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CORPORATE PROFILE
PETRONET LNG LIMITEDMarch, 2012
OVERVIEWOVERVIEW
Global & India’s Primary Energy ConsumptionScenario
India’s Gas Scenario, Infrastructure
Role of LNG in India
About Petronet’sAbout Petronet’s
Dahej & Kochi Terminals
New Initiatives
Performance
PRIMARY ENERGY PER CAPITA CONSUMPTIONPRIMARY ENERGY PER CAPITA CONSUMPTION
Source : BP Statistical Review June 2011
PRIMARY ENERGY CONSUMPTION (MTOE)PRIMARY ENERGY CONSUMPTION (MTOE) -- WORLDWORLD
Fuel 2005 % 2010 %
Oil 3837 36 4028 34
Gas 2475 24 2858 24
Coal 2930 28 3556 30
36%
24%
28%
6%6%
Oil
Gas
coal
Nuclear
Hydro
Renewables
Year 2005
Source : BP Statistical Review-June 2011
Coal 2930 28 3556 30
Nuclear 627 6 626 5
Hydro 669 6 776 6
Renewables - - 159 1
Total 10537 100 12002 100
24%
34%
24%
30%
5%6%
1%
Oil
Gas
coal
Nuclear
Hydro
Renewables
Year 2010
PRIMARY ENERGY CONSUMPTION (MTOE)PRIMARY ENERGY CONSUMPTION (MTOE) -- INDIAINDIA
Fuel 2005 % 2010 %
Oil 116 30 156 29
Gas 33 8 56 11
Coal 213 56 278 53
Year 2005
30%
8%56%
1%
5%Oil
Gas
coal
Nuclear
Hydro
Renewables
Nuclear 4 1 5 1
Hydro 22 5 25 5
Renewables - - 5 1
Total 387 100 524 100
Year 2010
Source : BP Statistical Review-June 2011
29%
11%53%
1% 5% 1%
Oil
Gas
coal
Nuclear
Hydro
Renewables
INDIAINDIA –– A MAJOR GAS/LNG CONSUMERA 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 similarincrease in Energy Consumption
Share of Natural Gas in Indian Energy basket to Share of Natural Gas in Indian Energy basket toincrease from 11% to 20% by 2025
Despite increase in domestic gas production-dependency on imported gas to increase substantially
Pipeline network- developing into a national grid- needsto grow faster, connecting new markets
CURRENT GAS DEMAND &CURRENT GAS DEMAND &DOMESTIC SUPPLY SCENARIODOMESTIC SUPPLY SCENARIO
305
385434
488
550
300
400
500
600
Demand Supply
(10.8)
(13.6)(15.3)
(17.2)
(19.4)
(Bcf/day)(MMSCMD)
Demand – Mercados Analysis , 2011Supply – Directorate General of Hydrocarbons (DGH)
243
305
155192
198 203240
215
0
100
200
300
2011-12 2012-13 2013-14 2014-15 2015-16 2019-20
(8.6)
(10.8)
(5.5) (6.8)
(7.0) (7.2)
(8.5) (7.6)
SECTOR WISE PROJECTED GAS DEMANDSECTOR WISE PROJECTED GAS DEMAND
Gas Demand (MMSCMD)
Source : Mercados Analysis, 2011
311
388
27659
17125
19
230
Gas demand and supply, 2015Mmscmd, at customer gate prices
LARGE DEMAND BUT SENSITIVE TO PRICELARGE DEMAND BUT SENSITIVE TO PRICE
SOURCE: Indianpetro; DGH; Company annual reports; Expert interviews; McKinsey analysis
High Potentialdemand,2015
Price of $8-10 mmbtu
Medium Price of $11-12/ mmbtu
Price of $13-14/ mmbtu
Price of $16-17/ mmbtu
Low2010 yearendconsumption
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
21 3 4
Imports
Domestic supplies
Sectors withdemand
▪ Industries▪ CNG
transport
▪ Refineries▪ Industries▪ Power
cogen
▪ Peakingpowerplants
▪ Baseloadpower
▪ New fertilizerplants
Prices at Crude of $ 100/Bbl
LNG IN INDIALNG 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 ofGiven 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
PETRONET LNG LIMITEDPETRONET LNG LIMITED
Incorporated on April 2, 1998
Authorized Capital Rs. 1200 crores (USD 240 Million), Paid up capital Rs. 750
crores (USD 150 Million)
Commencement of Commercial Operations - April, 2004
Equity Equity
