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