Petronet LNG: Posts highest-ever quarterly profit; Steady growth to continue

MUMBAI: An appreciating rupee helped Petronet LNG, which reported a strong Rs 114 crore forex gain in the September '12 quarter against a Rs 52.6 crore of forex loss in the same quarter of last year. This was the major factor enabling it to post 30 per cent net profit gain to Rs 314.8 crore - its highest-ever quarterly profit.

The company's reported net profit figure has been on the upper side of the market expectations that enabled the scrip to gain marginally post results.

The company is expanding its 10 million tonne per annum (MTPA) Dahej terminal and is nearing completion of 5 MTPA terminal at Kochi. The declining domestic natural gas production is expected keep the demand for imported gas robust, which will bring a gradual but steady growth for Petronet LNG.

With this result the scrip is valued at 11.3 times its earnings for trailing 12 months.

Petronet LNG imports liquefied natural gas from countries like Qatar and regassifies it, which enters the country's natural gas pipeline grid and supplied to consumers like power plants, urea plants, glass or ceramic making units. It has back-to-back supply contracts for all its purchases and earns regassification margin.