50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL ) 10% held by GDFI (part of GDF SUEZ) 5.20% ADB
VisionVision
To be a key energy provider to the nationby leveraging unique position in the LNGvalue-chain with international presence
Revenue grew 31.5%EBITDA growth 23%
TOWARDS THE VISIONTOWARDS THE VISION
Create and manage worldCreate and manage world--class LNGclass LNGinfrastructureinfrastructure
Pursue synergistic businessPursue synergistic businessopportunitiesopportunities
Continue excellence in LNG businessContinue excellence in LNG business
Business StrategyBusiness Strategy
18000 16320
(All Values in INR)
Continue excellence in LNG businessContinue excellence in LNG business
- Focus on higher capacity utilizationand better operational efficiencies
- Diversify LNG sources
Diversify businessDiversify business
- Gas-based power generation
- Venture into city-gas distribution/direct marketing to far-flungconsumers
- Solid cargo port at Dahej
Maintain highest standards ofMaintain highest standards ofbusiness ethicsbusiness ethics
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12(9
Months)
55096555
8429
10649
13197
16320
685 920 978 944 12841452
Revenue EBIDTA
VisionVision
To be a key energy provider to the nationby leveraging unique position in the LNGvalue-chain with international presence
Revenue grew 31.5%EBITDA growth 23%
TOWARDS THE VISIONTOWARDS THE VISION
Create and manage worldCreate and manage world--class LNGclass LNGinfrastructureinfrastructure
Pursue synergistic businessPursue synergistic businessopportunitiesopportunities
Continue excellence in LNG businessContinue excellence in LNG business
Business StrategyBusiness Strategy
(All Values in USD)
3500 3264 Continue excellence in LNG businessContinue excellence in LNG business
- Focus on higher capacity utilizationand better operational efficiencies
- Diversify LNG sources
Diversify businessDiversify business
- Gas-based power generation
- Venture into city-gas distribution/direct marketing to far-flungconsumers
- Solid cargo port at Dahej
Maintain highest standards ofMaintain highest standards ofbusiness ethicsbusiness ethics
0
500
1000
1500
2000
2500
3000
3500
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12(9
Months)
11021311
1686
2130
2639
3264
137 184 196 189257 290
Revenue EBIDTA
DAHEJ LNG TERMINALDAHEJ LNG TERMINAL
Located at West Coast, State of Gujarat in the Gulf ofCambay
Commencement of Operations in 2004
Capacity (Mmtpa) : 5.0 10.0
Truck Loading facility can handle 2500 loadings/ yr.
LNG Cargoes unloaded : 845 (March 12, 2012) LNG Cargoes unloaded : 845 (March 12, 2012)
Further capacity expansion to 15 Mmtpa
Second Jetty : Under Construction
Regas & Storage Capacity : DFR Completed
Pre Project Activities started
DAHEJ LNG STORAGE TANKSDAHEJ LNG STORAGE TANKS
DAHEJ REGAS FACILITIES WITH AIRDAHEJ REGAS FACILITIES WITH AIR--HEATERHEATER
LNG TRUCK LODING FACILITIESLNG TRUCK LODING FACILITIES –– DAHEJDAHEJ
VAPORISATIONVAPORISATIONFACILITIESFACILITIES
WEIGH BRIDGEWEIGH BRIDGE
LNG Terminal located in Special Economic Zone with Co-developer status
Capacity 2.5 5.0 Mmtpa
Tied up 1.44 MMTPA LNG from Exxon Mobil’s Gorgon Project
Two Storage Tanks being constructed by IHI, Japan
KOCHI LNG TERMINALKOCHI LNG TERMINAL
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%, scheduledcommissioning by end 3rd Qtr. , 2012
