CORPORATE PROFILE. PETRONET LNG LIMITED March, 2012

Transcription

1 CORPORATE PROFILE PETRONET LNG LIMITED March, 2012

2 OVERVIEW Global & India s Primary Energy Consumption Scenario India s Gas Scenario, Infrastructure Role of LNG in India About Petronet s Dahej & Kochi Terminals New Initiatives Performance

3 PRIMARY ENERGY PER CAPITA CONSUMPTION Source : BP Statistical Review June 2011

4 PRIMARY ENERGY CONSUMPTION (MTOE) - WORLD Fuel 2005 % 2010 % Year % 6% Oil Oil Gas Coal % 24% 36% Gas coal Nuclear Hydro Renewables Nuclear Hydro Renewables Total % 5% 6% 30% 24% 34% Year 2010 Oil Gas coal Nuclear Hydro Renewables Source : BP Statistical Review-June 2011

5 PRIMARY ENERGY CONSUMPTION (MTOE) - INDIA Year 2005 Fuel 2005 % 2010 % Oil Gas % 5% 30% Oil Gas coal Nuclear Coal % 8% Hydro Renewables Nuclear Year 2010 Hydro % 5% 1% Renewables Total % Oil Gas coal Nuclear 53% 11% Hydro Renewables Source : BP Statistical Review-June 2011

6 INDIA A MAJOR GAS/LNG CONSUMER 13th largest gas consumer 70 BCM (~190 MMSCMD) 6th largest LNG importer 16 BCM (~44 MMSCMD) Economy increasing at CAGR of 7-8% p.a. with similar increase in Energy Consumption Share of Natural Gas in Indian Energy basket to increase from 11% to 20% by 2025 Despite increase in domestic gas productiondependency on imported gas to increase substantially Pipeline network- developing into a national grid- needs to grow faster, connecting new markets

7 CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO (Bcf/day) (MMSCMD) Demand Supply 385 (13.6) 434 (15.3) 488 (17.2) 550 (19.4) (10.8) (5.5) (8.6) 192 (6.8) (7.0) (7.2) (8.5) (7.6) Demand Mercados Analysis, 2011 Supply Directorate General of Hydrocarbons (DGH)

8 SECTOR WISE PROJECTED GAS DEMAND Gas Demand (MMSCMD) Source : Mercados Analysis, 2011

9 LARGE DEMAND BUT SENSITIVE TO PRICE Gas demand and supply, 2015 Mmscmd, at customer gate prices year end consumption Price of $16-17/ mmbtu Low Price of $13-14/ mmbtu Medium Price of $11-12/ mmbtu High Price of $8-10 mmbtu Potential demand, 2015 Sectors with demand Industries CNG transport Refineries Industries Power cogen Peaking power plants Baseload power New fertilizer plants Imports Prices at Crude of $ 100/Bbl Domestic supplies 1 Based on estimated LNG supply of 8 mtpa in 2015 including RasGas (7.5 mtpa) and 1.5 mtpa from Gorgon LNG in 2015 SOURCE: Indianpetro; DGH; Company annual reports; Expert interviews; McKinsey analysis

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12 LNG IN INDIA Hydrocarbon Vision 2025 envisaged a GDP growth of 5-6% for the E&P sector along with demand supply scenario of oil & gas in the Country Current GDP growth of 7 9% translate into overall energy demand growth at CAGR of 7.50% Given India s growing energy requirements & unlikelihood of matching increase in the domestic supplies, despite some significant oil & gas finds recently, the import dependence is only going to accentuate sharply in the coming years LNG Regas Capacities Presently, India s LNG import capacity around 13.5 Mmtpa through 2 terminals & meeting approx. 20% of total gas supply of the country

13 PETRONET LNG LIMITED Incorporated on April 2, 1998 Authorized Capital Rs crores (USD 240 Million), Paid up capital Rs. 750 crores (USD 150 Million) Commencement of Commercial Operations - April, 2004 Equity 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) 10% held by GDFI (part of GDF SUEZ) 5.20% ADB

