CORPORATE PROFILE PETRONET LNG LIMITED March, 2015
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
PRIMARY ENERGY CONSUMPTION (mtoe) - WORLD Fuel 2005 % 2013 % 6% 6% 1% Year 2005 Oil Gas Oil 3901 36 4185 33 Gas 2501 23 3020 24 28% 36% Coal Nuclear Coal 2982 28 3827 30 23% Hydro Renewables Nuclear 627 6 563 4 Hydro 662 6 855 7 4% 2% 7% 33% Year 2013 Oil Gas Renewables 84 1 279 2 30% Coal Total 10708 100 12730 100 24% Nuclear Hydro Source : BP Statistical Review-June 2014 Renewables
PRIMARY ENERGY CONSUMPTION (mtoe) - INDIA Fuel 2005 % 2013 % 1% 6% 1% Year 2005 Oil Oil 120 33 175 29 33% Gas Coal Gas 32 9 46 8 Coal 184 50 324 55 50% 9% Nuclear Hydro Renewables Nuclear 4 1 8 1 Hydro 22 6 302 5 Renewables 2 1 12 2 Total 367 100 595 100 Source : BP Statistical Review-June 2014 1% 5% 2% Year 2013 Oil 29% 55% 8% Gas Coal Nuclear Hydro Renewables
INDIA A MAJOR GAS/LNG CONSUMER 250 15th largest gas consumer 51bcm (~138 mmscmd) 4th largest LNG importer 18 bcm (~48 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) Power Sector 2014-15 2015-16 2016-17 2019-20 200 150 Fertilizer City Gas Power 122 139 157 202 Fertilizer 60 72 97 106 City Gas 17 18 22 36 100 50 0 Industrial Petchem/ Refineries / Internal Cons. Sponge/ Iron/ Steel Industrial 22 25 27 35 Petchem/Refineries/In ternal Consumption 42 44 47 54 Sponge Iron/Steel 8 8 8 10 Total Realistic Demand 2014-15 2015-16 2016-17 2019-20 Source : BP Statistical Review June 2014 & Vision 2030, Natural Gas Infrastructure in India 272 307 358 443
CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO 1000 900 Demand Domestic Supply 713.5 800 (mmscmd) 625 700 600 442 500 358 400 300 272 307 200 100 0 172 212 121 157 103 111 *Actual 90 2014-15 2015-16 2016-17 2019-20 2026-27 2029-30 Large demand for gas but extremely price sensitive
LARGE DEMAND BUT SENSITIVE TO PRICE PETRONET ANALYSIS-2015 Petronet Analysis 2015 Gas demand and supply, 2016 mmscmd, at customer gate prices 143 53 85 32 228 72 47 275 28 303 119 147 55 358 202 40 103 156 156 156 156 2014 year end consumption 1 2 3 4 Price of $14- Low 15/ mmbtu Price of $12-13/ mmbtu Medium Price of $10-11/ mmbtu High Price of $7-9 mmbtu Potential demand, 2016 Sectors with demand Industries CNG (transport) Refineries Industries New fertilizer plants Peaking power plants Base load power Imports Prices at Crude of $ 65/Bbl Domestic supplies Source : Vision 2030, Natural Gas Infrastructure in India & PLL Analysis
Existing P/L Network : 15300 KMS (400 MMSCMD) Proposed additional P/L Network : 15000 KMS Mundra Ennore India Shipping Summit 2013
LNG IN INDIA Vision 2030, Natural Gas Infrastructure in India envisaged a GDP growth of 6% Current GDP growth of about 5-6% translates into overall energy demand growth at CAGR of 6-7% Given India s growing energy requirements & unlikelihood of matching increase in the domestic supplies, the import dependence is only going to accentuate sharply in the coming years LNG Regas Capacities Presently, India s LNG import capacity is 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$200 Million Paid up capital US$120Million Commencement of Commercial Operations - April, 2004 Equity 50% held by Oil & Gas PSUs(BPCL, GAIL, IOCL & ONGC) 10% held by GDFI (part of GDF SUEZ) Public & FIIs
TOWARDS THE VISION Vision To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international presence 7000 6000 5000 4000 3000 2000 1000 Revenue growth 32% EBITDA growth 13% 0 1102 Revenue 1311 1686 EBIDTA 2130 137 184 196 189 (All Values in US$ Million) 2639 4539 257 383 5827 408 6291 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 - Wind Energy Maintain highest standards of business ethics
DAHEJ LNG TERMINAL Located at Dahej in Gujarat in the Gulf of Cambay Commencement of Operations in 2004 LNG Cargoes unloaded : 1300+ 7.50 mmtpa LNG imported from Qatar under long term contract Terminal meets almost 30% of India s gas requirement Truck Loading facility can handle 3000 loadings/ yr. Also offering tolling services to Offtakers & Bulk customers Capacity expansion to 15 mmtpa (provision for 20 mmtpa) Second Jetty Commissioned in April, 2014 Expansion Status Capacity (mmtpa) 2004 5.0 2009 10.0 2016 15.0 All EPC Contracts awarded Scheduled Completion November, 2016 Expanded Capacity contracted with GAIL, GSPC, IOCL & BPCL
DAHEJ PLANT FACILITY 14
DAHEJ SECOND JETTY
SATELLITE LNG HUB & LNG BY ROAD LNG BY ROAD VAPORISATION FACILITIES SATELLITE HUB
KOCHI TERMINAL