KOCHI TERMINALKOCHI TERMINAL
21
KOCHIKOCHI –– STORAGE TANKSTORAGE TANK
KOCHIKOCHI -- MARINE FACILITIESMARINE FACILITIES
NEW THIRD TERMINAL AT EAST COASTNEW THIRD TERMINAL AT EAST COAST
Proposed Capacity: 5 Mmtpa
Location: Gangavaram, AndhraPradesh
Regasification Scheme: IndirectFluid using ambient air heaterFluid using ambient air heater
PFR Completed
DFR under preparation
Estimated Project cost: Rs.4500Crores (USD 900 Million)
Gangavaram
INTEGRATED POWER PLANT AT DAHEJ & KOCHIINTEGRATED 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 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
DIRECT MARKETINGDIRECT MARKETING
Petronet exploring opportunities to supply LNG to Coastalarea consumers through small LNG Vessels in India andneighbouring countries
Direct Marketing by focusing on the following areas:
Signed HOAs with bulk end consumers in Power, Refineries& Fertilizers Sectors& Fertilizers Sectors
LNG/LCNG supplies through Trucks, to LNG hubs, SatelliteStations at customer’s premises in regions not serviced bypipelines
BUSINESS MODELBUSINESS 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 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
FINANCINGFINANCING
Very strong parentage and a robust business model
Financing cost is amongst the lowest in the Industry
With the use of effective hedging techniques, theCompany has been able to maintain a low cost ofCompany has been able to maintain a low cost ofdebt service even in such turbulent times
The average cost of debt is 9.06% p.a. in rupeeterms
PERFORMANCE GRAPHPERFORMANCE GRAPH
290
322 321
400
440
413
300
350
400
450
500
Sales/ Service TBTU
2682
3493
2500
3000
3500
4000
Net Worth (Rs. Crores)
125
247
290
0
50
100
150
200
250
300
8791072
1274
1619
1983
2236
0
500
1000
1500
2000
2500
PERFORMANCE GRAPHPERFORMANCE GRAPH
290
322 321
400
440
413
300
350
400
450
500
Sales/ Service TBTU
447
536
699
500
600
700
800
Net Worth USD Million
125
247
290
0
50
100
150
200
250
300
176214
255
324
397
447
0
100
200
300
400
PERFORMANCE GRAPHPERFORMANCE GRAPH
10649
13197
16320
12000
14000
16000
18000
Turnover Rs. Crores
475518
620
812
500
600
700
800
900
PAT Rs. Crores
1945
3837
5509
6555
8429
0
2000
4000
6000
8000
10000
-28
195
313
475
405
-100
0
100
200
300
400
500
PERFORMANCE GRAPHPERFORMANCE GRAPH
95104
124
162
100
120
140
160
180
PAT USD Million
2130
2639
3264
2000
2500
3000
3500
Turnover USD Million
-6
39
63
95
81
-20
0
20
40
60
80
100
389
767
1102
1311
1686
0
500
1000
1500
2000
PERFORMANCE BASED ON EMPLOYEE PARAMETERSPERFORMANCE BASED ON EMPLOYEE PARAMETERS
2010-11 2009-10 2008-09
No. of Employees 276 273 256
Turnover/ employees (USD Million) 9.76 7.96 6.72
Profit Before Tax / Employee (USD Million) 0.67 0.45 0.62
Employee Remuneration cost as % of Profit) 3.37% 3.41% 2.53%
Total no. of employees : 296
Training & Development : 6 Mandays / Employee
Average Age: 34 years (58% employee in 31-40 years of age)
63% of employees are Graduates or Post Graduates
Average years of association of employees with Company 5 years
Attrition rate 2010-11 : 4.34%
Note:Exchange rate @ Rs49/- per USD
FINANCIAL PARAMETERSFINANCIAL PARAMETERS
Earning Per Share (INR)
4.17
6.336.91
5.39
8.27
10.83
4.00
6.00
8.00
10.00
12.00
