 "Petronet LNG share price drops 4% on mixed Q3FY25 results; details here")
Petronet LNG share price: Shares of India’s largest liquefied natural gas (LNG) importer, Petronet LNG, dropped 3.54 per cent to the day's low of Rs 300.35 on the BSE during intra-day deals on Tuesday, January 28, 2025. The fall in the state-run company's share price followed the company posting mixed financial results for the third quarter of FY25 (Q3FY25).
Petronet LNG Q3FY25 results
In Q3FY25, Petronet LNG's consolidated profit dropped 25.6 per cent year-on-year to Rs 901.7 crore from Rs 1,212.9 crore in Q3FY24. However, on a sequential basis, profit was 4.45 per cent higher than the Rs 870.61 crore registered in the preceding quarter, the company said in its filing to exchanges.
The company's revenue from operations during the quarter under review was reported at Rs 12,226.66 crore, down 17 per cent from Rs 14,747.21 crore registered in the corresponding quarter of the previous financial year. On a sequential basis, the revenue fell 6 per cent from Rs 13,021.8 crore reported in the previous quarter.
Petronet LNG's earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at Rs 125 crore in Q3FY25 against Rs 119.9 crore reported in Q2FY25, while the Ebitda margin increased to 10.21 per cent from 9.21 per cent Q-o-Q.
Given this, brokerage firm Motilal Oswal Financial Services (MOFSL), in its report, has assigned a ‘Buy’ rating on the scrip. Petronet LNG’s Q3FY25 revenue, the brokerage said, came in below their estimates, as total volumes stood below expectations, primarily due to lower third-party cargos. "While Ebitda was also marginally below estimates, higher-than-expected other income led to PAT coming in line with our estimates."
The brokerage further noted that spot LNG prices were high, averaging $13.9/mmbtu in Q3 (up 7 per cent Q-o-Q), and continue to remain elevated in Q4FY25 to date, averaging $14.2/mmbtu. Mmbtu stands for metric million British thermal unit.
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At the operations front, MOFSL said volumes came in below their estimates, primarily due to lower third-party cargos. "Dahej utilisation was below estimates, while Kochi utilisation stood in line."
About Petronet LNG
Petronet LNG is a joint venture company set up to import LNG and establish LNG terminals in India. The company has set up two terminals, one at Dahej, Gujarat, and another at Kochi, Kerala. Petronet's terminals account for around 33 per cent of gas supplies in the country. The company was incorporated in 1998 and is promoted by leading oil and natural gas industry players, including GAIL, ONGC, IOCL, and BPCL.
The state-owned company enjoys a market capitalisation of Rs 45,262.50 crore on the BSE, as of January 28, 2025. Petronet LNG is a constituent of the BSE 200 index.
The natural gas supplier company's shares have a 52-week range of Rs 384.90-253.40 on the BSE.
At around 1:33 PM on Tuesday, Petronet LNG shares were quoted trading at around Rs 301.40, down 3.15 per cent from their previous close of Rs 311.20 on the BSE. A combined total of 3.72 million equity shares of the counter, estimated to be worth around Rs 114.05 crore, exchanged hands on the BSE and NSE.
The benchmark BSE Sensex, on the other hand, was trading +870.94 points or 1.16 per cent higher at around 76,237.11 levels.