KOCHI LNG TERMINAL LNG Terminal located in Special Economic Zone Terminal commissioned in September, 2013 Capacity 5.0 mmtpa Long term contract of 1.44 mmtpa LNG from Exxon Mobil s Gorgon Project (Australia) supply to commence by end 2015 - back to back GSA with GAIL, IOCL and BPCL Time Charter Party for 4 th vessel selected Currently operating at very low capacity in absence of major part of the pipelines connecting Tamil Nadu, Bangalore & Mangalore markets Truck loading facility supply commenced Bunkering, reload and cool down services also initiated
KOCHI - FACILITIES KOCHI FACILITIES
KOCHI FACILITIES
KOCHI TRUCK LOADING
KOCHI BUNKERING FACILITIES NOR LINES (MV KVI TBJORN) February 25, 2015
KOCHI RELOADING GASLOG, Singapore (1,51,125 CBM) January 31, 2015 TRAFIGURA, Singapore (1,44,075 CBM) March 18, 2015
KOCHI PIPELINES MANGALORE KASARGOD BANGALORE KRISHNAGIRI KANNUR KOZHIKODE KOOTTANAD SALEM TIRUPPUR ERODE COIMBATORE KOCHI States: 03 Districts:17 KAYAMKULAM No decision Delayed Completed 24
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 All approvals obtained Estimated Project cost : 750 Million USD Gangavaram
GANGAVARAM TERMINAL LNG terminal to be developed as SPV with GPL as partner MOEF has accorded Environmental and CRZ Clearance; State Government approval received 5 mmtpa onshore terminal proposed to be commissioned in 2017 Facilities to include 2 Storage tanks, marine & regasification facilities Understanding reached for connectivity with East West & Mallavaram-Bhilwara pipelines. In discussions with Kakinada - Srikakulam Pipeline Actively working on Customers tie up
STRATEGIC LOCATIONS SERVICE THE ENTIRE COUNTRY
ASSOCIATED BUSINESSES DIRECT MARKETING KOCHI - SERVICES WIND FARM LNG to coastal consumers - small LNG vessels By road satellite stations Direct marketing bulk consumers City gas distribution International Companies bring LNG, store for a period and take it back LNG Vessels to be provided services of cool down and gassing up for warm vessels Vessels running on LNG as fuel to be provided bunkers DAHEJ CARGO PORT Setting up a wind farm of 40 MW in Gujarat Captive consumption Power cost optimisation Joint development of Solid Cargo Port along with Adani Group Strategic location Bulk /break bulk and also project cargo Petronet aims to diversify to further strengthen its business profile
2 PERFORMANCE GRAPH 600 500 Sales/ Service TBTU 548 524 494 1200 1000 Net Worth USD Million 967 1084 400 400 440 430 800 765 300 290 322 321 600 431 486 583 200 400 352 233 277 100 200 0 0
PERFORMANCE GRAPH 7000 Turnover USD Million 250 PAT USD Million 6000 5827 6291 212 213 5390 200 5000 4539 4000 150 124 119 3000 2000 1686 2130 2639 100 63 95 104 81 97 1000 1102 1311 50 0 0
FINANCIAL PARAMETERS 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Market Price USD 3.02 2.97 2.46 2.22 1.46 1.64 1.24 0.92 0.94 0.80 0.54 2004 05 06 07 08 09 10 11 12 13 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 2014-15* 2013-14 2012-13 2011-12 Number of Employees 463 427 397 309 Turnover/ employees (USD Million) 11.64 14.73 13.21 12.35 Profit Before Tax/Employee (USD Million) 0.31 0.53 0.80 0.93 Profit after Tax/employee(USD Million) 0.21 0.28 0.48 0.58 Employee Remuneration cost* (as % of Profit) A Snapshot of Manpower Statistics 6.02% 6.55% 3.22% 2.83% Location Skill Set Others * As on 31.12.2014 Corporate : 98 Professional : 105 Average Age: 34 (51% employees in 30-40 years age) Dahej : 231 Technical : 321 Kochi : 134 Office Support : 37 69% are Technical & 22% professional Average years of association of employees with Company 5 years Attrition rate: 2014-15 * : 3.45 % Training & Development : 4.18 Mandays / Employee
RATING AND RECOGNITION Ratings & Ranking: Moody s International Rating Baa3 Rated AA+ by CRISIL, India Ratings and ICRA 36th rank Fortune India 500 (2013-14) 43rd Rank in BW500(2013-14) 36th rank in ET (2012-13) 109th Largest Company & 214th most Profitable Company in Plimsoll Global Analysis on Global Crude Oil & Gas Extraction Industry ranking Certificate of Appreciation from US Environment Protection Agency for maintaining low methane emissions
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 school in Dahej Indirect employment for local villagers in the area of Housekeeping & Horticulture Community Development Contributed to Mataria Talav sweet drinking water project of State Govt. for Bharuch residents Construction of 13 toilets in school & 172 household toilets in Luvara village to achieve 100% sanitation Massive mangrove plantation to cover 1000 hectares by 2015-16 in consultation with Gujarat Ecology Commission/Forest Department. Sponsored installation of my PET waste recycling machine at Ahmedabad Railway Station, 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 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 65 Solar powered high mask lights in Puthuvypeen Construction of 25 household toilets
Thank You