CORPORATE PROFILE PETRONET LNG LIMITED May, 2014
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
PRIMARY ENERGY CONSUMPTION (mtoe) - WORLD Year 2005 Fuel 2005 % 2012 % 6% 6% 1% Oil Oil 3901 36 4130 33 Gas 2501 23 2987 24 28% 36% Gas Coal Nuclear Hydro Coal 2982 28 3730 30 23% Renewables Nuclear 627 6 560 4 Year 2012 Hydro 662 6 831 7 4% 7% 2% Oil Gas Renewable s 84 1 237 2 33% Coal Total 10708 100 12477 100 30% Nuclear Hydro Source : BP Statistical Review-June 2013 24% Renewables
PRIMARY ENERGY CONSUMPTION (mtoe) - INDIA Fuel 2005 % 2012 % 6% 1% 1% Year 2005 Oil Oil 120 33 172 31 33% Gas Coal Gas 32 9 49 9 Coal 184 50 298 53 50% 9% Nuclear Hydro Renewables Nuclear 4 1 7.5 1 Hydro 22 6 26 4 4% Year 2012 2% 1% Oil Renewables 2.0 1 11 2 31% Gas Coal Total 367 100 563 100 53% 9% Nuclear Source : BP Statistical Review-June 2013 Hydro Renewables
INDIA A MAJOR GAS/LNG CONSUMER 13th largest gas consumer 55 bcm (~149 mmscmd) 4th largest LNG importer 20.5 bcm (~55 mmscmd) Economy growing at CAGR of about 6% with similar growth in Energy Consumption Share of Natural Gas in Indian Energy basket to increase from 9% to 20% by 2025 Despite increase in domestic gas production- dependency on imported gas to increase substantially Pipeline network- developing into a national grid- needs to grow faster, connecting new markets SECTOR WISE PROJECTED GAS DEMAND Gas Demand (mmscmd) 2012-13 2013-14 2014-15 2015-16 2016-17 2019-20 Source : Vision 2030, Natural Gas Infrastructure in India Power 86 104 122 139 157 202 Fertilizer 60 60 60 72 97 106 City Gas 15 16 17 18 22 36 Industrial 20 20 22 25 27 35 Petchem/Refinerie s/internal Consumption 38 40 42 44 47 54 Sponge Iron/Steel 7 8 8 8 8 10 Total Realistic Demand 227 248 272 307 358 443
CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO 1000 900 800 Demand Domestic Supply (mmscmd) (bcf/day) (22.2) 625 (25.3) 713 700 (15.7) 600 (12.7) 442 500 (10.9) 358 400 300 200 100 0 (9.6) 307 (8.0) (8.8) 272 248 227 211.79 231.42 156.7 172.2 102.5 111.26 120.63 101.1 (7.5) (8.2) (5.6) (6.1) (3.6) (3.6) (3.9) (4.3) 2012-13 2013-14 2014-15 2015-16 2016-17 2019-20 2026-27 2029-30 Source : Vision 2030, Natural Gas Infrastructure in India
LARGE DEMAND BUT SENSITIVE TO PRICE PETRONET ANALYSIS-2013 Petronet Analysis 2013 Gas demand and supply, 2016 mmscmd, at customer gate prices 143 40 85 53 32 228 72 47 275 28 303 119 147 55 358 202 103 156 156 156 156 2012 year end consumption 1 2 3 4 Price of $19-20/ mmbtu Low 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 2030. / PLL analysis
Existing P/L Network : 13000 KMS (330 MMSCMD) Proposed additional P/L Network : 13500 KMS (330 MMSCMD) by 2016-17 Mundra Ennore India Shipping Summit 2013
LNG IN INDIA Vision 2030, Natural Gas Infrastructure in India a GDP growth of 6% envisaged Current GDP growth of about 5-6% translate into overall energy demand growth at CAGR of 6-7% 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 23.0 mmtpa through 4 terminals & meeting more than 35% of total gas supply of the country
PETRONET LNG LIMITED Incorporated on April 2, 1998 Authorized Capital US$240 Million, Paid up capital US$150 Million Commencement of Commercial Operations - April, 2004 Equity 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) 10% held by GDFI (part of GDF SUEZ) 5.20% ADB Public 34.8% (IOCL, GAIL, BPCL, ONGC) 50% ADB 5.2% GDFI 10%
