Bharat Petroleum Corporation Limited · NSE:BPCL
Bharat Petroleum — Investor Presentation (November 2017)
27 slides from Bharat Petroleum's investor presentation, November 2017
Slide 1: Bharat Petroleum Corporation Ltd. Investor Presentation
Bharat Petroleum Corporation Ltd. Investor Presentation November 2017
Slide 2: Disclaimer
Disclaimer No information contained herein has been verified for truthfulness completeness, accuracy, reliability or otherwise whatsoever by anyone. While the Company will use reasonable efforts to provide reliable information through this presentation, no representation or warranty (express or impl
Slide 3: Table of Contents
Table of Contents 1. Corporate Overview 4 2 Business Overview 9 3. Industry Overview 23 3
Slide 4: Corporate Overview
1. Corporate Overview Credit Highlights 4
Slide 5: Introduction
Introduction • India’s 6th largest company by turnover over INR 2,420 bn in MMT FY17 and INR 2,179 bn in FY16 FY17 37.7 Market Sales FY16 36.5 • India’s 2nd largest Oil Marketing Company (OMC) with FY15 34.5 domestic sales volume of over 37.68 MMT in FY17 and 36.53 FY14 34.0 MMT in FY16 FY 13 33.3 0
Slide 6: Important Milestones
Important Milestones GoI acquired Burmah BPCL and GAIL BPCL entered the LNG MR capacity enhanced to Kochi Refinery CCR1 unit at Shell Refineries. Name formed a JV, market by signing a gas 12 MMTPA. capacity Mumbai changed to BPCL in IGL, for sales purchase BPCL and Videocon JV enhanced Refinery 1977
Slide 7: Major Subsidiaries/ JVs
Major Subsidiaries/ JVs Subsidiaries Joint Ventures & Associates City Gas Aviation Upstream Refining Refining Pipelines Trading Activities Distribution Services 100.00% 61.65% 50.00% 50.00% 50.00% 50.00% 22.50% Bharat Oman Kochi Salem Bharat Stars Indraprastha Gas Matrix Bharat Refineries Limited Pi
Slide 8: Business Overview
2. Business Overview Credit Highlights 8
Slide 9: Diversified Product Offering and Presence Across Value Chain
Diversified Product Offering and Presence Across Value Chain Industrial/ Refinery Aviation Retail LPG Aviation Lubricants Gas Commercial Refining capacity 26.9% market 26.2% market Currently 7,000 23.5% market 20.7% market 50+ major LNG of 35.5 MMTPA1 share2 share2 customers share2 in
Slide 10: Refining Coverage
Refining Coverage Installed Capacity Refining Throughput Refining Capacity 30.00 28.55 * 28.69* 29.24* 29.84* 31.25* 3.18 2.86 2.73 3.10 3.20 2.68 25.00 2.48 2.61 2.78 2.52 Mumbai – 240 kbpd 20.00 13.41 13.60 13.10 13.03 12.96 15.00 Kochi – 310 kbpd** 10.00 1 0 .7 1 1 1 .7 9 5.00 1 0 .1 1 1 0 .3 2 1
Slide 11: Bina Refinery
Bina Refinery Bharat Oman Refineries Limited (BORL) –BPCL Interest 50% with 120,000 bpd (6 MMT) Refining capacity at BINA State of art technologies - High Nelson Complexity Index 9.1 NRL Refinery Associated Facilities – SPM, Crude Oil Terminal, 935-km cross country crude oil pipeline from Vadi
Slide 12: Marketing Operations and Efficiencies
Marketing Operations and Efficiencies SBU Market Sales (MMT) Retail Market Share of 37.68 MS & HSD * 33.29 34.00 34.45 36.53 35.00 30.00 Retail 25.00 Lub es MS > 26.89% 20.00 Direct 15.00 Aviation HSD > 26.60% 10.00 LPG 5.00 - FY13 FY14 FY15 FY16 FY17 LPG Bottling Plant Capacity (TMTPA) Thru’put
Slide 13: Efficient Marketing Operations and Infrastructure
Efficient Marketing Operations and Infrastructure Continuous innovation to extend customer focus and improve operational and financial efficiency. Retail Initiatives Brand and Customer Loyalty Launched the first branded fuel in India i.e. Speed Over 8,000 Automated Outlets, Generating over 75%
Slide 14: Ongoing projects – thriving to be self sufficient integrated source of fuel supply
Ongoing projects – thriving to be self sufficient integrated source of fuel supply Integrated Refinery Expansion Project (IREP) at Kochi – Increased refining capacity from 9.5 MMTPA to 15.5 MMTPA along with modernization of existing facilities to produce future quality fuels – Fully Commissioned –
