CORPORATE PROFILE PETRONET LNG LIMITED, June, 2018
DISCLAIMER Any information contained in this presentation should not be taken as being a representation about facts and projection or promise of performance, whether financial, operational or otherwise. Nothing contained in this presentation should be considered an invitation to transact in our securities or an offer of our securities. This presentation is made specifically for purposes of the meeting in which this is being presented and not for any other purpose. You may determine that such information may be regarded as forward-looking but we make no assurance about any projection, extrapolation or interpretation of the same that you may make. The information contained herein should be treated with utmost confidentiality and not used for any purpose. You are advised to obtain legal advice on the nature and character of the information and on implications of being in possession of the same.
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 Fuel 2007 % 2017 % Oil 3952 36 4622 34 29% 0% 5% 6% 36% Year 2007 Oil Gas Coal Gas 2638 24 3156 23 Coal 3178 29 3731 28 Nuclear 622 6 596 4 24% 4% 4% 7% Nuclear Hydro Renewables Year 2017 Hydro 709 6 919 7 34% Oil Gas Renewables - - 488 4 28% Coal Nuclear Total 11099 100 13512 100 23% Hydro Renewables Source : BP Statistical Review-June 2018 4
PRIMARY ENERGY CONSUMPTION (mtoe) INDIA Fuel 2007 % 2017 % 1% 7% Year 2007 Oil 128 32 222 29 32% Oil Gas Gas 36 9 47 7 Coal 208 51 424 56 51% 9% Coal Nuclear Hydro Nuclear 4 1 8 1 1% 4% 3% Hydro 28 7 31 4 30% Year 2017 Oil Renewables - - 22 3 Total 404 100 754 100 56% 6% Gas Coal Nuclear Hydro Source : BP Statistical Review-June 2018 Renewables 5
INDIA A MAJOR GAS/LNG CONSUMER 14 th largest gas consumer 54 bcm (~142 mmscmd) 4th largest LNG importer 26 bcm (~68 mmscmd) Economy growing at CAGR of about 6-7% with similar growth in Energy Consumption Government aims to significantly increase share of Natural Gas in Indian Energy basket to in coming years 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 (mmscmd) 350.00 Power 300.00 Sector 2016-17 2019-20 2026-27 Power 157 202 309 250.00 200.00 150.00 Fertilizer City Gas Fertilizer 97 106 110 City Gas 22 36 68 Industrial 27 35 52 100.00 50.00 0.00 2016-17 2019-20 2026-27 Industrial Petchem/ Refineries / Interal Cons. Source : BP Statistical Review June 2018 & Vision 2030, Natural Gas Infrastructure in India Petchem/ Refineries / Internal Cons. 47 54 103 Sponge/ Iron/ Steel 8 10 12 Total Realistic Demand 358 443 654 6
CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO 1000 (mmscmd) 900 Demand Domestic Supply 713 800 625 700 600 500 400 300 358 442 200 100 157 172 212 231 0 2016-17 2019-20 2026-27 2029-30 Large demand for gas but extremely price sensitive Source : Vision 2030, Natural Gas Infrastructure in India 7
LNG TERMINALS & GAS PIPELINES No. TERMINAL DEVELOPERS CAPACITY (MMTPA) Existing Terminal 1 Dahej Petronet LNG Limited 15.0 2 Hazira Royal Dutch Shell, Total Gaz Electricite 5.0 3 Dabhol GAIL,NTPC 5.0 4 Kochi Petronet LNG Limited 5.0 TOTAL EXISTING 30.0 UNDER CONSTRUCTION 1A Dahej Expansion Phase III B Petronet LNG Limited 2.5 5 Mundra GSPC, Adani 5.0 6 Ennore Indian Oil Corp, TIDCO 5.0 TOTAL UNDER-CONSTRUCTION 12.5 PLANNED 7 Kakinada APGDC, 2.5 8 Dhamra Adani 5.0 9 Jafrabad (FSRU) Swan, Exmar 5.0 10 Jaigarh H Energy 2.5 TOTAL PLANNED 15.0 PROPOSED 11 Gangavaram Petronet LNG Limited 5.0 12 Kolkata Port H Energy 2.5 13 Chhara HPCL & Shapoorji Pallonji 5.0 14 Krishnapatnam LNG Bharat 2.5 TOTAL PROPOSED GRAND TOTAL 15.0 72.5 Chhara Mundra Jafrabad Jaigarh Existing P/L Network : 16200 KMS (430 MMSCMD) Proposed additional P/L Network : 15000 KMS Under Construction : 8000 KMS (400 MMSCMD) Ennore Kakinada Krishnapattam Dhamra Kolkata
