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[dudette]

Buy petronet LNG with short term target of 165

[Lavanay]

The oil sector will give multi-bagger returns in 3 years and it is a good time to invest in this sector, says Rajesh Jain of Pranav Securities, on NDTV Profit. The stocks to watch out for are ONGC, Petronet LNG, Indraprastha Gas, HPCL, Indian Oil Corporation, Essar Oil and KS Oils

[dudette]

Dhabol power (Ratnagiri Power) is expanding capacity to double as per economic times of 01/01/08 Petronet is a supplier of gas RLNG to Dhabol power which means petronet will have to pump up more gas in future.. 

Buy NOW

[Lavanay]

India`s Petronet LNG is in talks to raise a deal for liquefied natural gas from Exxon Mobil`s interest in Australia`s Gorgon project to 3.75 million tonnes, senior Petronet officials said on Tuesday.

India, Asia`s third-largest oil consumer, faces a natural gas supply crunch with booming demand for the clean fuel far outstripping domestic supplies.

Last year, the Australian government gave environmental clearance for two LNG production lines for the Gorgon field.

But in December, project operator Chevron Corp unveiled plans to add a third train so it can make more efficient use of the available workforce and generate greater revenue.

Each unit could generate 5 million tonnes of LNG per year, and increasing the project size to 15 million tonnes a year would raise Exxon`s share to 3.75 million tonnes from 2.5 million.

Amitava Sengupta, director of finance at Petronet LNG , said the U.S.-based firm was now close to offering this revised total output to Petronet.

The two firms in September signed a draft agreement under which Petronet would buy 2.5 milion tonnes of LNG a year for 25 years.

Chevron owns a 50 percent stake in Gorgon, while Exxon and Royal Dutch Shell Plc hold 25 percent each.

[krupp]

What target can we set at this market sentiment?

Thanks

[Lavanay]

100+ is definitely achievable by June 08. Accumulate on every fall. And if market sentiment improves, then we can see higher target as well.

[mehak1]

Petronet LNG Ltd announced its results for Q4FY08 which was much in line with expectations. Following are the important highlights of the results:

Revenues for the Q4 FY08 improved by 13.9% YoY at Rs.1,752.7 Cr whereas Net profit for the quarter was up by 13.2% YoY at Rs.120 cr. EBITDA for the quarter reduced by 60 bps at 12.3%, mainly due to rise in wage cost and other overheads.

 On Yearly basis Revenues grew by 19% YoY at Rs.6,655.3 cr. EBITDA on full year basis improved by 140 bps at 13.2%. EBIDTA stood at Rs.866.1 cr. Net profit margins were higher by 160 bps at 7.2%. Net profit for FY08 stood at Rs.474.7 Cr up by 51.5%.

 Company gets assured supply of 5 million tons of Gas from Ras gas of Qatar under the long term supply contract, which would be increased to 7.5 million tons from 2009. Short term contract with Ras Gas ensures supplies of 1.5 million tons of Gas to the company. The short term contract is also likely to be renewed in 2009. The company is operating at 130%
utilization level and sold 30 trillion BTUs. The company believes it will be able to maintain the current utilization level.

The installed capacity of the Dahej terminal in Gujarat is of 5 million tons. However, the plant has been operating with an installed capacity of 6.5 million tons after the de-bottlenecking operation were completed. Company is looking to increase the capacity of Dahej terminal to 10 million tons by December 2008. Setting up a 1,200 MW plant in Dahej is also a part of the capex plans announced by the company.

 Other expansion plans include setting up a new regasification terminal in Kochi with an installed capacity of 2.5 million tones. The company has already arranged the funding for the same project from IFC Washington. Overall the company will require funding of Rs 800 crores for various projects which will be through debt. However, for the Power Project the
company will need additional Rs.3200 crores of funds.

 At the Current Market price of Rs.79, Petronet LNG trades 12.5x its FY08 EPS of Rs 6.33. Being the first mover in the business Petronet LNG will always have a natural advantage over others. Increase in crude prices has compelled significant increase in Gas demand across the country as an alternative source of Power. That would ensure volume growth for the company, however supply of Gas is an issue faced by the company. But, we believe strong support from promoters (BPCL, GAIL, IOC and ONGC) would help to ensure constant availability of Gas supply.