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PETRONET LNG LIMITED

A CORPORATE PROFILE

PETRONET LNG LIMITED 2011

OVERVIEW
Global & Indias Primary Energy Consumption

Scenario Indias Gas Scenario, Infrastructure Pricing of Gas Role of LNG in India About Petronets Dahej & Kochi Terminals New Initiatives Performance

PRIMARY ENERGY PER CAPITA CONSUMPTION

Source : BP Statistical Review June 2011

PRIMARY ENERGY CONSUMPTION (MTOE) - WORLD


Year 2005 6%

Fuel
Oil Gas Coal Nuclear Hydro Renewables

2005
3837 2475 2930 627 669 -

%
36 24 28 6 6 -

2010
4028 2858 3556 626 776 159

%
34 24 30 5
28%

6% Oil 36% Gas coal Nuclear Hydro Renewables 24%

1%

6 1

5%

Year 2010 Oil 34% Gas coal Nuclear Hydro Renewables

6%

Total

10537

100 12002 100

30%

24% Source : BP Statistical Review-June 2011

PRIMARY ENERGY CONSUMPTION (MTOE) - INDIA


Year 2005 1%

Fuel
Oil Gas Coal Nuclear Hydro Renewables

2005
116 33 213 4 22 -

%
30 8 56 1 5 -

2010
156 56 278 5 25 5

%
29 11 53 1 5 1
56%

5% Oil 30% Gas coal Nuclear 8% Hydro Renewables Year 2010

1% 5%

1% Oil 29% Gas coal Nuclear

Total

387

100

524

100
53%

11%

Hydro Renewables

Source : BP Statistical Review-June 2011

INDIA A 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 similar

increase in Energy Consumption

Share

of Natural Gas in Indian Energy basket to increase from 11% to 20% by 2025 increase in domestic gas productiondependency on imported gas to increase substantially to grow faster, connecting new markets

Despite

Pipeline network- developing into a national grid- needs

CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO


550+ (19.5+)
400.0 350.0 300.0 250.0 200.0

Demand
( Bcf/Day) ( MMSCMD)

Supply

381.0 (13.5) 341.1 (12.1) 306.4 (10.8)

253.4 (9.0) 178.9 (6.3) 191.6 (6.8) 198.4 (7.0) 155 (5.5)

240 (8.5) 215 202.9 (7.2)


(7.6)

150.0

146 (5.2)
100.0 50.0 0.0 2010-11

2011-12

2012-13

2013-14

2014-15

2019-20

Demand Mercados Analysis Supply Directorate General of Hydrocarbons (DGH)

SECTOR WISE PROJECTED GAS DEMAND


Gas Demand (MMSCMD)
250.00 200.00 150.00 100.00 50.00 2009-10 Power 2010-11 Fertilizer 2011-12 City Gas 2012-13 Petchem-Refinery 2013-14 Sponge Iron 2014-15

2010-11

2011-12

2012-13

2013-14

2014-15

Power Fertilizer City Gas Petchem-Refinery Sponge Iron Total

87.71 49.39 13.70 24.44 3.71 178.94

149.11 57.48 17.53 25.42 3.82 253.36

185.52 68.08 22.44 26.43 3.93 306.41

212.73 68.08 28.72 27.49 4.05 341.08

243.34 68.08 36.76 28.59 4.17 380.95

Source: Mercados Analysis, 2010

LARGE DEMAND BUT SENSITIVE TO PRICE


Gas demand and supply, 2015 Mmscmd, at customer gate prices 311
35 126 77 203

388 276

59 171 25 19 40

230
45

46

91

146

185

185

185

185

1
2010 year Price of $16- Low end 17/ mmbtu consumption

2
Price of $13- Medium 14/ mmbtu

3
Price of $11- High 12/ mmbtu

4
Price of $810 mmbtu Potential demand, 2015

Sectors with demand

Industries CNG transport

Refineries Industries Power cogen

Peaking power plants

Baseload power New fertilizer plants Imports

Prices at Crude of $ 100/Bbl


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 SOURCE: Indianpetro; DGH; Company annual reports; Expert interviews; McKinsey analysis

Domestic supplies

INDIAs GAS INFRASTRUCTURE

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 79% translate into overall energy

demand growth at CAGR of 7.50%


Given Indias 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, Indias LNG import capacity is around 13.5 MMTPA through

its two terminals & meeting approx. 20% of total gas supply of the country

PETRONET LNG LIMITED


Incorporated on April 2, 1998
Authorized Capital USD 260 mln, Paid up capital USD 160 mln

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

Business Strategy

Create and manage world-class worldLNG infrastructure Pursue synergistic business opportunities Continue excellence in LNG business - Focus on higher capacity utilization and better operational efficiencies - Diversify LNG sources

Revenue grew 24% EBITDA growth 17%

2849 2305

1772 1198 1425

Diversify business
-

Gas-based power generation Venture into city-gas distribution/ direct marketing to far-flung consumers Solid cargo port at Dahej

146

196

208

201

273
-

FY-07

FY-08

FY-09

FY-10

FY-11

Revenue EBIDTA

(all values in USD Million)