TOWARDS THE VISION Vision To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international presence 7000 6000 5000 4000 3000 2000 1000 Revenue grew 32% EBITDA growth 13% 0 1102 Revenue 1311 1686 EBIDTA 2130 137 184 196 189 (All Values in US$ Million) 2639 4539 5827 6291 257 383 408 264 Business Strategy Create and manage world-class LNG infrastructure Continue excellence in LNG business - Focus on higher capacity utilization and better operational efficiencies - Diversify LNG sources Diversify business - Wind Farm - City-gas distribution/ direct marketing - Air Separation Unit - Solid cargo port at Dahej Maintain highest standards of business ethics
DAHEJ LNG TERMINAL Located at West Coast, State of Gujarat in the Gulf of Cambay Commencement of Operations in 2004 Capacity (mmtpa) : 5.0 10.0 15.0 (2004) (2009) (2016) Truck Loading facility can handle 3000 loadings/ yr. LNG Cargoes unloaded : 1200+ cargoes Capacity expansion to 15 mmtpa Second Jetty : Commissioned in April., 2014 EPC Award : Storage Tanks Contract & Regas (Regas & Storage Capacity) Contract Awarded Scheduled Completion by November 2016 Expanded Capacity sold to GAIL, GSPC, IOCL & BPCL
DAHEJ PLANT FACILITY 13
DAHEJ SECOND JETTY
SATELLITE LNG HUB & LNG BY ROAD LNG BY ROAD VAPORISATION FACILITIES SATELLITE HUB
KOCHI PLANT OVERVIEW
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 Time Charter Party for 4 th vessel selected Kochi terminal commissioned in September, 2013 Truck loading facility available Currently operating at very low capacity in absence of pipelines connecting Bangalore & Mangalore markets
KOCHI - FACILITIES KOCHI - FACILITIES 18
KOCHI PIPELINES MANGALORE BANGALORE KASARGOD 1 6 KRISHNAGIRI KANNUR 2 PHASE-I CUSTOMERS KOZHIKODE a. FACT, Udyogmandal b. BSES, Kochi (Reliance KOOTTANAD Energy) c. BPCL, Kochi d. KSEB, Brahmapuram e. FACT-II, Kalamssery f. TCC States: 03 Districts:17 LEGEND CUSTOMER LOCATION KKBMPL PHASE I KKBMPL PHASE II KOCHI-KAYAMKULAM PL KOCHI 3 TIRUPPUR 5 FACT 1 FACT 2 b NTPC, KAYAMKULAM COIMBATORE c f d 4 ERODE SALEM PHASE-II CUSTOMERS IN KERALA 1. Kasargod power plant 2. Western India plywoods Kannur 3. Kottakkal Aryavaidya sala, Kottakal 4. Indsil & Precoat mills, Palghat 5. Apollo Tyres, Perambra 6. Cheemeni power plant, Kasargod No decision Delayed Completed 19
THIRD TERMINAL AT EAST COAST Proposed Capacity: 10 mmtpa Initial Capacity : 5 mmtpa Location: Gangavaram, Andhra Pradesh DFR, FEED and various other preproject activities completed along with obtaining of clearances Estd. Project cost: 1.2 Billion USD Gangavaram
GANGAVARAM TERMINAL LNG terminal to be developed as SPV with GPL as partner MOEF has accorded Environmental and CRZ Clearance 5 mmtpa onshore terminal proposed to be commissioned in 2017 Facilities to include 2 Storage tanks, marine & regasification facilities To commence earlier supplies, FSRU option being examined through which supplies can commence in 2016 Understanding reached for connectivity with East West & Mallavaram-Bhilwara pipelines
GANGAVARAM Proposed land for plant sitting Proposed berth location
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 & supplied RLNG to 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
