Indian Oil Corp. Ltd. · NSE:IOC
Indian Oil — Investor Presentation (June 2018)
23 slides from Indian Oil's investor presentation, Jun 1, 2018
Slide 1: 1st June 2018
1st June 2018 Strictly Private and Confidential
Slide 2: Indian Oil Corporation: The Future of India Energy
Indian Oil Corporation: The Future of India Energy ● Maharatna Company; GoI Control: 56.98% Strong Support from the ● Government nominated Directors on IOC Board Government of India ● Contribution to exchequer of INR 1969 bn in FY18 ● 11 refineries with 80.70 MMTPA Capacity Largest Refiner in the Co
Slide 3: Our Journey at a Glance
Our Journey at a Glance From a humble beginning to an Oil Giant FY18 31-Mar-18 31-Mar-18 120000.00 30000 27089 Turnover 110171 Retail 100000.00 25000 600000 506428 Net Worth Outlets 500000 (Rs./cr) 80000.00 (INR/Cr) 20000 400000 60000.00 15000 300000 40000.00 10000 200000 77.82 4482 20000.00 100000
Slide 4: Well Poised to Leverage Strong Industry Dynamics
Well Poised to Leverage Strong Industry Dynamics Low per Capita Oil Consumption Represents an India is Among the World’s Fastest Growing Economies Underpenetrated Opportunity… Consumption in million barrel per day GDP 2016 2017 2018 P 2019 P Growth 19.69 India 7.1% 6.7% 7.4% 7.8% 12.53 11.75 China 6
Slide 5: IOC - The Largest Refiner in India
IOC - The Largest Refiner in India Strategic Presence With Access to High Demand Markets Leader in Refining Market Share(1) Strategically 33% 28% placed with 17% 15% access to high 8% demand market of North India IOC Reliance ONGC BPCL Essar Oil Digboi Panipat Note: Figures as of March 31, 2018. Sou
Slide 6: Unparalleled Network of Cross Country Pipelines
Unparalleled Network of Cross Country Pipelines Largest Pipeline Market Share - Downstream High Capacity Utilization % 99 94 91 Others Others 73 69 Others 76 27% IOC 43% IOC, 50% IOC 50% 57% 73% 125 119 105 Product Pipelines Total Pipelines FY 16 FY 17 FY 18 Crude Oil Pipelines Crude Product Source:
Slide 7: Extensive Network of Cross Country Pipelines
Extensive Network of Cross Country Pipelines Length Capacity (KM) Crude Oil 5,301 48.60 Pipelines MMTPA Product Pipelines 7,950 46.20 MMTPA Jalandhar Gas Pipelines 140 9.5 Bhatinda Ambala MMSCMD(1) Sangrur Total 13,391 -- Roorkee Najibabad Panipat Meerut Rewari Delhi Dadri Tinsukia Sanganer Mathura
Slide 8: Marketing: Reach in Every Part of the Country
Marketing: Reach in Every Part of the Country Pan India Presence with Multiple Consumer Touch Points Leader in Market Infrastructure Others 323(1) LPG Distributor 49% 53% SKO / LDO 57% 10,213 Dealerships 3,897 Over 48,170 Customer touch-points 51% 47% Retail Outlets Bulk Consumer 43% 27,089 Pumps 6,
Slide 9: Fuelling India's Growth
Fuelling India’s Growth Domestic POL Sales (MMT) 77.1 72.6 74.1 4% 10.8 9.2 2% 10.1 LPG 10.1 10.9 Naphtha 9.5 MS 4.6 3.6 2.6 ATF SKO HSD 36.5 FO/LSHS 35.8 35.4 Bitumen Lubes Others 3.1 3.3 3.2 2015-16 2016-17 2017-18 Seamlessly started BS-VI fuel supply to Delhi NCT on 1st April 2018 9
Slide 10: Moving Beyond the Traditional Value Chain
Moving Beyond the Traditional Value Chain Petrochemicals Gas LAB Sourcing PX / PTA Marketing Polymers, Glycols LNG Terminals Butadiene, SBR CGD Moving Beyond the Globalization Value Exports E&P Chain Consultancy Domestic Overseas Training Operatorship Downstream Marketing ^ RE&SD Wind, Solar
Slide 11: One of the Leading Producer of Petrochemical Products
One of the Leading Producer of Petrochemical Products Capacity Sales Breakup (in INR/Cr) Project Capacity (MT) Total: 19297 Total: 20222 Total: 18531 Guajarat LAB 120,000 1730 1416 1633 Styrene Butadiene 120 KTA Rubber Plant 14245 14275 13681 Panipat Px / PTA 553,000 2576 2835 1835 1030 1412 1382 Pa
Slide 12: Upstream Portfolio
