Petronet LNG in a sweet spot

With firm demand outlook and low gas prices, capacity expansions should boost earnings

As the tide turned in its favour in the last financial year, Petronet LNG saw a good year both in terms of volumes and profitability. The renegotiated RasGas prices, which made imported gas competitive, boosted demand. The decline in domestic gas production further helped Petronet, which gets its revenues by largely importing gas and marketing it in the country. Continued capacity expansions also proved handy; it enabled Petronet double its net profit to Rs 1,235 crore in the first nine months of FY17. The March quarter is also expected to be robust. Not surprisingly, the Petronet stock recently scaled its