PERFORMANCE GRAPH 600 Sales/ Service TBTU 548 524 900 Net Worth USD Million 824 831 500 440 494 800 700 704 400 300 200 100 125 247 290 322 321 400 600 500 400 300 200176 214 255 324 397 447 536 100 0 0 31.03.05 31.03.06 31.03.07 31.03.08 31.03.09 31.03.10 31.03.11 31.03.12 31.03.13 31.03.14
PERFORMANCE GRAPH 7000 Turnover USD Million 250 PAT USD Million 6000 5827 6291 200 212 213 5000 4539 150 4000 124 119 100 95 104 81 3000 2000 1000 389 767 1102 1311 1686 2130 2639 50 0-6 39 63 0 2004-052005-062006-072007-082008-092009-102010-11 2011-12 2012-13 2013-14 -50
FINANCIAL PARAMETERS 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Market Price USD 3.02 2.46 2.40 1.46 2.22 1.64 1.24 0.92 0.94 0.80 0.54 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Current Year EPS (USD) P/E D/E 2006-07 0.08 23.99 1.08 2007-08 0.13 11.15 0.97 2008-09 0.14 11.62 1.15 2009-10 0.11 5.75 1.12 2010-11 0.17 15.19 1.20 2011-12 0.28 9.29 0.93 2012-13 0.31 8.83 0.68 2013-14 0.16 14.75 0.66
PERFORMANCE BASED ON EMPLOYEE PARAMETERS 2013-14* 2012-13 2011-12 2010-11 No. of Employees 427 397 309 276 Turnover/ employees (USD Million) 14.73 14.65 14.80 9.76 Profit Before Tax / Employee (USD Million) Employee Remuneration cost* (as % of Profit) 0.27 0.8 1.02 0.67 6.55% 3.22% 2.83% 3.37% A Snapshot of Manpower Statistics Location Skill Set Others Corporate: 94 Professional : 93 Average Age: 34 (48% employees in 31-40 years age) Dahej : 202 Technical : 295 69% are Technical & 22% professional Kochi : 131 Office Support : 37 Average years of association of employees with Company 5 years Attrition rate: 2013-14 * : 9.36 % Training & Development : 6.89 Mandays / Employee * As on 31.03.2014
A JOURNEY TOWARDS SUCCESS PLL International Rating Moody's Investors Service Baa3 (sovereign) PLL Domestic Rating & Ranking AA+ AA+ Ratings & Ranking: Moody International Rating Baa3 Rated AA+ by Fitch and ICRA rating Agencies 36 th rank in ET (2012-13) 37th rank Fortune India 500 (2012-13) 2012-13 2012-13 2012-13 2012-13 2012-13 37 29 36 109 27 150th Largest Company & 301th most Profitable Company in Plimsoll Global Analysis on Global Crude Oil & Gas Extraction Industry ranking Letter of Appreciation for maintaining low methane emission footprint at Dahej facility from United State Environmental Protection Agency
CSR PARTNERING WITH COMMUNITY DAHEJ Participative community development programmes with State Govt in Luvara & Lakhigam villages 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 Sponsored laboratory to facilitate science stream education in the nearby school, Dahej. 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 2015-16 in consultation with Gujarat Ecology Commission/Forest Department. Constructing of canteen at Government Hospital, Bharuch.
CSR PARTNERING WITH COMMUNITY - KOCHI Developing Infrastructure Facilities for displaced persons at RMP Todu Canal Kalamukhi Junction Rehabilitation Area in 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. Concreting & metalling of roads, side protection & repair/construction of culverts, footpaths in Puthuvypeen village Installation of Solar powered high mask lights in Puthuvypeen
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