Indian Oil Corp. Ltd. · NSE:IOC
Indian Oil — Investor Presentation (February 2013)
47 slides from Indian Oil's investor presentation, February 2013
Slide 1: Investor Presentation February 2013
Investor Presentation February 2013
Slide 2: IOCL – An Overview
IOCL – An Overview Oil Industry In India IOCL’s Core Operations Strategic Initiatives Financial Performance Nine Months Snapshot Ongoing Projects 1
Slide 3: Company Overview - Corporate History
Company Overview - Corporate History Merger Indian Refineries Ltd. Indian Oil Company Ltd. 1958 1959 Indian Oil Corporation Ltd. 1964 Integrated Refining and Marketing company in PSU domain Companies Merged Assam Oil Company IOBL IBP Co. Ltd BRPL 1981 2006 2007 2009 2
Slide 4: Corporate Journey
Corporate Journey 2011-12 Rs. 4,09,957 cr Enters Becomes Enters into Becomes the Mathura refinery Established petrochemical first Indian LNG first Indian becomes India’s first public business by Enters into oil & gas business company to first refinery to sector commissioning the polymers company to
Slide 5: IndianOil – Quick Facts
IndianOil – Quick Facts India’s largest commercial enterprise and flagship national oil company and downstream petroleum major First Ranked Indian corporate in Fortune Global 500 – moved up 15 steps from 98th position last year to 83rd position in 2012 “Maharatna” status – another jewel in the
Slide 6: Corporate Structure
Corporate Structure Board Structure Sharing Holding Pattern Chairman 7 Whole-time Functional Directors 2 Part-time Non- executive Nominee Directors from MOP&NG 10 Independent Directors * Others include individuals & trusts etc Notes Shareholding pattern as on 31st March 2012 5
Slide 7: Government Of India's Ownership & Support
Government Of India’s Ownership & Support Capital Raising: Government Approval Board Control: Performance: Members Annual MoU Nominated to with Govt. for IOC Board performance Pricing: Select petroleum Equity products Control: based on 87.69%* Functional Govt. Directors: initiative Appointment by Pr
Slide 8: Operating Structure
Operating Structure Downstream & Petrochemical Operations Refining Pipeline Fuel Research & Petrochemicals Transportation Marketing Development …. also diversified into E&P, Gas, Wind, Solar, Nuclear Power and Bio-fuels 7
Slide 9: Business Space
Business Space • 10 out of 22 • 37,000 Touch • Over 10,900 Km • Lube refineries in the Points (52%) length formulations country • 66.8 million • 77 MMTPA • In-house • 65.7 MMTPA LPG customers capacity technologies capacity ( 31%) • Patents (215) Group Marketing Pipelines Refining R&D • Operate world
Slide 10: IOCL's Dominance in Downstream Oil sector
IOCL’s Dominance in Downstream Oil sector Refining Share Products Pipelines Share Industry Capacity – Downstream Industry Capacity – 213.18 MMT 70.35 MMT HPCL 23% IOCL 50% BPCL 27% Petroleum Products Market Share Industry Size – 147.99 MMT Largest refiner Largest marketing share Largest pipeline net
Slide 11: Financial Overview
Financial Overview 4,09,957 3,28,652 Rs./crore 2,71,095 57,877 55,332 50,553 18,872 21,600 16,339 FYE 10 FYE 11 FYE 12 EBITDA Net Worth Turnover Turnover surpassed Rs.4,00,000 crore mark in 2011-12 Highest ever EBITDA of Rs.21,600 crore in 2011-12 10
Slide 12: Oil Industry In India
IOCL – An Overview Oil Industry In India IOCL’s Core Operations Strategic Initiatives Financial Performance Nine Months Snapshot Ongoing Projects 11
