GAIL (India) Limited · NSE:GAIL
GAIL (India) — Investor Presentation (May 2015)
29 slides from GAIL (India)'s investor presentation, May 28, 2015
Slide 1: GAIL (India) Ltd. Investors' & Analysts' Meet
GAIL (India) Ltd. India’s Youngest Maharatna Investors’ & Analysts’ Meet May 28, 2015 Mumbai 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by GAIL (India) Ltd (Company or GAIL) solely for providing information about the Company. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historic
Slide 3: Table of Contents
Table of Contents 1. Introduction 1 2. Performance Highlights 2 3. Industry outlook & Strategy 3 3
Slide 4: 1. Introduction
GAIL (India) Ltd. India’s Youngest Maharatna 1. Introduction 4
Slide 5: An Introduction
An Introduction • Over 11,000 Km of network • Sophisticated Gas management System Natural Gas • Pursuing for expansion, Participation in RGPPL ( 5 MMTPA LNG Regasification Facility) • Long-term Import Portfolio: 24 MMTPA • Domestic market share ~ 15% • Petrochemical Plant in Pata( UP) with capacity
Slide 6: Energized Performance
Energized Performance First PSU to acquire shale gas Birth of GAIL : NG Trans & Mktg. acreage in US Achieved Maharatna Status Company Subsidiary in US Commissioned Dabhol Terminal & Dabhol Signed Henry Hub linked LNG deal Bangalore Natural Gas Pipeline August 16, 1984 Capacity Booking in
Slide 7: Shareholding Structure
Shareholding Structure Top Shareholders other than GoI % Shareholding Others, 7.28% GDRs, 1.41% LIC 9.15 % FIIs, 18.80% ONGC 4.83 % IOCL 2.41 % IOC, 2.42% President of LIC, India, 56.11% Matthews Pacific Tiger Fund 1.91 % ONGC, 4.83% 9.15% LIC P&GS Fund 1.41 % Listed on BSE : 15th May 1997/ Share Pr
Slide 8: 2. Performance Highlights
GAIL (India) Ltd. India’s Youngest Maharatna 2. Performance Highlights 8
Slide 9: Major Highlights of FY15
Major Highlights of FY15 Sales Turnover - `56,569 Cr Profit After Tax - `3,039 Cr Subsidy shared `1000 Cr towards under-recoveries of OMCs Capitalization of Petrochemical Project in Mar’15 - `6842 Cr Long Term Borrowing - `500 Cr (INR Bonds) Loan Repayments - `1646 Cr incl. Prepayments of `900 Cr Av
Slide 10: Physical Performance
Physical Performance Gas Volume Trend (MMSCMD) Gas Transmission Mix Gas Marketing Mix Gas Transmission Gas Marketing (in MMSCMD) (in MMSCMD) 118 118 105 96 92 9 7 - 83 84 5 81 79 72 FY15 46 20 FY15 33 46 APM/NAPM RLNG incl Sport & Mid Term PMT RIL FY11 FY12 FY13 FY14 FY15 (TMT) Petrochemicals Sales
Slide 11: Gas Sourcing & Sector Wise Supply – FY15
Gas Sourcing & Sector Wise Supply – FY15 (MMSCMD, % share) 20 MMSCMD 27% 1 73% 10 52 MMSCMD 21 1 13 5 9 5 2 2 3 Fertilisers Power CGD for CNG & Petrochemicals Gas Based LPG Others* PNG Domestic RLNG Imported Gas primarily consists of Long Term RLNG, Mid Term RLNG and Spot Major sources for domes
Slide 12: Financial Performance (Standalone)
Financial Performance (Standalone) Sales (net of ED, in ` Cr.) Gross Margin* (PBDIT, in ` Cr.) 7945 57245 56,569 7,234 47,333 5,973 6,247 5,620 40,281 32,459 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 PBT* ( in ` Cr.) PAT ( in ` Cr.) 4375 6402 4,022 6,058 3,654 3,561 5,240 5,340 3,039 4,284 F
Slide 13: Segment-Wise Breakup – FY15
Segment-Wise Breakup – FY15 (` in Cr.) (%) 1% 9% 5053 746* Turnover (Net of ED) 8% 4595 1% 3049 440 42686 5% 76% ` 56569 Cr 2% 16% Profit before Tax 1932 105* 45% 140 242 28% 1180 685 ` 4284 Cr 6% 3% Liquid Unallocated incl. Gas Marketing NG Transmission LPG Trans Petrochemicals Hydrocarbons E&P 13
Slide 14: Major Variance in Profitability – FY14 vs. FY15
Major Variance in Profitability – FY14 vs. FY15 Negative Variances • Increase in Gas & Power cost of Petrochemicals by ~ ` 1550 Cr • Decrease in Average LHC Prices led to a negative impact of ~ ` 1130 Cr. • Decrease in Profitability of Gas marketing Segment by ~ ` 910 Cr • Impact of retrospective PN
Slide 15: Balance Sheet – 31.03.2015
Balance Sheet – 31.03.2015 (` in Cr.) Share Capital Reserves & Surplus Borrowings* Deferred Tax Liab. 1268 27851 9556 3309 Capital Employed 41,984 Tangible Intangible Equity CWIP Others Assets Assets Investments 4360 5542 27016 744 4322 NG Pipelines incl. Comp. 24885 Linepipes & 2442 Working capital
Slide 16: Financial Profile