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 Truck Loading facility can handle 2500 loadings/ yr. LNG Cargoes unloaded :761(September 21,2011) Further capacity expansion to 15 Mmtpa
: Under Construction : DFR Under Progress

Second Jetty Regas & Storage Capacity Pre Project Activities started

DAHEJ LNG STORAGE TANKS

DAHEJ REGAS FACILITIES WITH AIR-HEATER AIR-

LNG TRUCK LODING FACILITIES DAHEJ


WEIGH BRIDGE
VAPORISATION FACILITIES

KOCHI LNG TERMINAL


LNG Terminal located in Special Economic

developer status

Zone with Co-

Capacity 2.5

5.0 MMTPA

Tied up 1.44 MMTPA LNG from Exxon Mobils Gorgon Project 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 more 87%, scheduled commissioning by end 3rd Qtr. , 2012

than

KOCHI STORAGE TANK

KOCHI - MARINE FACILITIES

NEW THIRD TERMINAL AT EAST COAST


Proposed Capacity: 5 MMTPA Possible Locations: Andhra or

Orissa Coast Regasification Scheme: Indirect Fluid using ambient air heater PFR Completed Site Selection Process under progress Process for selection of Consultant for DFR started

INTEGRATED POWER PLANT AT DAHEJ


Proposed power plant of 3 x 356 MW-ISO (total 1068 MW CCGT) with improved performance, the expected output is 1200 MW Fuel requirement of 1.0~1.1 Mmtpa LNG Implementation schedule 12~15 months for pre-development activities 33 months for construction and commissioning DFR for a 1200 MW Power Plant - completed Land Acquisition & Environment Clearance under progress. Power project planned 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 customers premises in regions not serviced by pipelines

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 pipeline, 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

PERFORMANCE GRAPH

Sales Trillion BTU


450 400 350 300 250 200 150 100 50 0 100 0 125 115 247 287 322 321 384 412 700

Net Worth (Million USD)


638 600 500 431 400 300 233 200 191 277 352 486 583

PERFORMANCE GRAPH
Million USD

Turnover USD Million


3000 2849 160 140 2500 2305 120 2000 1425 1198 1000 423 991 834 40 500 20 0 -6 -20 60 42

PAT Million USD

135 113 103 88 68 56

1772

100 80

1500

PERFORMANCE BASED ON EMPLOYEE PARAMETERS


2010-11
No. of Employees Turnover/ employees (USD Million) Profit Before Tax / Employee (USD Million) Employee Remuneration cost as % of Profit)

2009-10 273 8.47 0.47 3.41%

2008-09 256 7.24 0.66 2.53%

276 10.31 0.70 3.3%

Total no. of employees : 276 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%

FINANCIAL PARAMETERS

EPS (USD)
0.14 0.09 0.06 0.15 0.12

0.18

FY-06 Year FY-06 FY-07 FY-08 FY-09 FY-10 FY-11

FY-07

FY-08 EPS (USD) 0.06 0.09 0.14 0.15 0.12 0.18

FY-09 P/E 23.99 11.15 11.62 5.75 15.19 14.86

FY-10

FY-11 D/E Ratio 1.17 1.08 0.97 1.15 1.12 1.20

SHAREHOLDERS WEALTH CREATION


As on Mar, 31 USD per share Mkt. Price INR 2004 0.58 27 2005 1.00 46 2006 1.34 62 2007 1.01 47 2008 1.60 73 2009 0.87 40 2010 1.78 82 2011 Current 2.67 123 3.87 178

USD per share


3.87 2.67 1.60 1.01 0.87 1.78

1.00 0.58 2004 2005

1.34

2006

2007

2008

2009

2010

2011

Sep/11

FINANCING STRUCTURE
(US$ Particulars Dahej Terminal 250 Kochi Terminal 270 2nd Berth at Dahej 60

MILLION)
Total

Shareholders Fund Equity Capital/Internal accruals/Premium Debt Total Means of Finance

580

550 800

630 900

140 200

1320 1900

CSR -THE JOURNEY HAS JUST BEGUN TOWARDS AN INCLUSIVE SOCIETY


Participative community development programmes with GIDC Luvara & Lakhigam villages CODEGAZ, the CSR arm of our strategic partner GDF Suez supports our cause. Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage. Preventive and Social medicine aids (includes primary health centre). 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. Renovation of personal facility & fencing at Panchayat office of Luvara Village, Gujarat. Govt. Development Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre.

Health & Sanitation


Education and Employment generation programs


Community Development

NOTES

Thank You
Petronet LNG Limited GIDC Industrial Estate, Plot No. 7/A, Dahej, Taluka Vagra, Distt. Bharuch Gujarat - 392130

Dahej Plant

Petronet LNG Limited, 1st Floor, World Trade Centre, Babar Road, Barakhamba Lane, New Delhi 110001
www.petronetlng.com For any other info. : akchopra@petronetlng.com Ph: 91-11-23411411

Corporate Office

Petronet LNG Limited Survey No. 347, Puthuvypu P.O. , Kochi, Kerala - 682508

Kochi Site

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