Business

Large-cap stocks claim $7 per share dividend, yield up to 3.28%


With a market valuation of $31,822.50 Cr, Petronet LNG Ltd. is a large-cap company operating in the energy industry. As one of the leading public corporations in the industry, Petronet LNG Limited operates in the Indian energy market. With a current nominal capacity of 17.5 MMTPA, it built the nation’s first LNG receiving and recycling facility in Dahej, Gujarat and another terminal in Kochi, Kerala, with a nominal capacity of 5 MMTPA. For the financial year 2022–2023, the group announced a dividend of Rs. 7 per share.

The company said in a stock exchange filing that “In accordance with Regulation 42 SEBI (Listing Obligations and Disclosure Requirements), 2015, we would like to announce that a Record date has been set. Tuesday, November 22, 2022 for the purpose of determining Members’ rights to a Special Interim Dividend of Rs. 7/- (Rs 7 only) per share (with par value of Rs 10/- per share) of the share capital of the Company for the financial year 2022-23 as declared by the Board of Directors of the Company in the meeting. Their meeting will be held on 9 November 2022. The above announced interim special dividends will be paid on Monday, 5 December 2022. Dividend warrants will be posted on Monday. , December 5, 2022 and within 30 days of the announcement of the interim special dividend as provided for in the Companies Act, 2013.”

On an independent basis, the company has declared net sales of $15,985.73 crore in Q2FY23 against Rs. 10,813.08 cores posted in Q2FY22, representing year-over-year growth of 47.84%. The company has declared a net profit of Rs. 744.25 crore in Q2FY23 against Rs. 823.02 cores posted in Q2FY22, representing a decrease of 9.57% year over year. Petronet LNG’s EPS fell to Rs. 4.96 for the quarter ended September 2022 from Rs. 5.49 posted last quarter.

On a consolidated basis, the company reported net sales of $15985.73 crore in Q2FY23 vs $10813.08 crore posted in Q2FY22. Petronet LNG net profit drops 3.90% to $785.73 crore for the quarter ended September 2022 from $817.61 crore for the quarter ending September 2021. Petronet LNG’s EPS fell to Rs. 5.24 for the quarter ended September 2022 from Rs. 5.45 posted last quarter.

Posting Petronet LNG’s second-quarter results, brokerage research analysts Prabhudas Lilladher said, “We revise our FY 2023/24E estimates by ~0.5%, as we incorporate BS. H1. PLNG reported inline results with EBIDTA and PAT of Rs 11.7 billion (+10%Q/Q; PLe 11.0 billion) and Rs 7.4 billion (+6%Q/Q, PLe Rs7, 3 billion), as higher margins offset lower-than-expected volumes. The recent drop in spot LNG prices to $24/mmbtu from $46/mmbtu in Q1 is a good sign, as spot volumes for H1FY23 have dropped to 3tbtu compared to 15tbtu in H1FY22. In addition, the company’s long-term contracts are best suited in an uncertain global economy. We believe PLNG is a game to play against India’s growing LNG imports, although growing domestic gas production is supported by 1) high earnings visibility and 2 ) limited competition for its long-term reach in the LNG business. Repeat ‘BUY’ with a DCF-based PT of Rs325 (Rs307), as we update our BS H1FY23.”

“We remain bullish on the gas story in India, set to see a CAGR of 6–8% under the gas supply-demand model,” said research analysts at brokerage Motilal Oswal. our combustion, led by: a) development of new CGD gas types and b) higher consumption at fertilizer and refining/petrochemical plants. Total investment guidance for fiscal year 23-24 is INR 42.5 billion. The company will set up a petrochemical project which will produce PDH-PP (capacity 500ktpa) and another product as instructed. It is also setting up two new tanks in Dahej with an investment of INR 12.5 billion by CY24E. About 39% of the project has been completed. A third wharf is about to be built in Dahej with an investment capital of INR17b. FSRU on the East coast could cost the company INR 15 billion along with a 5 mm/year brown mine expansion at Dahej station at a cost of INR 6 billion (to be completed in phases before CY24E or early). CY25E). The stock traded at 5.4 times EV/EBITDA FY24E. We value PLNG on a DCF basis to arrive at a fair value of INR 297; maintain BUY.”

Shares of Petronet LNG Ltd. closes trading on friday at $212.90 a piece, down 0.82% from the previous close $214.65. At current market prices, the dividend yield rises to 3.28% as the special interim dividend is Rs. 7 is taken into account. For the financial year ending March 2022 or fiscal year 2022, Petronet LNG has announced a dividend of 115.00% with par value of $10 each or $11.5 per share. This yields a dividend of 5.42% at the current share price.

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms, not those of Mint.

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