CORPORATE PROFILE PETRONET LNG LIMITED MAY, 2013
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 % 2011 % Oil 3901 37 4059 33 Gas 2501 24 2954 24 Coal 2982 28 3724 30 Nuclear 627 6 599 5 Hydro 662 6 791 6 Renewables 84 1 195 2 Total 10537 100 12322 100 Source : BP Statistical Review-June 2012 6% 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
PRIMARY ENERGY CONSUMPTION (mtoe) - INDIA Fuel 2005 % 2011 % Oil 120 33 162 29 6% 1% 1% 33% Year 2005 Oil Gas Coal Gas 32 9 55 10 50% 9% Nuclear Hydro Coal 184 51 296 53 Renewables Nuclear 4 1 7 1 Hydro 22 6 30 5 Renewables 2.0 1 9.0 2 1% 5% 2% 29% Year 2011 Oil Gas Coal Total 364 100 559 100 Source : BP Statistical Review-June 2012 53% 10% Nuclear Hydro Renewables
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
CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO 1000 900 800 Demand (mmscmd) (bcf/day) Domestic Supply (22.2) 625 (25.3) 713 700 600 500 400 300 200 100 0 (15.7) 442 (12.7) 358 (10.9) (9.6) 307 (8.0) (8.8) 272 248 227 211.79 231.42 156.7 172.2 101.1 102.5 111.26 120.63 (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
SECTOR WISE PROJECTED GAS DEMAND 400 350 300 250 200 150 100 50 0 Gas Demand (mmscmd) 2012-13 2013-14 2014-15 2015-16 2016-17 2019-20 2026-27 2029-30 Source : Vision 2030, Natural Gas Infrastructure in India Power Fertilizer City Gas Industrial Petchem/Refine ries/internal Cons. 2012-13 2013-14 2014-15 2015-16 2016-17 2019-20 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/Refineries/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
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- 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 2030. PLL analysis 8
INDIA S GAS INFRASTRUCTURE Existing P/L Network : 11900 KMS (283 mmscmd) Proposed additional P/L Network : 14000 KMS (540 mmscmd) by 2016-17 Dahej LNG Terminal Gangavaram LNG Terminal Hazira LNG Terminal Dabhol LNG Terminal Kochi LNG Terminal
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
PETRONET LNG LIMITED Incorporated on April 2, 1998 Authorized Capital US$240 Million, Paid up capital US$150 Million Commencement of Commercial Operations - April, 2004 Equity 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) 10% held by GDFI (part of GDF SUEZ) 5.20% ADB
TOWARDS THE VISION Vision To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international presence 6000 5000 4000 3000 2000 1000 0 Revenue grew 27% EBITDA growth 19% 1102 Revenue 1311 EBIDTA 1686 2130 137 184 196 189 (All Values in US$ Million 2639 4539 5827 257 383 441 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
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 2500 loadings/ yr. LNG Cargoes unloaded : 1000 + cargoes Further capacity expansion to 15 mmtpa Second Jetty : Under Construction Regas & Storage Capacity : DFR, FEED Completed EPC Award : November, 2013
DAHEJ LNG STORAGE TANKS
DAHEJ REGAS FACILITIES WITH AIR-HEATER
SATELLITE LNG HUB & LNG BY ROAD LNG BY ROAD VAPORISATION FACILITIES SATELLITE HUB
KOCHI TERMINAL KOCHI TERMINAL KOCHI TERMINAL
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
LNG STORAGE TANKS
REGAS AREA
KOCHI - MARINE FACILITIES
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
STATUS OF GANGAVARAM TERMINAL LNG terminal to be developed as SPV with GPL as partner Environment clearance expected by July 2013 5 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
GANGAVARAM Proposed land for plant sitting Proposed berth location
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
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
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
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
00 ales/ et Worth Service TBTU PERFORMANCE GRAPH 600 Sales/ Service TBTU 548 524 900 Net Worth USD Million 824 800 500 440 700 704 400 300 247 290 322 321 400 600 500 400 324 397 447 536 200 100 125 300 200 100 176 214 255 0 0
ales/ et Worth Service USD TBTU Million PERFORMANCE GRAPH 7000 Turnover USD Million 250 PAT USD Million 6000 5827 200 212 213 5000 4539 4000 150 124 3000 2000 1000 389 767 1102 1311 1686 2130 2639 100 50 39 63 95 104 81 0 0-6 -50
00 50 SD per share 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 2.86 1.64 1.24 1.46 0.92 0.94 0.80 0.54 2004 2005 2006 2007 2008 2009 2010 2011 2012 Current Earning Per Share (USD) 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
FINANCING STRUCTURE (US$ MILLIONS) Particulars Dahej Terminal Kochi Terminal 2nd Berth Dahej Dahej Expansion Total Shareholders Fund Equity Capital/ Internal Accruals/ Premium 203 267 60 186 716 Debt 487 623 120 434 1664 Total Means of Finance 690 890 180 620 2380 The existing debt equity ratio is 0.68:1; providing enough room to leverage Balance Sheet for new projects in future.
PERFORMANCE BASED ON EMPLOYEE PARAMETERS 2012-13 2011-12 2010-11 No. of Employees 397 309 276 Turnover/ employees (USD Million) 14.65 14.80 9.76 Profit Before Tax / Employee (USD Million) 0.8 1.02 0.67 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 31-40 years of age) 77% are Technical & 23% professional Average years of association of employees with Company 4.8years Attrition rate 2012-13 : 4.53%
A JOURNEY TOWARDS SUCCESS Ratings & Ranking: Rated AA+ by Fitch and ICRA rating Agencies 35th rank in Financial Express 500 46 th rank in Fortune India 500 150th Largest Company & 301th most Profitable Company in Plimsoll Global Analysis on Global Crude Oil & Gas Extraction Industry ranking R a n k 0 10 20 30 40 50 60 70 80 Financial EXpress (FE 500) 35 75 FY 2010-11 FY 2011-12 R a n k 40 42 44 46 48 50 52 54 56 58 60 Fortune India 500 46 58 FY 2010-11 FY 2011-12
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 2015-16 in consultation with Gujarat Ecology Commission/Forest Department.
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.
Thank You