14 TOWARDS THE VISION Vision Business Strategy To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international presence Revenue grew 31.5% EBITDA growth 23% Revenue Pursue synergistic business opportunities Continue excellence in LNG business - Focus on higher capacity utilization and better operational efficiencies Diversify LNG sources Diversify business EBIDTA Create and manage worldworld-class LNG infrastructure (All Values in INR) (9 Months) Gas-based power generation Venture into city-gas distribution/ direct marketing to far-flung consumers Solid cargo port at Dahej Maintain highest standards of business ethics

15 TOWARDS THE VISION Vision Business Strategy To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international presence Revenue grew 31.5% EBITDA growth 23% 3264 Revenue Pursue synergistic business opportunities Continue excellence in LNG business - Focus on higher capacity utilization and better operational efficiencies 2639 EBIDTA Create and manage worldworld-class LNG infrastructure (All Values in USD) Diversify LNG sources Diversify business (9 Months) Gas-based power generation Venture into city-gas distribution/ direct marketing to far-flung consumers Solid cargo port at Dahej Maintain highest standards of business ethics

16 DAHEJ LNG TERMINAL Located at West Coast, State of Gujarat in the Gulf of Cambay Commencement of Operations in 2004 Capacity (Mmtpa) : Truck Loading facility can handle 2500 loadings/ yr. LNG Cargoes unloaded : 845 (March 12, 2012) Further capacity expansion to 15 Mmtpa Second Jetty Regas & Storage Capacity Pre Project Activities started : Under Construction : DFR Completed

17 DAHEJ LNG STORAGE TANKS

18 DAHEJ REGAS FACILITIES WITH AIRAIR-HEATER

19 LNG TRUCK LODING FACILITIES DAHEJ WEIGH BRIDGE VAPORISATION FACILITIES

20 KOCHI LNG TERMINAL LNG Terminal located in Special Economic developer status Capacity 2.5 Zone with Co- 5.0 Mmtpa Tied up 1.44 MMTPA LNG from Exxon Mobil s Gorgon Project Two Storage Tanks being constructed by IHI, Japan Regasification Facilities being constructed by CTCI, Taiwan Marine Facilities being constructed by Afcons Infrastructure Ltd Progress on schedule, overall completion 94.5%, scheduled commissioning by end 3rd Qtr., 2012

21 KOCHI TERMINAL 21

22 KOCHI STORAGE TANK

23 KOCHI - MARINE FACILITIES

24 NEW THIRD TERMINAL AT EAST COAST Proposed Capacity: 5 Mmtpa Location: Gangavaram, Andhra Pradesh Regasification Scheme: Indirect Fluid using ambient air heater PFR Completed DFR under preparation Estimated Project cost: Rs.4500 Crores (USD 900 Million) Gangavaram

25 INTEGRATED POWER PLANT AT DAHEJ & KOCHI Proposed power plants of 3x356 MW-ISO (total 1068 MW CCGT) with improved performance, the expected output is 1200 MW Fuel requirement of 1.0~1.1 Mmtpa LNG for each Plant Implementation schedule 12~15 months for pre-development activities 33 months for construction and commissioning DFR for a 1200 MW Power Plant completed for Dahej Land Identification at Kochi under progress Power project to harness cold energy from LNG Terminal

26 DIRECT MARKETING Petronet exploring opportunities to supply LNG to Coastal area consumers through small LNG Vessels in India and neighbouring countries Direct Marketing by focusing on the following areas: Signed HOAs with bulk end consumers in Power, Refineries & Fertilizers Sectors LNG/LCNG supplies through Trucks, to LNG hubs, Satellite Stations at customer s premises in regions not serviced by pipelines

27 BUSINESS MODEL Robust Model LNG supply contract with RasGas, Qatar & Exxon Mobil, Australia Gas Sales Agreement with GAIL, IOCL & BPCL back to back with SPA Time Charter Agreement with established consortium Entire Fuel cost pass through including exchange rate Location Proximity to LNG suppliers Most competitive LNG transportation cost Proximity to Customers HBJ, DUPL and GSPC network in Gujarat

