Rs 50.4-55.7 billion is up 4-7% and that in most likely scenario is up 2% at Rs 36.4 billion.

Click on the attachment to read the full report:

ICICI Securities GAIL India Company Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.