CORPORATE PROFILE PETRONET LNG LIMITED MAY,

Transcription

1 CORPORATE PROFILE PETRONET LNG LIMITED MAY, 2013

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 CONSUMPTION (mtoe) - WORLD Year 2005 Fuel 2005 % 2011 % Oil Gas Coal Nuclear Hydro Renewables Total Source : BP Statistical Review-June % 6% 1% Oil 36% 28% 23% 5% 6% 2% Oil 33% 30% 24% Gas Coal Nuclear Hydro Renewables Year 2011 Gas Coal Nuclear Hydro Renewables

4 PRIMARY ENERGY CONSUMPTION (mtoe) - INDIA Fuel 2005 % 2011 % Oil % 1% 1% 33% Year 2005 Oil Gas Coal Gas % 9% Nuclear Hydro Coal Renewables Nuclear Hydro Renewables % 5% 2% 29% Year 2011 Oil Gas Coal Total Source : BP Statistical Review-June % 10% Nuclear Hydro Renewables

5 INDIA A MAJOR GAS/LNG CONSUMER 13th largest gas consumer 61 bcm (~165 mmscmd) 5th largest LNG importer 17 bcm (~46 mmscmd) Economy growing at CAGR of 6-7% with similar growth 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

6 CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO Demand (mmscmd) (bcf/day) Domestic Supply (22.2) 625 (25.3) (15.7) 442 (12.7) 358 (10.9) (9.6) 307 (8.0) (8.8) (7.5) (8.2) (5.6) (6.1) (3.6) (3.6) (3.9) (4.3) Source : Vision 2030, Natural Gas Infrastructure in India

7 SECTOR WISE PROJECTED GAS DEMAND Gas Demand (mmscmd) Source : Vision 2030, Natural Gas Infrastructure in India Power Fertilizer City Gas Industrial Petchem/Refine ries/internal Cons Power Fertilizer City Gas Industrial Petchem/Refineries/Internal Consumption Sponge Iron/Steel Total Realistic Demand

8 LARGE DEMAND BUT SENSITIVE TO PRICE Petronet Analysis-2013 Petronet Analysis 2013 Gas demand and supply, 2016 mmscmd, at customer gate prices year end consumption Price of $19- Low 20/ mmbtu Price of $16-17/ mmbtu Medium Price of $13-14/ mmbtu High Price of $11-12 mmbtu Potential demand, 2015 Sectors with demand Industries CNG transport Refineries Industries New fertilizer plants Peaking power plants Base load power Imports Prices at Crude of $ 110/Bbl Domestic supplies SOURCE: Vision PLL analysis 8

9 INDIA S GAS INFRASTRUCTURE Existing P/L Network : KMS (283 mmscmd) Proposed additional P/L Network : KMS (540 mmscmd) by Dahej LNG Terminal Gangavaram LNG Terminal Hazira LNG Terminal Dabhol LNG Terminal Kochi LNG Terminal

10 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 6-7% translate into overall energy demand growth at CAGR of 7.00% 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 18.0 mmtpa through 3 terminals & meeting approx. 35% of total gas supply of the country

11 PETRONET LNG LIMITED Incorporated on April 2, 1998 Authorized Capital US$240 Million, Paid up capital US$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

12 TOWARDS THE VISION Vision To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international presence Revenue grew 27% EBITDA growth 19% 1102 Revenue 1311 EBIDTA (All Values in US$ Million Business Strategy Create and manage world-class LNG infrastructure Pursue synergistic business opportunities Continue excellence in LNG business - Focus on higher capacity utilization and better operational efficiencies - Diversify LNG sources Diversify business - 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

13 DAHEJ LNG TERMINAL Located at West Coast, State of Gujarat in the Gulf of Cambay Commencement of Operations in 2004 Capacity (mmtpa) : (2004) (2009) (2016) Truck Loading facility can handle 2500 loadings/ yr. LNG Cargoes unloaded : cargoes Further capacity expansion to 15 mmtpa Second Jetty : Under Construction Regas & Storage Capacity : DFR, FEED Completed EPC Award : November, 2013