28 FINANCING Very strong parentage and a robust business model Financing cost is amongst the lowest in the Industry With the use of effective hedging techniques, the Company has been able to maintain a low cost of debt service even in such turbulent times The average cost of debt is 9.06% p.a. in rupee terms

29 PERFORMANCE GRAPH Sales/ Service TBTU Net Worth (Rs. Crores)

30 PERFORMANCE GRAPH Net Worth USD Million Sales/ Service TBTU

31 PERFORMANCE GRAPH Turnover Rs. Crores PAT Rs. Crores

32 PERFORMANCE GRAPH Turnover USD Million PAT USD Million

33 PERFORMANCE BASED ON EMPLOYEE PARAMETERS No. of Employees Turnover/ employees (USD Million) Profit Before Tax / Employee (USD Million) % 3.41% 2.53% Employee Remuneration cost as % of Profit) Total no. of employees : 296 Training & Development : 6 Mandays / Employee Average Age: 34 years (58% employee in years of age) 63% of employees are Graduates or Post Graduates Average years of association of employees with Company 5 years Attrition rate : 4.34% Note: Exchange Rs49/- per USD

34 FINANCIAL PARAMETERS Earning Per Share (INR) Year (9 Months) EPS (INR) P/E (9 months) D/E Ratio

35 FINANCIAL PARAMETERS Earning Per Share (USD) Year (9 months) EPS (USD) P/E D/E Ratio (9 months)

36 SHAREHOLDERS WEALTH CREATION As on Mar, Mkt. Price INR Current Mkt Price (INR) Current

37 SHAREHOLDERS WEALTH CREATION As on Mar, Current USD Per Share Mkt Price USD Current

38 FINANCING STRUCTURE (INR CRORES) Particulars Dahej Kochi 2nd Berth Dahej Terminal Terminal Dahej Expansion Total Shareholders Fund Equity Capital/Internal accruals/premium Debt Total Means of Finance The existing debt equity ratio is 1.03 : 1; providing enough room to leverage Balance Sheet for new projects in future.

39 FINANCING STRUCTURE (USD MILLIONS) Particulars Dahej Kochi 2nd Berth Terminal Terminal Dahej Dahej Expansion Total Shareholders Fund Equity Capital/ Internal Accruals/ Premium Debt Total Means of Finance The existing debt equity ratio is 1.03 : 1; providing enough room to leverage Balance Sheet for new projects in future.

40 Petronet LNG India Ranking Financial Express (FE 500) Business Standard (BS 1000) Rank Rank Year Year

41 PETRONET LNG GLOBAL RANKING A latest study by the Plimsoll Global Analysis on Global Crude Oil & Gas Extraction Industry among 1000 largest companies around the world, ranked Petronet LNG as: 150th Largest Company 301th most Profitable Company

42 CSR -THE JOURNEY HAS JUST BEGUN TOWARDS AN INCLUSIVE SOCIETY - DAHEJ Participative community development programmes with GIDC Luvara & Lakhigam villages CODEGAZ, the CSR arm of our strategic partner GDF Suez supports our cause. Health & Sanitation Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage. Preventive and Social medicine aids (includes primary health centre). Education and Employment generation programs Construction of School, Scholarship & Vocational Training. Sponsorship of differently abled children of Tamanna School & inauguration of Petronet LNG Centre for Vocational Rehabilitation. Indirect employment for local villagers in the area of Housekeeping & Horticulture. Community Development Renovation of personal facility & fencing at Panchayat office of Luvara Village, Gujarat. Govt. Development Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre.

43 CSR - THE JOURNEY HAS JUST BEGUN TOWARDS AN INCLUSIVE SOCIETY - KOCHI Developing Infrastructure Facilities at RMP Todu Canal Kalamukhi Junction Rehabilitation Area in Puthuvypeen Renovation of Building of UPES Government School, Puthuvypeen Distributed uniforms, water bottles & note books to all the 112 students of UPES Government School, Puthuvypeen Conducted Eye Screening & Cataract Operation Camp for Puthuvypeen & neigbouring villages (768 Screenings, 26 operations) Sponsoring of local events like boat race, cultural and sports events in schools Health Camp being planned for the local population of Puthuvypeen

44 Thank You