In India, the oil and gas industry is a pivotal part of the eight fundamental sectors, playing a substantial role in shaping decisions in numerous economic areas. Given the close relationship between Indias economic growth and energy demand, the need for oil and gas is expected to rise, making this sector favourable for investment.
One of the companies which is expected to benefit is Petronet LNG. Petronet LNG reported its Q4 results on May 22 2024. Petronet LNG is out in good shape and has posted remarkable figures for its recent Q4 results.
Want to know more about Petronet LNGs latest quarterly report? Read on to find out.
About Petronet LNG
Petronet LNG limited, an oil and gas corporation in India, was founded by the Indian Government in 1998. Its primary objectives are to:
- Import liquefied natural gas (LNG) and
- Establish LNG terminals within the country.
Petronet LNG limited is a collaborative enterprise endorsed by these entities:
- Oil and Natural Gas Corporation Limited (ONGC)
- Indian Oil Corporation Limited (IOC)
- Bharat Petroleum Corporation Limited (BPCL) and
- Gas Authority of India Limited (GAIL)
Petronet LNG limited has accomplished the following:
- Established Indias inaugural LNG receiving and regasification terminal in Dahej, Gujarat and
- Set up an additional terminal in Kochi, Kerala.
Petronet LNG limited provides a range of services to meet the diverse needs of its customers, including:
- Storage and reloading
- Regasification
- LNG truck loading facilities
- Gassing-up and cooling-down facilities and
- Bunkering
Petronet LNG limited holds a dominant position in the Indian gas market:
- It accounts for 33% of gas supplies in the country and
- It handles approximately 75% of LNG imports in India.
Also read: Fueling Indias growth engine: Evolution and outlook of oil & gas industry
As of March 2024, the shareholding pattern of the company is as follows:
| Shareholders | Holding |
| Promoters | 50.00% |
| FIIs | 26.22% |
| DIIs | 11.37% |
| Public | 12.41% |
Petronet LNG Q4 results
Petronet LNG limited reported robust financial outcomes for the fourth quarter (Q4) of the fiscal year 2023-24 (FY24).
Key highlights:
Profit up year-over-year (YoY): Net profit increased 24% to 734.07 crores in Q4 FY24 compared to 591.24 crores in Q4 FY23. While profit grew YoY, it decreased by 38% compared to the previous quarter (Q3 FY24).
Highest annual profit ever: FY24 saw Petronets record-breaking net profit of 3,527 crores, driven by a 22% rise in volume throughput.
Revenue stable: Q4 FY24 revenue remained steady at 13,793.16 crores compared to 13,873.93 crores in Q4 FY23.
Petronet LNG share price dividend declared: The corporation suggested a final dividend of 3 per share.
Furthermore, the processing of LNG volume saw an uptick in Q4 FY24 relative to both the previous and the same quarters of the last fiscal year.
Must read: Bharat Electronics financial milestone: Q4 result and share price analysis
QoQ performance
Here is a quick comparison of the quarter-on-quarter performance:
| Income Statement (in crores) | Q4FY24 | Q3FY24 | QoQ change |
| Revenue from Operations | 13,793 | 14,747 | -6.47% |
| Operating Profit | 1,104 | 1,705 | -35.25% |
| Profit Before Tax | 992 | 1,596 | -37.84% |
| Net Profit | 734 | 1,190 | -38.32% |
YoY performance
| Income Statement (in crores) | FY24 | FY23 | YoY change |
| Revenue from Operations | 52,729 | 59,899 | -11.97% |
| Operating Profit | 5,207 | 4,856 | 7.23% |
| Profit Before Tax | 4,747 | 4,282 | 10.86% |
| Net Profit | 3,527 | 3,187 | 10.67% |
Petronet LNGs competitors
Here are some of the market competitors of Petronet LNG:
| Name | P/E | ROE % | D/E | ROCE % |
| Petronet LNG Ltd | 12.96 | 22.17 | 0.18 | 26.39 |
| Adani Total Gas Ltd | 161.72 | 20.47 | 0.43 | 21.21 |
| Gujarat Gas Ltd | 35.08 | 15.00 | 0.02 | 20.15 |
| Indraprastha Gas Ltd | 18.31 | 22.36 | 0.01 | 29.32 |
Petronet LNG has the lowest P/E ratio (12.96), indicating it may be undervalued compared to its competitors, especially Adani Total Gas with a significantly high P/E of 161.72. Indraprastha Gas leads with the highest ROE (22.36%), followed closely by Petronet LNG (22.17%).
Indraprastha Gas has the highest ROCE (29.32%), suggesting efficient use of capital, with Petronet LNG also performing well (26.39%).
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Petronet LNG shares news
As of May 24, 2024, Petronet LNGs share price is 305.40.
If we look at Petronet LNGs share price history, the stock has offered a return of 26.15% in the past 5 years. The one-year return has been more impressive at 35.69%.
Considering Petronet LNGs share price target – Analyst opinions on the stock were mixed as of May 23, 2024. While 13 analysts recommended holding the stock, a significant number, 11 analysts recommended selling it (6 strong sell and 5 sell).
Only 7 analysts recommended buying the stock (4 buy and 3 strong buy). Overall, the consensus recommendation leaned towards holding the stock.
Bottomline
In conclusion, oil and gas still form a vital part of the Indian economy, as growing energy requirements continue to propel development and present investment opportunities. Petronet LNG is a major player in this industry, which demonstrated good results for Q4 FY24 with record net profit for the year despite declines in some quarters.
A strong market position and quality infrastructure make Petronet LNG ready to meet any future demand and at the same time be profitable. Nonetheless, analysts have mixed feelings concerning its shares advising caution when dealing with them.
So, before making any decision, do a thorough analysis. Happy investing!
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