Bharat Petroleum Corporation Limited · NSE:BPCL
Bharat Petroleum — Investor Presentation (June 2018)
26 slides from Bharat Petroleum's investor presentation, June 2018
Slide 1: Bharat Petroleum Corporation Ltd. Investor Presentation
Bharat Petroleum Corporation Ltd. Investor Presentation June 2018
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 2,772 bn in MMT FY18 and INR 2,420 bn in FY17 FY18 41.2 Market Sales FY17 37.7 • India’s 2nd largest Oil Marketing Company (OMC) with FY16 36.5 domestic sales volume of over 41.21 MMT in FY18 and 37.68 FY15 34.5 MMT in FY17 FY14 34.0 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 26.5% market 26.2% market Currently 8,000+ 24.4% market 21% market 50+ major LNG of 35.5 MMTPA share1 share1 customers share1 in AT
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 2.81 2.73 3.10 3.20 2.68 25.00 2.61 2.78 2.52 Mumbai – 240 kbpd 14.29 20.00 13.41 13.60 13.03 12.96 15.00 Kochi – 310 kbpd** 10.00 1 1 .7 9 1 4 .2 5 5.00 1 0 .3 2 1 0 .4 0 1 0 .7
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 Vad
Slide 12: Marketing Operations and Efficiencies
Marketing Operations and Efficiencies SBU Market Sales (MMT) Retail Market Share of MS & HSD * 42.00 41.21 36.53 37.68 37.00 34.00 34.45 32.00 Retail 27.00 Lub es MS > 26.70% 22.00 Direct HSD > 26.70% 17.00 Aviation 12.00 LPG 7.00 2.00 (3.00) FY14 FY15 FY16 FY17 FY18 LPG Bottling Plant Capacity
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 71.71 89.98 FY14 FY15 FY16 FY17 FY18 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 296.68 341.52 273.23 1.4x 224.67 1.3x 1.3x 1.3x FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 EBITDA / Interest Total Debt / Equity 27.1x 22.7x 0.78x 0.68x 18.0x 17.6x 0.58x 0.58x FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Stable Earnings
Slide 18: Improved Financial Performance
Improved Financial Performance PAT (INR Billion)/ Networth (%) 100.00 27.10 30.00 25.82 23.19 Net Profit (Rs. bn) 80.00 25.00 20.87 22.63 Networth % 15.89 20.00 60.00 15.00 40.00 70.56 79.19 10.00 40.61 50.85 80.39 20.00 26.43 5.00 - 0.00 FY13 FY14 FY15 FY16 FY17 FY18 Profit after Tax (Rs. Bn) Netwo
Slide 19: BPRL’s Upstream Story over the years
BPRL’s Upstream Story over the years……. 2018 2017 2016 2015 2013 2012 Entry in Lower 2011 Zakum Declaration of Russian Commerciality 22 Acquisition approved in discoveries Operatorship Indonesia 2010 Schedule B (cumulative) block entry Lead operator 2009 Joint operator Shale gas 2008 entry Australia
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 Brazil Australia and East Timor BPCL BPCL Exploration Block Operator Partners BPCL Exploration Block Operator Partners Stake Exploration Block Operator Partners St
Slide 22: 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 23: Industry Overview
3. Industry Overview Corporate Overview Credit Highlights 23
Slide 24: 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 81.1 FY18 26.2 China 9 23.3 76.0 Brazil 15 FY17 23.8 21.5 Russia
Slide 25: 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 26: Thank You
Thank You