Slide 13: Oil Industry in India – An Overview
Oil Industry in India – An Overview Oil & Natural Gas Corporation Ltd. (ONGC) 1 UPSTREAM (Exploration & Oil India Ltd. Production) Reliance, Cairn Energy, HOEC, Premier Oil etc Indian Oil Corporation Ltd. 2 DOWNSTREAM Hindustan Petroleum Corporation Ltd. (HPCL) (Refining, Marketing & Pipelines) Bhar
Slide 14: Large Potential in India
Large Potential in India Consumption (MMT) 148 145 141 138 134 130 129 121 115 FYE 07 FYE 08 FYE 09 FYE 10 FYE 11 FYE 12 Consumption of petroleum products grew at CAGR of 4.1% in last five years Source: Petroleum Planning & Analysis Cell, Ministry of Petroleum & Natural Gas, Govt. of India 13
Slide 15: IOCL's Core Operations
IOCL – An Overview Oil Industry In India IOCL’s Core Operations Strategic Initiatives Financial Performance Nine Months Snapshot Ongoing Projects 14
Slide 16: Refining – Portfolio
Refining – Portfolio • Access to high demand Controls 10 refineries spread across market of North India • Largest capacity in this the country (65.70 MMT – 31% of region Industry) Digboi HMEL Panipat Refining Industry Capacity 213.18 MMTPA Mathura Bongaigaon Numaligarh IOCL’s share of Total Capaci
Slide 17: Refining – Operating Highlights
Refining – Operating Highlights Strategic inland refinery locations with most effective supply and evacuation system through pipelines 55.6 Highest ever throughput of 55.6 MMT Highest ever distillate yield of 77.8% 53.0 Lowest ever specific energy consumption at 57 50.7 MBN* against 59 MBN i
Slide 18: Refining – Energy Consumption
Refining – Energy Consumption MBN Overall MBN of IOC refineries always lower than PSU average by 5-6 units *An energy index defined as MBTU/BBL/NRGF 17
Slide 19: Wide Network of Cross Country pipelines
Wide Network of Cross Country pipelines Largest liquid pipeline network Jalandhar Length Capacity Market Share (KM) (MMTPA) Downstream Bhatinda Ambala Sangrur Roorkee Najibabad Crude Oil 4,376 40.40 73% Panipat Meerut Tinsukia Pipelines Rewari Delhi Sanganer ChaksuMathura Bongaigaon Ajmer Tundla S
Slide 20: Pipelines Operating highlights
Pipelines Operating highlights 75.5 68.5 65.0 47.5 42.5 Crude 42.0 Product 23.0 26.0 28.0 FYE 10 FYE 11 FYE 12 Pipelines Throughput (MMT) Surpassing performance continues Highest ever throughput of 75.5 MMT achieved by IOCL’s pipelines in FYE 12 Highest ever capacity utilization of 118% for cr
Slide 21: Marketing – Reaching out, Touching Lives
Marketing – Reaching out, Touching Lives Retail Outlets Bulk Consumer Pumps 20,575 6,218 Aviation Fuel LPG Bottling Stations Plants 89 96 Over 37,000 Customer touch- points Terminal / Depots 139 LPG Distributorships 5,934 SKO / LDO Dealerships 3,954 52% of the Industry Infrastructure Source: Industr
Slide 22: Marketing - Sales: Rural Penetration
Marketing - Sales Rural Penetration : Contributing towards inclusive growth No. of KSKs commissioned during the year 743 727 731 558 575 469 414 22 FYE 05 FYE 06 FYE 07 FYE 08 FYE 09 FYE 10 FYE 11 FYE 12 KSK Sales (MS & HSD) - % of total IOC’s Sales (MS & HSD) 9.2 7.6 6.5 5.0 FYE 09 FYE 10 FYE 11 FY
Slide 23: Marketing – Touching Billion Hearts
Marketing – Touching Billion Hearts Market leader with 46% market share and 52% 75.7 market share in terms of infrastructure 72.9 4.3 69.9 45% of the total volume from retail sales; highway 5.0 RO business accounts for more than 50% of the 4.5 retail business (MMT) Sales through KSK network re
