Apr'25 View on Petronet LNG Ltd

Petronet LNG Ltd was formed to develop, design, construct, own and operate Liquefied Natural Gas (LNG) Import and regasification terminals in India. It was incorporated in 1998 as a Joint Venture among GAIL, Indian Oil, Bharat Petroleum & ONGC holding 12.5% each. • Q3 miss: Weaker volumes, lower blended tariffs and higher opex. • We remain skeptical on India’s gas demand outlook. • Despite our liberal LNG growth assumptions, PLNG may not benefit much amid rising competitive intensity. • Recent PNGRB’s scathing report on LNG terminal weaken volume/tariff outlook. • PLNG’s large capex plans & diversification in petchem are key concerns. • Adj. EBITDA (down 7% yoy, 11% qoq) was 14% below our estimates. • Overall volumes at 238 tbtu (down 2% yoy, 3% below our estimates). • Blended realized tariff of Rs68/mmbtu was 4% below estimates.