Year EPS (INR) P/E D/E Ratio2006-07 4.17 23.99 1.082007-08 6.33 11.15 0.972008-09 6.91 11.62 1.152009-10 5.39 5.75 1.122010-11 8.26 15.19 1.20
2011-12 (9 Months) 10.83 - 1.03
0.00
2.00
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12(9 months)
FINANCIAL PARAMETERSFINANCIAL PARAMETERS
Earning Per Share (USD)
0.08
0.130.14
0.11
0.17
0.22
0.05
0.10
0.15
0.20
0.25
0.00
0.05
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12(9 months)
Year EPS (USD) P/E D/E Ratio2006-07 0.08 23.99 1.082007-08 0.13 11.15 0.972008-09 0.14 11.62 1.152009-10 0.11 5.75 1.122010-11 0.17 15.19 1.20
2011-12 (9 months) 0.22 - 1.03
As on Mar, 31 2004 2005 2006 2007 2008 2009 2010 2011 Current
Mkt. Price INR 27 46 62 47 73 40 82 123 162.60
SHAREHOLDERS WEALTH CREATIONSHAREHOLDERS WEALTH CREATION
162.60160
180
Mkt Price (INR)
27
4662
47
73
40
82
123
0
20
40
60
80
100
120
140
160
2004 2005 2006 2007 2008 2009 2010 2011 Current
SHAREHOLDERS WEALTH CREATIONSHAREHOLDERS WEALTH CREATION
3.25
3.00
3.50
Mkt Price USD
As onMar, 31 2004 2005 2006 2007 2008 2009 2010 2011 Current
USD PerShare 0.54 0.92 1.24 0.94 1.46 0.80 1.64 2.46 3.25
0.54
0.92
1.24
0.94
1.46
0.80
1.64
2.46
0.00
0.50
1.00
1.50
2.00
2.50
2004 2005 2006 2007 2008 2009 2010 2011 Current
FINANCING STRUCTUREFINANCING STRUCTURE
(INR CRORES)(INR CRORES)
Particulars DahejTerminal
KochiTerminal
2nd BerthDahej
DahejExpansion
Total
Shareholders FundEquity Capital/Internal
1015 1260 281 930 3486Equity Capital/Internalaccruals/Premium
930
Debt 2435 2940 655 2170 8200
Total Means of Finance 3450 4200 936 3100 11686
The existing debt equity ratio is 1.03 : 1; providing enough room toleverage Balance Sheet for new projects in future.
FINANCING STRUCTUREFINANCING STRUCTURE
(USD MILLIONS)(USD MILLIONS)
Particulars DahejTerminal
KochiTerminal
2nd BerthDahej
DahejExpansion
Total
Shareholders Fund 203 252 56 186 697
The existing debt equity ratio is 1.03 : 1; providing enough room toleverage Balance Sheet for new projects in future.
Shareholders FundEquity Capital/ InternalAccruals/ Premium
203 252 56 186 697
Debt 487 588 131 434 1640
Total Means of Finance 690 840 187 620 2337
PetronetPetronet LNG India RankingLNG India Ranking
82
78
80
82
84
Financial Express (FE 500)
58
48
40
50
60
70
Business Standard (BS 1000)
73
68
70
72
74
76
2009 2010
Ran
k
Year
0
10
20
30
40
2009 2010R
an
k
Year
PETRONET LNG GLOBAL RANKINGPETRONET 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 150th Largest Company
301th most Profitable Company
CSRCSR --THE JOURNEY HAS JUST BEGUN……………THE JOURNEY HAS JUST BEGUN……………TOWARDS AN INCLUSIVE SOCIETYTOWARDS AN INCLUSIVE SOCIETY -- DAHEJDAHEJ
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. 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.
Developing Infrastructure Facilities at RMP Todu Canal – Kalamukhi JunctionRehabilitation Area in Puthuvypeen
Renovation of Building of UPES Government School, Puthuvypeen
Distributed uniforms, water bottles & note books to all the 112 students of UPESGovernment 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
CSRCSR -- THE JOURNEY HAS JUST BEGUN…THE JOURNEY HAS JUST BEGUN…TOWARDS AN INCLUSIVE SOCIETYTOWARDS AN INCLUSIVE SOCIETY -- KOCHIKOCHI
Sponsoring of local events like boat race, cultural and sports events in schools
Health Camp being planned for the local population of Puthuvypeen
Thank YouThank You