GAIL India Q4 Review - Upside Appears Likely To FY22E Gas Marketing Ebitda: ICICI Securities
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ICICI Securities Report
Upside likely to our FY22E gas marketing Ebitda of Rs 27.6 billion.
80% of FY22E long-term contracted liquefied natural gas is tied up. 20% is not tied up deliberately to gain from high spot LNG prices.
Some volumes to be sold in FY22E were tied up earlier at lower oil prices, which will drag down gas marketing Ebitda.
However, 20% of LNG volumes, not yet tied up, are likely to boost Ebitda as they would be sold at spot LNG price; July 2021-March 2022 spot LNG futures were at $10.9-12.8/metric million British thermal unit as of June 09, 2021 and profit on selling Henry Hub linked U.S. LNG at spot prices is estimated at $3.45.0/mmbtu in July 2021-March 2022.
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