Financial Profile Gross Block (in ` Cr.) Capital Employed ( in ` Cr.) Net Worth (in ` Cr.) 41,389 41,984 39,907 35,591 28,888 34,056 26,858 31,149 24,038 28,741 26,307 21,449 22,144 23,197 19,054 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Loans* ( in ` Cr.) Debt to Eq
Slide 17: Financial Performance on Consolidated basis
Financial Performance on Consolidated basis (` in Cr.) Sales(net of ED) Gross Margin (PBDIT) 9235 8,314 61,644 60,515 7,762 7,055 50,893 6,577 44,058 35,107 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Profit before Tax Profit after Tax 6,922 6,355 6,558 4786 5,799 4,444 4,374 4,021 4,492 3,160
Slide 18: Estimated Capex & Borrowings
Estimated Capex & Borrowings (` in Cr.) FY14-15 FY15-16 ` 1633 Cr ` 2440 Cr 27, 2% 200, 145, 9% 8% 355, 22% 34, 2% 640, 26% 1300, 53% 1072, 65% 300, 13% Pipeline Equity Contribution Petrochemical E&P Others Estimated Borrowings during FY15-16 – ` 1000 Cr 18
Slide 19: 3. Industry Outlook & Strategy
GAIL (India) Ltd. India’s Youngest Maharatna 3. Industry Outlook & Strategy 19
Slide 20: Natural Gas Outlook to 2040
Natural Gas Source: Energy Outlook 2014 EXXON Mobil 2014 By 2040 2 Billion more people on the planet 130 percent larger global economy about 35 percent greater demand in energy non-OECD countries Like China & India will lead the growth in energy demand about 60 percent of demand supplied by Oil & Na
Slide 21: Incremental Growth in Energy & Natural Gas Demand
Incremental Growth in Energy & Natural Gas Demand Incremental Energy Demand Outlook (MTOE) Projected India’s Sectoral 7,000 Demand of Natural Gas 15435 15847 16076 17196 17871 18314 18633 (MMSCMD) 6,000 5,000 2030 4,000 3,000 32 54 2,000 1,160 1,355 228 807 974 1,000 510 595 647 116 - 2010 2013 2015
Slide 22: Diversified Gas Sourcing
Diversified Gas Sourcing Russia-Gazprom 2.5 MMTPA US-Henry Hub 2019/20-2038/39 Cheniere & Dominion : 5.8 MMTPA Turkmenistan 2017/18-2036/37 38 MMSCMD(10.6 MMTPA) Qatar 2019/20-2048/49 4.5 of 7.5 MMTPA until 2027/28 Nigeria Regas-Capacity 0.75 MMTPA 2013-15 2.5 MMTPA-Dahej 5.0 MMTPA- Dabhol Portfolio
Slide 23: Rising Petrochemical business
Rising Petrochemical business Shaping Growth of Petrochemicals in India* CAGR of growth in $40 billion Indian Petrochemicals industry ~ 14 % Indian Petrochemicals industry likely to reach $100 billion by 2020 India’s per capita consumption of polymers ~ 5.2 kilograms vs. China per capita consu
Slide 24: Major Projects (On-going & Upcoming)
Major Projects (On-going & Upcoming) Vijaipur Auriya P/L** (VAPPL) PATA PETCHEM EXPANSION Length-:- 672 Km, Cost-:-Over `4500 Cr. Cost-:-Over ` 8000 Cr. Cap-:- 8.9 MMSCMD Cap-:- 0.4 MMTPA JAGDISHPUR-HALDIA PIPELINE** Length-:- 1850 Km, Poly Butadiene Rubber Cost-:-Over `11000 Cr. Cap-:- 16 MMSCMD Co
Slide 25: E&P: Vertical Integration
E&P: Vertical Integration Net Sales & PBT (in ` Cr.) Balanced Portfolio with Participation in 15 Blocks, GAIL is FY11 FY12 FY13 FY14 FY15 Operator in 3 on-land blocks. 663 244 193 41 81 78 Appraisal (2) Development -98 -21 Exploration -203 -137 (1) Sales PBT (8) Production Crude Production1 (in ‘000
Slide 26: Policy Reforms in Power & Fertilizer Sector
Policy Reforms in Power & Fertilizer Sector SCHEME FOR UTILISATION OF GAS BASED POWER GENERATION CAPACITY • GAIL appointed as the e-bid RLNG operator and sole importer of LNG for supply of RLNG to the Power Plants under this scheme. • Scheme envisages sacrifices from Stakeholders - 50% transportatio
Slide 27: Way Forward & Action Taken
Way Forward & Action Taken Way Forward Actions Upstream Upstream • Long-term Import Portfolio: 24 MMTPA • Thrust on global sourcing & acquisitions (13.2 - LNG /Sea Route, 10 - Cross Border • LNG from traditional sources & equity linked pipeline / Land route) LNG; Renewal of expiring sourcing contrac
Slide 28: Thank You
GAIL (India) Ltd. India’s Youngest Maharatna Thank You 28
Slide 29: Our Touch Points
Our Touch Points For Institutional Investors For Retail Investors & Analysts Shri R C Gupta, Shri N K Nagpal, Executive Director (Finance & Accounts) Company Secretary E-mail ID: rcgupta@gail.co.in E-mail ID: nknagpal@gail.co.in GAIL (India) Ltd. India’s Youngest Maharatna 16, Bhikaiji Cama Place, R