PETRONET LNG LIMITED Incorporated on April 2, 1998 Authorized Capital USD 500 Million Paid up capital USD 250 Million Commencement of Commercial Operations - April, 2004 Equity 50% Oil & Gas PSUs (BPCL, GAIL, IOC & ONGC) 50% Public / FIIs 12.5 Public & FIIs 50 12.5 12.5 12.5 9
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 0 Revenue growth 19% EBITDA growth 20% 2130 2639 189 257 4539 383 5827 (USD Million) 6291 408 264 6583 4522 4103 266 293 490 5100 605 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 - Solid cargo port at Dahej - Small Scale LNG - Exploring business opportunities in neighboring countries - City-gas distribution/ direct marketing Maintain highest standards of business ethics 10
DAHEJ LNG TERMINAL Located at Dahej in Gujarat in the Gulf of Cambay on the West Coast of India. Commencement of Operations in 2004 Capacity (mmtpa) 2004 5.0 2009 10.0 2016 15.0 LNG Cargoes unloaded : Around 2000 8.50 mmtpa LNG imported from Qatar under long term contracts Terminal meets almost 40% of India s gas requirement and around 80% of LNG imports in the country Truck Loading facility can handle 3000 loadings/ yr. Offering tolling services to Offtakers & Bulk customers Expanded Capacity contracted with GAIL, GSPC, IOCL & BPCL For further expansion to 17.5 MMTPA contract for LNG Regasification facility awarded Time Charter Vessels Disha, Raahi and Aseem 11
DAHEJ PLANT FACILITY 12
DAHEJ SECOND JETTY
DAHEJ EXPANSION PHASE IIIA
DAHEJ EXPANSION PHASE IIIB1 STV Area Pipe Rack Pipe rack Pipe Rack 15 MMTPA FACILITY AT DAHEJ NAME OF FACILITY? Air Heater
KOCHI LNG TERMINAL Terminal commissioned in September, 2013 with the nameplate capacity of 5.0 mmtpa. For effective utilization of Kochi terminal in absence of pipeline, ancillary services such as storage & reloading, cool down, bunkering options explored Kochi Terminal has so far received 18 Cargoes received, 6 Reload Cargoes and provided 2 cool down and 2 bunkering services. Truck loading facility supply commenced to HLL, Kochi and so far supplied around 1050 trucks loaded. Long term contract of 1.44 mmtpa LNG from Exxon Mobil s Gorgon Project (Australia) supply commenced. PLL is aggressively pursing construction of pipeline with GAIL.
KOCHI FACILITY 17
KOCHI TRUCK LOADING
KOCHI PIPELINE PLL is aggressively pursing construction of pipeline with GAIL. All sections Kochi Koottand and Perole- Kodalamuguru- Mangaluru awarded. The connectivity to Mangalore will ensure up to 40% of capacity utilization at Kochi Terminal
NEW BUSINESS INITIATIVES Launch of 1 st LNG fueled bus in Kerala on 8th November 2016 PLL is part of the team formed by PESO for formation of rules and standards for LNG dispensing stations Ministry of Road Transport & Highways have incorporated LNG as an automotive fuel in Central Motor Vehicle Rules Exploring opportunities of utilizing LNG as automotive fuel for heavy duty trucks by setting up LNG dispensing stations on major highways as marine fuel to LNG powered inland waterway barges In discussion with Indian Railway authorities to introduce LNG powered locomotive in India.
