Hi Anand,Rohit and Kishor…..I was’nt referring to Essar Oil in the earlier Blog….the Company that I have in mind is PETRONET LNG @ Rs 162…It’s IPO was in early 2004 at Rs 15 and got listed at Rs 16.50…at the time the then MD and CEO ,Mr Mathur and Director Finance,Mr Dasgupta has asserted strongly that after 5 years the Company would take on a different momentum after Terminals and Capacities went on stream fully….they were fully right !…the Company has been promoted by India’s leading Oil and Gas PSUs…GAIL,ONGC,Indian Oil and BPCL …It imports LNG largely from Ras Gas ,Qatar by Specialised LNG Shipping Carriers and regasifies it at it’s Dahej and Kochi Terminals for distribution largely through a strong Pipeline Network…It’s a Capital Intensive Business with a fairly long Gestation Period…and requires strong Domain Technical and Operating Expertise and a robust Distribution Infrastructure…explains why it is a PSU promoted by other PSUs
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PETRONET LNG
IPO Rs 13-Rs 15 ~ Price Fixed Rs 15 ~March 2004
Size Rs 26 crs ~ Oversubscribed 4.2 Times
SHARE PRICE TREND ON THE BSE 2004-2012
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Year
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Open
Price
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High
Price
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Low
Price
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Close
Price
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| |
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2004
|
16.50
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33.25
|
14.45
|
31.35
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|
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2005
|
31.80
|
71.90
|
31.60
|
65.95
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|
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2006
|
66.40
|
68.50
|
35.50
|
48.20
|
|
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2007
|
48.50
|
117.50
|
41.15
|
107.30
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|
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2008
|
108.90
|
121.90
|
29.65
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39.60
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|
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2009
|
40.00
|
82.40
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31.60
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71.65
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2010
|
72.00
|
131.30
|
69.00
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124.95
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2011
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126.00
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185.85
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105.10
|
155.80
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|
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2012
|
157.75
|
179.75
|
150.50
|
161.70
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Last Year in 2011 while Sensex retreated 25%,PETRONET LNG was up smartly from end 2010 levels of Rs 125 to close 2011 at levels of Rs 150 + after recording it’s alltime high of Rs 186 in the year
The huge shortage of gas in India has prompted the company to fast track the Dahej Expansion to 15 Million Tonnes by not waiting for the Storage Tanks to come up,but focuisng to get the marine and regasification facilities up first…Storage Tanks take upto three and a half years to four years to be up while the regasification unit can be set up in Two years as too the Jetty….These new expansion facilities should be ready mid 2013….With 15 Million Tonnes Capacity the Dahej Terminal will be the second largest in the world …the largest with a capacity of 17 million tonnes is in the UK
Domestic Gas Shortage has two clear reasons
~ Falling Production from Reliance’s KG-D6 field
~Surge in Demand from Power and Fertiliser Sectors
By 2015,India’s LNG regasification capacity would be 30 Million Tonnes,up from just 13 Million currently….PETRONET LNG would have 15 Million capacity at Dahej and 5 Million capacity at Kochi…. Around 75% of the demand is from The Power Sector,followed by Fertilser and then City Gas and Others
The Financials are also pretty robust….The Dividend record extends to five years now with it being raised to 20% in FY 2011,when the Sales crossed Rs 13000 crs and the PAT was the highest ever @ Rs 620 crs giving an EPS of Rs 8+on an Equity of Rs 750 crs (FV Rs 10)….Networth was Rs 2700 crs at March 31,2011 and should cross Rs 3200 crs in FY 12 read more
