Capitaline

Analyst Meet / AGM 10-Aug-19

Conference Call

Petronet LNG

Expects capex of Rs 500 crore in FY20

Petronet LNG conducted conference call to discuss results for the quarter ended June 2019 and way forward. Mr. Mukesh Gupta- CGM & VP (F&A) and Mr. Vivek Mittal- GM (Marketing) of the company addressed the call.
Highlights of the Concall

Volumes during the quarter was 226 thousand btu (TBTUs) in Q1FY'20 compared to 220 thousand btu in Q1FY'19 and 205 thousand btu in Q4FY'19.

Dahej terminal volume was 217 thousand btu while Kochi terminal handled 9 TBTUs of LNG.

Out of total Dahej volumes- 100 TBTUs were from long-term supply, 5 TBTUs were for short-term supply and 112 TBTUs were re-gasification quantities.

Current Dahej utilization was 113% compared to 112% in Q1FY19 and 105% in Q4FY19.

No reversal of Q4FY19 inventory loss as spot LNG prices are still low.

The company does not expect spot LNG prices to go up much in winter as projects like Cameron, Freeport and Prelude ramp-up are coming.

Three sections of the Kochi-Mangalore pipeline are pending. As per GAIL (India) it should get commissioned by October 2019 which shall increase Kochi terminal utilisation from 10% to 25-30%. Customers for Kochi volumes are OMPL, MRPL and MCF.

The company feels negotiating with RasGas every now and then for high LNG prices compared to spot LNG is not prudent; hence, would not do it. In Dahej, Gorgon volumes in Q1FY20 were 9.2tbtu. 1-2 cargoes of Gorgon have been deferred but from next year Gorgon should run at full capacity. RasGas volumes are in line with no impact

Petronet LNG has submitted bid on Bangladesh while Sri Lanka is progressing well and it is yet to decide on East coast terminal site. The company is participating in Andaman tender.

The company is looking at various options for the investment in upstream assets in US for LNG supply in India at fixed cost which would be less than US$6/mmbtu

Petronet LNG has signed MOU with Gujarat Gas and IGL for setting up LNG dispensing unit at their outlets with target to cover major highways. 10-20 centers are planned with OMCs also initially at Rs100-120 crore capex.

The company expects capex of Rs 500 crore in FY20 while for FY21-23 is Rs700-800 crore each year with new projects being two new tanks (Rs1300 crore) and a jetty (Rs1000 crore) in Dahej which will increase capacity from 17.5 mmtpa to 19.5mmtpa in 3 yrs

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