Slide 24: Diversified Customer Base & Product Suite
Diversified Customer Base & Product Suite Diversified range of core sector customers Railways Aviation Power House Coal Diversified Fertiliser Plants Transport Customer Defence Base The turnover growth is insulated from the cyclical demand fluctuations due to diversified customer b
Slide 25: R&D Providing The Cutting Edge
R&D Providing The Cutting Edge Commercialization of technologies INDMAX :For maximisation of LPG & light distillates from Refinery Residue. Marine Oils : One of six companies to have developed “Original Equipment Manufacturer Approved Marine Technology Equipment” Needle Coke :One of three co
Slide 26: R&D Providing The Cutting Edge
R&D Providing The Cutting Edge Lubricants 154 product formulations developed, 108 commercialized, 56 approvals obtained from user Industries / OEMs In a first overseas business gain, Mauritius Shipping Corporation adopted indigenously developed Servo Marine grades Patents Six patents grant
Slide 27: Strategic Initiatives
IOCL – An Overview Oil Industry In India IOCL’s Core Operations Strategic Initiatives Financial Performance Nine Months Snapshot Ongoing Projects 26
Slide 28: Spreading our Wings – Petrochemicals
Spreading our Wings – Petrochemicals Forward Integration into Petrochemicals 1539 Sales (KT) 120 TMTPA capacity LAB plant 658 Polymers commissioned at Gujarat in August 938 2004 Glycols 216 553 TMTPA capacity PX/PTA at 652 239 151 Panipat in June 2006 PX/PTA 528 857 TMTPA Ethylene and 650 TMTP
Slide 29: Spreading our Wings – E&P
Spreading our Wings – E&P Backward Integration into E&P Domestic Exploration Blocks NELP – 14 blocks with ONGC / OIL / GAIL / GSPC / Petrogas / HPCL / HOEC / AWEL (15-100% participating interest) Coal Bed Methane – 2 blocks with ONGC (20% participating interest) International Exploration Blocks
Slide 30: Diversification to Other Energy Sources
Diversification to Other Energy Sources GAS Gas sales of 1.72 MMT in FYE 2012, Turnover grew by 4.9% against previous year Operating City Gas Distribution (CGD) network with JV company Green Gas Ltd in Agra & Lucknow Consortium with Adani Gas Ltd to develop CGD network on pan India basis Set
Slide 31: Diversification to Other Energy Sources
Diversification to Other Energy Sources Wind Power, Biofuels & Solar Energy Wind Power Commissioned 21MW plant at Kachchh, Gujarat in Jan 09 Second plant of 48.3 MW capacity consisting of 23 windmills under implementation in Andhra Pradesh; out of 23, 8 windmills commissioned in March’12 BIOFUEL
Slide 32: Overseas Presence
Overseas Presence IndianOil • Aviation, terminaling and retail Mauritius • Leader in aviation Ltd. • 24,000 Metric Ton capacity storage Terminal at Port Louis (100% ) • 18 retail outlets Lanka IOC • Storage, terminaling and retail business • 157 retail outlets Ltd. • 1/3rd share in Ceylon Petroleum
Slide 33: Financial Performance
IOCL – An Overview Oil Industry In India IOCL’s Core Operations Strategic Initiatives Financial Performance Nine Months Snapshot Ongoing Projects 32
Slide 34: Financial Performance
Financial Performance Turnover PBT Before Exceptional Items(1) (INR / bn) (INR / bn) 150 141 4,500 4,100 125 115 4,000 101 100 91 3,500 3,287 75 3,000 2,854 2,711 43 2,475 50 2,500 25 2,000 0 1,500 FY08 FY09 FY10 FY11 FY 12 FY08 FY09 FY10 FY11 FY 12 Net Worth Net Profit (INR./ bn) (INR / bn) 125 102
