Petronet LNG Q4 Review - Capital Allocation Concerns Back In Focus: Prabhudas Lilladher
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Prabhudas Lilladher Report
We lower our FY22/23E estimates of Petronet LNG Ltd. by 16%/4%to factor volume dip from high spot liquefied natural gas prices and lockdown restrictions.
The company is a play on India’s rising LNG imports supported by soft spot LNG prices.
We like the company’s business model given high earnings visibility and see limited competition to its well-entrenched reach in the LNG business.
However, the recent change in their business strategy to set up 1,000 LNG stations along with investment in a compressed biogas plant is a dampener, as returns are likely to be back-ended.
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