NEW BUSINESS INITIATIVES LNG regasification terminals / FSRUs Initiatives being explored in : Sri Lanka Bangladesh Andaman & Nicobar Islands Mauritius
PERFORMANCE GRAPH 1000 800 600 400 200 400 Sales/ Service TBTU 548 524 494 533 581 440 728 847 1800 1600 1400 1200 1000 800 600 400 330 373 Networth USD Million 1349 1063 948 832 742 587 447 1620 0 7000 6000 5000 4000 3000 2000 1000 0 Turnover USD Million 6291 6583 5827 5100 4539 4522 4103 2130 2639 200 0 400 350 300 250 200 150 100 50 0 81 124 PAT USD Million 212 213 147 152 119 284 346
PERFORMANCE BASED ON EMPLOYEE PARAMETERS 2017-18 2016-17 2015-16 2014-15 Number of Employees 486 478 466 461 Turnover/ employees (USD Million) 9.4 8.03 9.73 14.28 Profit Before Tax / Employee (USD Million) 0.93 0.75 0.43 0.35 Profit after Tax/employee(USD Million) 0.64 0.53 0.33 0.32 Employee Benefit Expenses (USD Million) 13.5 11.38 12.46 9.51 Employee Remuneration cost* (as % of Profit) 4.38% 4.33% 6.11% 6.46% A Snapshot of our Human Capital Human Capital Skill Set Others Location Male Female Delhi 80 25 Professional : 236 Tech: 185 Non Tech:51 Dahej 247 3 Technician/Operators: 179 Kochi 128 3 Office Support 46 (Receptionist/Assistant) Support Staff: 25 (Attendant/Driver/Caretaker) USD conversion rate-67.5 Attrition rate: 2017-18 : 2.26% Learning & Development : 5.32Mandays / Employee 76% of the professionals are of Technical background as opposed to 24% Non Technical Average Age:35.87 years (more than 50% employees in 30-40 years age) Average years of association of employees with Company: 7.45 years 23
RATING AND RECOGNITION Ratings & Ranking: Moody s International Rating Baa2 (at par with India s Sovereign Rating) (2018) Rated AAA+ by CRISIL, India Ratings & ICRA (2018) 57 th rank Fortune India 500 (2017) 57 th rank in ET 500 (2017) 26 th rank in BS 1000 (2016) 26 th rank in FE 500 (2015) Certificate of Appreciation from US Environment Protection Agency for maintaining low methane emissions
CSR PARTNERING WITH COMMUNITY Healthcare and Sanitation Casualty Complex and Trauma Care Centre at Thrikkakara Municipal Hospital. Eye screening & cataract operational camps conducted in Delhi, Dahej, Kochi, and U.P. Organised Swachh Bharat Pakhwada activities at Delhi, Dahej and Kochi to mobilize and sensitize the community on Washing, Hygiene and Sanitation habits. Under Swachh Bharat Abhiyan constructed Toilets Blocks in Gujarat, Kochi and Assam Contribution in Ganga Surface & Ghats Cleaning Programme undertaken by Government Education and Empowerment Petronet Super 30 in collaboration with Indian Army & CSRL supporting underprivileged & brilliant students of Kashmir for 11 months Residential coaching for admission to IITs/NITs. Supported Meritorious students of project Unarvu - Akshaya Programme at Kalamassery Organised IL&FS residential/ non residential skill training Programmes in Gujarat. In partnership with Alphonza Institution, Kochi provided free Engineering/Medical entrance coaching to under privileged and brilliant students under Project Velicham. \ Skill development initiative of Tribal girls with DRI Balrampur. Community Development Sponsored installation of PET waste recycling machine in Vibrant Gujarat venue. Massive mangrove plantation in for the protection of ecosystem in Gujarat and Kerala Developed roads, storm, water drains, solar lights etc. in partnership with local authorities Construction & rehabilitation of Pacca houses for tribal and migrant villagers in Dahej 25
Thank You 26