Upstream Portfolio Blocks’ Location Reserves & Production 2.00 1250 Domestic 1.60 1000 1 2 5 1 9 Blocks 1.20 750 2.66 Overseas 0.80 500 2 1 7 10 Blocks 1.45 0.40 250 Exploration 0.47 Discovery 0.00 0 Appraisal 2015-16 2016-17 2017-18 Under Development 2P Reserves (MMboe) Production Production (MMToe
Slide 13: Recent Acquisitions
Recent Acquisitions Location Oman Location Abu Dhabi Block Mukhaizna Block Lower Zakum Operator Occidental Operator ADNOC Reserves 0.6 billion boe Reserves 5.1 billion boe Production 120 kb/d Production 400 kb/d IOC Stake 17% IOC Stake 3% IOC Equity Oil 20 kb/d IOC Equity Oil 12 kb/d 13
Slide 14: Diversified Across Geographies and Energy Sources
Diversified Across Geographies and Energy Sources Geographical Diversification Diversification Across Sources ● JV for City Gas Distribution with Gas presence in 9 Cities • Aviation, terminal & IndianOil retail business Mauritius ● 5 MMTPA LNG import, storage and re- Ltd. (IOML) • 24,000 MT Storage
Slide 15: INDMAX – A New Era
INDMAX – A New Era INDMAX: INDane MAXimization IndianOil R&D’s “Make In India” Initiative Indigenously developed technology to bridge India’s LPG Deficit Over 2 times LPG yield over regular FCC Flexibility to cater to Seasonal Demand: LPG/ MS/ HSD Mode High Octane MS (97-98 RON) production 15 INDMAX
Slide 16: OCTAMAX
OCTAMAX BS-VI Push • Produces BS-VI compliant MS • Instrumental in BS-VI MS supply to Delhi NCT Plant at Mathura Refinery • 55 TMTPA unit installed • Commissioning: 29th January 2018 Features • Upgrades C4 Stream to MS • Produces High Octane (~120 RON) MS feed Indigenous Technology • Developed by In
Slide 17: R&D Prowess
R&D Prowess • Technology Commercialisation 35 TMTPA INDAdeptG Plant Indigenous In-Line Pipeline Indigenously Developed at Guwahati Refinery Inspection Tool Delayed Coker at Barauni • 2nd R&D Campus – Upscaling Thrust Areas CO2 Refining Research Technology Pipeline Catalysts IndianOil R&D Research of
Slide 18: Investing In Future Growth
Investing In Future Growth Major Ongoing Projects Planned Capital Expenditure Outlay (1) (2018-19) (INR/Cr.) Estimated Cost Others, 5% Project (Rs Crore) Petchem, 11% Polypropylene unit at Paradip 3,150 Refining, 43% DYIP Coker, Haldia 4,190 BS-VI Projects 16,600 INDMAX unit at Bongaigaon 2,580 Para
Slide 19: Experienced Management Team & GOI Ownership and Support
Experienced Management Team & GOI Ownership and Support Management Team Contribution to Exchequer (in INR/Cr) Sanjiv Singh Handled all aspects of refining activities. Chairman Previously headed the refinery division. Also 189861 35+ Year Experience worked with centre for High technology and with 1
Slide 20: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Turnover (in INR/Cr) EBITDA (%) Others 5,06,428 Petchem 4% 4,57,571 4,50,756 4,45,373 14% 4,06,828 Refining Pipelines 48% 15% Marketing FY 14 FY 15 FY 16 FY 17 FY 18 19% Contribution to FY18 EBITDA Net Profit (in INR/Cr) and Dividends (%) EBITDA (in INR/Cr) 30%
Slide 21: Our Differentiators: Strong Financials
Our Differentiators: Strong Financials Net Worth (in INR/Cr) Cash breakdown & Debt (in INR/Trillion) 1,10,171 99,729 88,134 0.03 65,992 67,970 0.19 0.1 0.86 0.10 0.01 0.08 0.09 0.10 0.12 0.12 0.11 0.55 0.55 0.58 0.11 0.53 0.12 0.26 0.25 0.25 0.25 0.18 FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16
Slide 22: Conclusion
Conclusion India’s Largest Oil Company …Focused on Creating Shareholder Value 1 Largest Refiner in the Country 2 Pan-India Pipeline Infrastructure 3 Leading Market Share Across the Portfolio 4 Integrated Operations Across the entire Energy Value Chain 5 Strong Focus on Innovation Through R
Slide 23: Key Risk Factors
Key Risk Factors Fluctuations in commodity prices (e.g. crude oil) Fluctuation in exchange rates (INR – US$) Fluctuations in global petroleum product prices 23