In a positive for Gujarat State Petronet (GSPL), PNGRB has re-computed the transmission tariff for GSPL’s High Pressure network by 11% to Rs26.6/mmbtu, says Nomura in a research note
The regulator Petroleum & Natural Gas Regulatory Board (PNGRB) has re-computed the transmission tariff for High Pressure network Gujarat State Petronet (GSPL) by 11% to Rs26.6/mmbtu.
According to Nomura, while exact impact of revised tariff order will be clear once zonal apportionment of tariff is finalised, the research note estimates, the impact is as follows:
(a) Annual transmission revenue increase of Rs820 million (post-tax impact of
Rs0.95/share – 12% of Nomura’s FY15F EPS of Rs8.0/share); and
(b) Retrospective gains of Rs1.4 billion for the period July12 to Mar14 (post tax impact of Rs1.6/share or 20% of Nomura’s FY15F EPS).
The tariff increase is a further positive for GSPL, points out Nomura. The research note says, “We highlight that GSPL was already a net gainer of the tariff-setting exercise. The average tariff for GSPL had increased by 11%-12%, and it had booked a gain of Rs1 billion for the nine-month period from July-12 to Mar-2013.”
However, PNGRB has said that it will file an appeal in the Supreme Court against the Appellate Tribunal’s order. Nomura has had a view, that there was not much case for retroactive tariff fixation, even for the period prior to network authorisation.
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