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Petronet LNG Q2 Review - Turnaround In Throughput; Full-Year Outlook Intact: Motilal Oswal

Petronet LNG Q2 Review - Turnaround In Throughput; Full-Year Outlook Intact: Motilal Oswal

<div class="paragraphs"><p>Petronet LNG Kochi terminal. (Source: Company website)</p></div>
Petronet LNG Kochi terminal. (Source: Company website)

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Motilal Oswal Report

Petronet LNG Ltd. reported a beat on our estimates, led by higher-than estimated throughput (Dahej back at more than100% at 102%, after being subdued for the last three quarters, with Kochi utilisation robust at ~24%).

The company expects spot liquefied natural gas prices to cool off post the winter season.

Currently, huge demand is seen from China and Japan, with supply constraints resulting in a spike in spot liquefied natural gas prices.

Despite the immediate challenges, the management remains confident about achieving more than 900 trillion British thermal units in volumes for FY22 (~96% utilisation, i.e., flat YoY – supported by tied up contracts).

Our numbers are in line with the aforementioned guidance, with the full-year volume assumption at 910 tbtu.

Petronet LNG is also looking at extending its long term contract with RasGas beyond 2028.

Click on the attachment to read the full report:

Motilal Oswal Petronet LNG Q2FY22 Result Update.pdf

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