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Petronet LNG Q3 Results Review - Dahej Utilisation Hit By Higher Spot LNG Price: Systematix

Dahej witnessed lowest-ever utilisation during the quarter led by lower third party volume of just 47tbtu against 77tbtu in Q2FY23

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

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Systematix Research Report

Petronet LNG Ltd. reported Ebitda/profit after tax were 46%/63% ahead of our estimates largely driven by higher than forecasted use or pay charges booked during the quarter and one-off gain.

Petronet LNG booked Rs 8.5 billion against use-or-pay for CY22 against our expectation of Rs 2.4 billion. Further, the company recognized Rs 793 million on account of favorable outcome of an arbitration process.

Adjusting to these, Ebitda/profit after tax was 7% below our estimates. Volume came down sharply to 167 trillion British thermal unit versus 192 tbtu in Q2 FY23 constituting of just 154 tbtu at Dahej (69% utilisation) and 13 tbtu at Kochi (20% utilisation).

Tolling volume dropped to just 47 tbtu in Q3 FY23 versus 77 tbtu in Q2 due to higher spot LNG prices which led to volume de-growth.

On a positive note, current utilisation level at Dahej has reached back to 81% and the management expects it to remain strong in Q4 FY23. Dahej expansion plan is on track and should be completed by FY25.

Click on the attachment to read the full report:

Systematix Petronet LNG - Q3FY23.pdf

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