14 DAHEJ LNG STORAGE TANKS

15 DAHEJ REGAS FACILITIES WITH AIR-HEATER

16 SATELLITE LNG HUB & LNG BY ROAD LNG BY ROAD VAPORISATION FACILITIES SATELLITE HUB

17 KOCHI TERMINAL KOCHI TERMINAL KOCHI TERMINAL

18 KOCHI LNG TERMINAL LNG Terminal located in Special Economic Zone with Codeveloper status Capacity 5.0 mmtpa Tied up 1.44 mmtpa LNG from Exxon Mobil s Gorgon Project Two Storage Tanks constructed by IHI, Japan Regasification Facilities constructed by CTCI, Taiwan Marine Facilities constructed by Afcons Infrastructure Ltd Plant Mechanically completed, scheduled commissioning by 3 rd Qtr, 2013

19 LNG STORAGE TANKS

20 REGAS AREA

21 KOCHI - MARINE FACILITIES

22 NEW THIRD TERMINAL AT EAST COAST Proposed Capacity: 5 mmtpa Location: Gangavaram, Andhra Pradesh Regasification Scheme: Indirect Fluid using ambient air heater DFR completed FEED completed Estimated Project cost: : US$ 900 Million Gangavaram

23 STATUS OF GANGAVARAM TERMINAL LNG terminal to be developed as SPV with GPL as partner Environment clearance expected by July mmtpa onshore terminal proposed to be commissioned in 2016 Facilities to include 2 storage tanks, marine & regasification facilities To commence earlier supplies, FSRU option being examined through which supplies can commence early 2015 Understanding reached for connectivity with East West & Mallavaram-Bhilwara pipeline

24 GANGAVARAM Proposed land for plant sitting Proposed berth location

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 DFR for Kochi Power Plant under progress Business Model - majority of power to be sold on firm PPP basis 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 under the Brand name of

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 9.49% p.a. in terms

29 00 ales/ et Worth Service TBTU PERFORMANCE GRAPH 600 Sales/ Service TBTU Net Worth USD Million

30 ales/ et Worth Service USD TBTU Million PERFORMANCE GRAPH 7000 Turnover USD Million 250 PAT USD Million

31 00 50 SD per share FINANCIAL PARAMETERS Market Price USD Current Earning Per Share (USD) Year EPS (USD) P/E D/E

32 FINANCING STRUCTURE (US$ MILLIONS) Particulars Dahej Terminal Kochi Terminal 2nd Berth Dahej Dahej Expansion Total Shareholders Fund Equity Capital/ Internal Accruals/ Premium Debt Total Means of Finance The existing debt equity ratio is 0.68:1; providing enough room to leverage Balance Sheet for new projects in future.

33 PERFORMANCE BASED ON EMPLOYEE PARAMETERS No. of Employees Turnover/ employees (USD Million) Profit Before Tax / Employee (USD Million) Employee Remuneration cost (as % of Profit) 3.22% 2.83% 3.37% Total Number of Employees as on 31 st March 2013: 397 Corporate: 86 Professional : 93 Dahej :203 Technical : 280 Kochi :108 Office support: 24 Training & Development : 6.9 Mandays / Employee Average Age: 34.1years (47% employee in years of age) 77% are Technical & 23% professional Average years of association of employees with Company 4.8years Attrition rate : 4.53%

34 A JOURNEY TOWARDS SUCCESS Ratings & Ranking: Rated AA+ by Fitch and ICRA rating Agencies 35th rank in Financial Express th rank in Fortune India th Largest Company & 301th most Profitable Company in Plimsoll Global Analysis on Global Crude Oil & Gas Extraction Industry ranking R a n k Financial EXpress (FE 500) FY FY R a n k Fortune India FY FY

35 CSR PARTNERING WITH COMMUNITY DAHEJ Participative community development programmes with GIDC in 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/solar street lights. Preventive and Social medicine aids (includes primary health centre & ambulance). Education and Employment generation programs Construction of School, Scholarship & Vocational Training. 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. Participation in Govt. Devp. Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre Massive mangrove plantation to cover 1000 hectares by in consultation with Gujarat Ecology Commission/Forest Department.

36 CSR PARTNERING WITH COMMUNITY - KOCHI Developing Infrastructure Facilities for displaced persons at RMP Todu Canal Kalamukhi Junction Rehabilitation Area in Puthuvypeen Renovation of Building of UPES Government School, Puthuvypeen Sponsored the distribution of books and other study material to nearly 70 schools of the area benefitting 22,000 students. Conducted Eye Screening & Cataract Operation & Dental Camp for Puthuvypeen & neighboring villages Sponsoring of local events like boat race, cultural and sports events in schools Sponsor purchase of school bus for Kerala Blind School.

37 Thank You