Petronet LNG is down 7% as a result of poor March quarter performance

Petronet LNG shares fell 7% to Rs 229.55 in intra-day trade on the BSE on Wednesday after the company published a poor set of data for the March quarter (Q4FY21). On October 14, 2020, the stock reached a 52-week low of Rs 207.

The state-owned oil marketing and distribution corporation reported an 11.6 percent year-on-year (YoY) decrease in consolidated income from operations at Rs 7,575 crore, while total volumes were unchanged YoY (down 7.2% QoQ) at 218 tbtu. The company’s stated profit after tax increased by 73.6 percent year on year to Rs 623.4 crore.

Blended margins were Rs 59.3/mmbtu, and EBITDA (earnings before interest, taxes, depreciation, and amortisation) was Rs 1091.1, up 56.4 per cent year on year due to increased operating expenses in Q4FY20.

The firm declared a final dividend of Rs 3.5 per share, in addition to an interim dividend of Rs 8 per share, for a total payment of Rs 11.5 per share. For FY21, this amounts to a dividend payout of roughly 60% and a dividend yield of 4.6%.

On the operational front, Petronet LNG announced results for Q4FY21 that were substantially in line with expectations. Profitability, on the other hand, was reduced due to a drop in other revenues. According to ICICI Securities, they are looking for management comments on the near-term prospects since continued increase in contractual LNG (liquefied natural gas) sales as well as regas volumes, as well as stability in blended margins, is critical.

The government established Petronet LNG as a joint venture to import LNG and build LNG terminals in the nation, incorporating India’s top oil and natural gas sector giants such as GAIL (India), Oil & Natural Gas Corporation (ONGC), Indian Oil Corporation (IOCL), and Bharat Petroleum Corporation (BPCL). As of March 31, 2021, each business owned 12.50% of Petronet.

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