Torrent Power's stock experienced a significant surge of up to 7% during intraday trading on the BSE, reaching a high of Rs 1,512 before decreasing to Rs 1,440 later in the day. The stock's movement was also influenced by the S&P BSE index's performance, which was up by 0.76% during the same trading period. Additionally, the stock hit its 52-week high at Rs 1,515 on that particular trading day, with approximately 3.39 lakh shares traded on the BSE.
The surge in Torrent Power's stock price comes in the context of the spot price of liquefied natural gas trading lower when compared to other alternative fuels, albeit showing a slight recovery from its three-year low point. The use of LNG for power generation has environmental benefits, as it reduces greenhouse gas emissions and pollutants like sulphur dioxide and particulate matter. A report from JM Financials highlighted that the Asian spot LNG price had slightly recovered to USD 9.4 per metric million British thermal unit (mmbtu), equivalent to 11% of Brent crude, compared to a historical average of 15%, yet it still remained relatively lower compared to alternative fuel prices due to weak demand and high inventory levels in Asia and Europe.
According to the same report, Asian spot LNG prices have significantly moderated in calendar year 2023 and 2024 so far from the historic highs seen in 2022. Despite this moderation, LNG prices have only marginally rebounded from their three-year low of USD 8.3/mmbtu. In terms of Torrent Power's financial performance, the company reported a 46% decrease in its consolidated net profit in the third quarter of financial year 2024, dropping to Rs 374 crore from Rs 695 crore in the same period in the previous financial year. Revenue from operations also experienced a decline in the December quarter of FY24 compared to Q3FY23, moving from Rs 6,443 crore to Rs 6,366 crore. Moreover, other oil and gas companies like GAIL, Indian Oil Corporation, and Bharat Petroleum Corporation also saw their stock prices rise on the back of lower LNG prices.