Oil And Gas Sector Check: Spot LNG Set To Fall From Record Peak, Says ICICI Securities
A pedestrian walks past a pipeline in front of a salt pan in the Mahul area of Mumbai.(Photographer Dhiraj Singh/Bloomberg)

Oil And Gas Sector Check: Spot LNG Set To Fall From Record Peak, Says 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

Japan Korea Marker spot liquefied natural gas price surged approximately 18 times from lows in May 2020 to $32.5/ million British Thermal Unit as extreme cold weather boosted demand in Northeast Asia and outages and shortage of LNG carriers curbed supply.

The surge in spot LNG and oil prices may mean increase in GAIL Ltd.’s Q4 FY21E gas marketing Ebitda and upside to its FY21E earning per share of 4-37%.

The recent rise in Brent and futures may mean upside to GAIL’s FY22E gas marketing Ebitda of 142% and EPS of 15%.

Spot LNG surge may hit Gujarat Gas Ltd.’s Q4 FY21E margin unless it hikes prices to pass on cost to industrial consumers.

Click on the attachment to read the full report:

ICICI Securities Gas Sector Update.pdf

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