Summary
Petronet LNG (PLNG) reported stellar Q1FY17 show with PAT of Rs 3.8 bn (up 55%q-o-q, 120% y-o-y) 40% ahead of our estimates. Earnings beat was driven by: (i) higher Dahej volumes (up 11% q-o-q), driven by strong third-party sales (surged 89% q-o-q); and (ii) robust trading margin at $0.7/mmbtu (versus estimated loss of $0.2/mmbtu). Consequently,
Dahej terminal utilisation hit a 7-year high at 116%, despite the sequential 4% decline in long-term (RasGas) volumes. Management expects strong utilisation levels even after brown-field expansion at Dahej by Oct ’16, as the company has already signed long-term use-or-pay contracts with end consumers. Over next five y......