Slide 15: Upcoming projects
Upcoming projects Funding for upstream developments and new assets Refineries – Upgrade/ Expansion / De-bottlenecking Investments in Gas Expansion of marketing infrastructure across all business verticals More expansions in Upstream, Downstream business & Marketing network 15
Slide 16: Capex Strategy
Capex Strategy Capital Expenditure 165.27 99.59 113.60 61.25 71.71 FY13 FY14 FY15 FY16 FY17 Rs bn Strategically expanding upstream activities through inorganic and organic growth opportunities Investment in refining and distribution capacity to bridge the gap between sales volumes and production
Slide 17: Improved Financial Performance
Improved Financial Performance Net Worth (INR bn) Total Debt / EBITDA 296.68 325.76 1.4x 273.23 224.67 1.3x 1.3x 1.3x FY15 FY16 FY17 H1FY18 FY15 FY16 FY17 H1FY18 EBITDA / Interest Total Debt / Equity 27.1x 22.7x 0.60x 0.59x 18.0x 0.58x 10.5x 0.55x FY15 FY16 FY17 Q1FY18 FY15 FY16 FY17 H1FY18 Stable E
Slide 18: Improved Financial Performance
Improved Financial Performance PAT (INR Billion)/ Networth (%) 100.00 27.10 35.00 25.82 30.00 Net Profit (Rs. bn) 80.00 22.63 25.00 Networth % 60.00 20.87 20.00 15.89 40.00 15.00 8.79 80.39 10.00 20.00 40.61 50.85 70.56 26.43 5.00 13.11 - 0.00 FY12 FY13 FY14 FY15 FY16 FY17 Profit after Tax (Rs. Bn)
Slide 19: BPRL’s Upstream Story over the years
BPRL’s Upstream Story over the years……. 2017 2016 2015 2013 2012 2011 Declaration of Russian Commerciality approved in 2010 22 Acquisition Operatorship Schedule B discoveries block 2009 Lead (cum) & Joint operator Reserve Appraisal operator certification Wells 2008 Shale gas entry Australia 2007 Ind
Slide 20: Upstream Global Spread
Upstream Global Spread BPCL through its subsidiary BPRL has Participating Interests in 22 blocks across 6 countries and Equity Participation in Vankor and Taas in Russia −Estimated recoverable reserves of about 75 TCF till date in Rovuma basin (Mozambique) −Production 20 MMTPA by Vankor (currently a
Slide 21: Global Upstream Footprint
Global Upstream Footprint Partnership with established Oil and Gas operators expected to generate optimal returns for BPCL. Within India Mozambique Exploration Block Operator BPCL Stake Partners Exploration Block Operator BPCL Stake Partners NELP—IV Mozambique PTTEP, Mitsui and Co., ENH, Anadarko 10
Slide 22: BPRL – Successful acquisition of TYNGD and Vankor assets in Russia in 2016
BPRL – Successful acquisition of TYNGD and Vankor assets in Russia in 2016 BPRL along with an Indian Consortium, TYNGD – Srednebotuobinskoe Field (2 Licenses) acquired: BPRL effective interest: 9.87% - Participatory shares representing 29.9% of the 2015 Oil Production: c.22 mbbl/d gross to the
Slide 23: Highly Experienced Management Team
Highly Experienced Management Team Mr. D Rajkumar, Chairman & Managing Director 32 years of experience, out of which almost 15 years of board experience as MD of BPCL’s JV and subsidiary companies Has experience in marketing, to pipeline projects and across the integrated upstream and downstream
Slide 24: Industry Overview
3. Industry Overview Corporate Overview Credit Highlights 24
Slide 25: India – Attractive Industry Dynamics
India – Attractive Industry Dynamics Significant potential for domestic O&G companies given low per-capita oil consumption and growing demand. Per Capita Oil Consumption India Oil Demand bbl/day per 1,000 People Million Tonnes India 3 76.0 FY17 23.8 China 9 21.5 74.6 Brazil 15 FY16 21.8 19.0 Russia
Slide 26: Indian Oil Industry
Indian Oil Industry Compensation of Under Recoveries • Prices of retail sales of LPG and PDS Kerosene Oil are capped by the Government of India (GoI) • Under-recoveries determined and compensated provisionally by the GoI on quarterly basis • Govt. has consistently compensated OMCs including BPCL for
Slide 27: Thank You
Thank You
Bharat Petroleum — Investor Presentation (November 2017) on 6ix