Petronet LNG:
Concall Summary dated 12th Nov 2020
Revenue:₹6,235.8 cr (▼33.4%) Net Profit: ₹919.5 cr (▼15.6%)
FINANCIAL PERFORMANCE
• Revenue from operations decreased by 33.39% YoY and increased by 27.69% QoQ to ₹6,235.78 crore in Q2 FY21.
• Profit before tax stood at ₹1,234.74 crore in the quarter v/s ₹870.64 crore in Q2 FY20.
• Net profit degrew by 15.57% YoY and grew by 83.97% QoQ to ₹919.47 crore in Q2 FY21. There was substantial reduction in tax liability in terms of deferred taxation in the last year due to decline in tax rate to 22%.
• The Board of Directors approved a special interim dividend of ₹8 per share (80% on face value).
BUSINESS PERFORMANCE
• The results were better QoQ on account of resurgence of demand to pre-Covid level, robust operational efficiency and effective commercial planning.
• The overall utilization level was 109% in the quarter as compared to 81% in Q1 FY21 and 108% in Q2 FY20. The utilization of Kochi terminal was 17% v/s 14% in the last quarter and 16% last year.
• During the quarter, the company processed 243 TBTU (trillion British thermal units) of liquified natural gas (LNG) at the Dahej terminal as against 181 TBTU during Q1 and 240 TBTU in Q2 FY20.
• The revenue from regasification service was ₹678 crore as compared to ₹500 crore in Q1 and ₹631 crore in Q2 FY20.
• The margins (below gross margin) were higher due to surge of ₹86 crore QoQ and ₹154 crore YoY on account of impact of Ind AS 116. The impact of revaluation of inventory was ~₹70 crore.
CAPEX AND UPDATE
• The capex in H1 FY21 stood at ₹15 crore.
• The company is building additional tanks at Dahej at the cost of ~₹1,200 crore which is expected to complete within this year and a jetty at the cost of ~₹1,300 crore in 2-3 years.
• A committee has been formed for the concern on lower tariff for Kochi terminal. They are likely to arrive at a conclusion within Q3. The tariff for FY20 was 79% and in the current year, it has increased by 5%.
FUTURE OUTLOOK
• The overall capex estimate for H2 is ₹105 crore. The capex on Sri Lanka floating storage and regasification unit (FSRU) project is not expected to incur in the current financial year.
• The operating expense in H2 is likely to be higher due to carry forward of some maintenance expense from H1.
• The company expects to increase the volume and capacity utilization of the Kochi terminal in Q3. The breakeven of this terminal is at 25% of operational level.
• It expects to set up a terminal in the east coast within a year.
Disclaimer: Invested in Core PF.