Slide 35: Financial Performance
Financial Performance EBITDA Pipelines EBITDA (INR./ bn) (INR / bn) 40 216 189 163 35 143 33 113 29 26 FY08 FY09 FY10 FY11 FY 12 FY08 FY09 FY10 FY11 FY 12 34
Slide 36: Financial Performance
Financial Performance Total Debt to Equity Long Term Debt to Equity (x) (x) 1.4 1.30 0.4 0.4 0.4 0.4 1.2 0.3 1.0 1.0 0.3 1.0 0.9 0.9 0.3 0.8 0.2 0.6 0.4 0.1 0.2 0.0 0.0 FY08 FY09 FY10 FY11 FY 12 FY08 FY09 FY10 FY11 FY 12 Liquid Investments(1) Core Debt to Equity (INR Bn) (x) 0.4 0.33 600 563 0.3 486
Slide 37: Compensation of Under Realization
Compensation of Under Realization INR Crore FYE 08 FYE 09 FYE 10 FYE 11 FYE 12 Apr-Dec 12 Gross Under- realization 43,094 58,593 25,879 43,112 75,469 67,123 Upstream 14,323 18,210 7,548 16,704 29,961 24,327 Discount Oil Bonds 18,997 40,383 - - - - Govt. Support Cash Compensation - - 15,172 22,605 45
Slide 38: Infrastructure Base – A Phenomenal Growth
Infrastructure Base – A Phenomenal Growth FYE 12 Gross Block of Fixed Assets (Rs./ thousand crore) FYE 11 66 FYE 08 FYE 09 80 93 FYE 10 Gross Fixed Assets includes Capital Work in Progress 37
Slide 39: Nine Months Snapshot
IOCL – An Overview Oil Industry In India IOCL’s Core Operations Strategic Initiatives Financial Performance Nine Months Snapshot Ongoing Projects 38
Slide 40: Refining Operating Highlights
Refining Operating Highlights Q3 Q2 Q1 Apr- Dec’12 Crude T’put 14.2 13.1 13.6 40.9 (MMT) Capacity 103.4 96.3 100.8 100.2 Utilization (%) Distillate Yield 78.4 78.6 77.6 78.2 (%) GRM ( $/bbl) 6.15 5.15 (4.81) 2.22 Thruput (MMT) 39
Slide 41: Pipelines Operating Highlights
Pipelines Operating Highlights Q3 Q2 Q1 Apr- Dec’12 Crude: 11.9 11.5 11.6 35.0 Thr’put Capacity 115.6% 111.4% 113.0% 113.3% Utilisation Product: 7.5 6.8 7.0 21.3 Thr’put Capacity 71.7% 67.1% 69.4% 68.9% Utilisation Total: 19.4 18.3 18.6 56.3 Thr’put Capacity 93.4% 89.2% 91.3% 91.1% Utilisation Thrup
Slide 42: Marketing Operating Highlights
Marketing Operating Highlights (MMT) Q3 Q2 Q1 Apr- Dec’12 Inland 17.626 16.162 17.712 51.500 Export 1.133 0.766 0.855 2.754 Gas 0.453 0.429 0.451 1.333 Petro- 0.472 0.470 0.405 1.347 chemicals Explosives 0.022 0.018 0.020 0.060 Total 19.706 17.845 19.443 56.994 Sales (MMT) 41
Slide 43: Financial Highlights
Financial Highlights Net Under - Recovery PBT (INR./ bn) (INR./ bn) 96 175 75 150 132 33 25 100 -25 Q1 Q2 Q3 Apr-Dec'12 50 -75 0 Q1 Q2 Q3 Apr-Dec'12 -125 -95 -50 -4 -39 -175 -225 -225 Borrowings Core Debt (INR./ bn) (INR./ bn) 600 1,000 545 949 909 500 906 900 850 383 400 319 297 800 300 200 700 Q1
Slide 44: Ongoing Projects
IOCL – An Overview Oil Industry In India IOCL’s Core Operations Strategic Initiatives Financial Performance Ongoing Projects Nine Months Snapshot 43
Slide 45: Capex Outlay
Capex Outlay Capital Expenditure Plan Capex Outlay: 2012-13 INR crore Refining *, 2011-12 2012-13* 8355 Plan Expenditure 11,073 10,000 Non Plan Expenditure 3,402 5,479 Total Pipelines, 14,475 15,479 960 * Budgeted Estimate Marketing, others, 311 230 Petrochemic als, 145 TOTAL CAPEX Outlay : Rs.10,00
Slide 46: Major ongoing projects
Major ongoing projects Anticipated Outlay Anticipated Projects-Refinery Objective (INR crore) Completion To meet domestic demand & export of surplus Paradip Refinery 29,777 Sep-Nov ‘13 product To increase processing capacity of unit from 1.3 to Fluidized Catalytic Cracking Unit at 1,000 1.5 MMTPA &
Slide 47: Thank You
Thank You