Petronet LNG hits 52-week low amid weak Q3 earnings

Analysts expects drop in profits mainly on account of higher depreciation charge, higher interest cost and lower operating rate of Kochi plant.

Petronet LNG is trading lower by 1% at Rs 104, extending its over 10% fall in past two weeks, on concerns of weak financial performance for the quarter ended December 31, 2013 (Q3 FY14).

The stock opened at Rs 104 and touched a low of Rs 103, also its 52-week low price on the BSE. A combined 340,000 shares have changed hands on the counter so far on the BSE and NSE.

Analyst at Kotak Securities expect Petronet LNG report drop in profits mainly on account of higher depreciation charge,  higher interest cost (with the commissioning of Kochi terminal) and lower operating rate of Kochi plant.

We expect Q3 FY14 earnings for Petronet LNG to be down 57% YoY hit by loss at its Kochi terminal and lower profit at Dahej terminal, says Bank of America Merrill Lynch in results preview.

Meanwhile, the company’s September quarter performance was also affected by lower volumes and lower utilization level at the Kochi terminal.

The stock has underperformed the market by falling 19% after announcement of September quarter results on October 18, 2013 against a marginal 0.63% decline in benchmark S&P BSE Sensex.