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Spot prices cross $ 9/mmbtu-III: PLL should not fear competitors, for now
Dec 29:
As a result of lower offtake and higher spot prices, the Petronet LNG Ltd stock had taken a hit recently
8But brokerage houses have put up a "buy" sign on the stock of late
Here are the reasons why the stock is now preferred:
8As against expanded capacity of 15mmtpa, Petronet has got firm usage for 16.75mmtpa. It already operated at annualized rate of 12.4mmt in 1HFY17. So utilization levels in Dahej is not going to be a problem at all
8There is not much of a threat to PLL's business from upcoming LNG terminals either.
8While GSPC’s Mundra terminal may be completed in mid-2017, the lack of pipeline connectivity may remain a problem for next two years.
IOC's Ennore terminal is also likely to be completed in 2018. There is no progress however on pipeline there too.
8Then again the Dhabol terminal is operating a very low capacity due to the lack of a breakwater facility. The tender for breakwaters is yet to be awarded. After award, it would take four years for completion.
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8But brokerage houses have put up a "buy" sign on the stock of late
Here are the reasons why the stock is now preferred:
8As against expanded capacity of 15mmtpa, Petronet has got firm usage for 16.75mmtpa. It already operated at annualized rate of 12.4mmt in 1HFY17. So utilization levels in Dahej is not going to be a problem at all
8There is not much of a threat to PLL's business from upcoming LNG terminals either.
8While GSPC’s Mundra terminal may be completed in mid-2017, the lack of pipeline connectivity may remain a problem for next two years.
IOC's Ennore terminal is also likely to be completed in 2018. There is no progress however on pipeline there too.
8Then again the Dhabol terminal is operating a very low capacity due to the lack of a breakwater facility. The tender for breakwaters is yet to be awarded. After award, it would take four years for completion.
Click on Reports for more
