Indian Oil Corp. Ltd. · NSE:IOC
Indian Oil — Investor Presentation (April 2010)
31 slides from Indian Oil's investor presentation, Apr 28, 2010
Slide 1: Bankers Meet
IndianOil Bankers Meet 28 April 2010
Slide 2: IOCL – An Important Pillar in Indian Economy
IOCL – An Important Pillar in Indian Economy Oil Industry In India IOCL – An Overview IOCL’s Core Operations Strategic Initiatives Financial Performance Ongoing Projects 1
Slide 3: IOCL – An Important Pillar in Indian Economy
IOCL – An Important Pillar in Indian Economy India’s largest commercial enterprise and flagship national oil company and downstream petroleum major Fortune Ranking First Rank Indian corporate in Fortune Global 500 – ranked 105 in 2009 Revenues of Rs 285,000 crore (approx. USD 62 Billion) Maj
Slide 4: Accolades
Accolades #33 in Platts Top 250 Global Energy Rankings 2009 #1 in BW Real 500 Rankings – Business World, November 2009 #1 in “ET 500” – Economic Times listing of India's corporate giants for 2009 SCOPE MoU Excellence Award in the Petroleum Sector during FY2010 “Most Trusted Brand” – Reader
Slide 5: Oil Industry In India
IOCL – An Important Pillar in Indian Economy Oil Industry In India IOCL – An Overview IOCL’s Core Operations Strategic Initiatives Financial Performance Ongoing Projects 4
Slide 6: 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 Indian Oil Corporation Ltd. 2 DOWNSTREAM Hindustan Petroleum Corporation Ltd. (HPCL) (Refining, Marketing & Pipelines) Bharat P
Slide 7: Growth of Petroleum Products
Growth of Petroleum Products 140 Consum ption (MMT) 13 3 12 9 130 12 1 120 113 112 110 10 8 100 FY04 FY05 FY06 FY07 FY08 FY09 Over the last 5 years, consumption of petroleum products grew at CAGR of 4.36% Source: Petroleum Planning & Analysis Cell, Ministry of Petroleum & Natural Gas, Govt. of India
Slide 8: IOCL – An Overview
IOCL – An Important Pillar in Indian Economy Oil Industry In India IOCL – An Overview IOCL’s Core Operations Strategic Initiatives Financial Performance Ongoing Projects 7
Slide 9: Overview of Operating Structure
Overview of Operating Structure …. also into Petrochemicals, E&P, Gas and Wind Power 8
Slide 10: IOCL’s dominance in Downstream Oil sector
IOCL’s dominance in Downstream Oil sector Refining – % Share Products Pipelines - %Share Industry Capacity – 177.97 MMT Industry Capacity – IOCL 62.34 MMT Private 34% PIL Refiners 8% 41% HPCL 21% IOCL 54% BPCL 17% ONGC BPCL HPCL 5% 13% 7% Petroleum Products Market – % Share Industry Size – 133.40 MM
Slide 11: IOCL’s Core Operations
IOCL – An Important Pillar in Indian Economy Oil Industry In India IOCL – An Overview IOCL’s Core Operations Strategic Initiatives Financial Performance Ongoing Projects 10
Slide 12: Refining – Portfolio
Refining – Portfolio Controls 10 Refineries spread across the country (60.20 MMT – 34% of Industry) Digboi Refining Industry Capacity 177.97 MMTPA Panipat IOCL’s share of Total Capacity 34% Mathura Bongaigaon Numaligarh IOCL’s share among PSUs 57% Barauni Guwahati Only company to have presence i
Slide 13: Refining – Operating highlights
Refining – Operating highlights 51.37 50.7 103.38 102 75.20 75.20 47.40 100.11 73.80 FY08 FY09 FY10 FY08 FY09 FY10 FY08 FY09 FY09 Refinery Throughput (MMT) Capacity Utilization (%) Distillate Yield (%) Strategic inland refinery locations with most effective supply and evacuation system through pip
Slide 14: Wide Network of Cross Country pipelines
Wide Network of Cross Country pipelines 10,329 Kms of crude & product pipelines (capacity 71.61 MMT) Length Capacity Market Share (KM) (MMTPA) Downstream Crude Oil 4,366 38.20 100% Pipelines Product 5,963 33.41 54% Pipelines Provides low cost crude transportation to all of the Company’s refineri
Slide 15: Pipelines – Operating highlights
Pipelines – Operating highlights 59.62 63.98 57.13 95.76 22.58 Product 88.06 21.38 86.17 21.27 41.40 Crude 35.86 38.24 FY08 FY09 FY10 FY08 FY09 FY10 Pipelines Throughput (MMT) Capacity Utilization (%) Highest ever throughput achieved by IOCL’s pipelines in FYE 2010. An increase of 7.31% over previ
Slide 16: Marketing – Reach
Marketing – Reach Bulk Consumer Pumps 7,593 About 35,000 touch points (55% of industry) Retail Outlets 18,643 Cross country retail network comprising of 18,643 (47%) outlets LPG Bottling Continued Rural thrust : 2,947 Plants 89 Kisan Seva Kendras LPG supply to over 56 million About 35,000 ho
Slide 17: Marketing – Operating highlights
Marketing – Operating highlights 68.9 66.2 % 4. 1 4.2 % 3.6 62.6 5. 7 Export 3.3 64.7 Inland 62.6 59.3 (MMT) FY 08 FY 09 FY 10 Market Leader – dominant domestic market share (petroleum products): 46% Highest ever sales of about 69 MMT of petroleum products registering 4.1% growth over previous y
Slide 18: 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 sales growth is insulated from the cyclical demand fluctuations due to diversified customer base
Slide 19: R&D Providing The Cutting Edge
R&D Providing The Cutting Edge Lube formulations – 181 developed, 147 commercialized, 65 approvals obtained from user Industries / OEMs Deployment of in-house technologies Trials of DHDT Catalyst INDICAT-DH-IV for EURO IV quality Diesel progressing well in CPCL since May 2009. High Metal Tol
Slide 20: Strategic Initiatives
IOCL – An Important Pillar in Indian Economy Oil Industry In India IOCL – An Overview IOCL’s Core Operations Strategic Initiatives Financial Performance Ongoing Projects 19
Slide 21: Spreading the Wings – E&P and Petrochemicals
Spreading the Wings – E&P and Petrochemicals Forward Integration into Petrochemicals Petrochemical plants at Gujarat, Panipat and Bongaigaon Petrochem Turnover: Rs 2760 crore (FYE 2009) LAB sales 126 TMT (No.1 in Domestic Market : about 34% share) Export 19 TMT to 13 countries Footprint in M
Slide 22: Diversification in Other Energy Sources
Diversification in Other Energy Sources Gas – LNG / CNG Wind Power, Biofuels & Solar Energy Gas Turnover: Rs 2425 crore in FYE 2009 Wind Power Gas sales of 1.89 MMT in FYE 2010 as Commissioned 21MW plant at Kachchh, against 1.7 MMT in FYE 2009, Gujarat in Jan 09 Franchise Agreements with Cit
Slide 23: Strides Beyond Borders
Strides Beyond Borders Sri Lanka Lanka IOC Ltd. started retailing operations in February 2003 Largest private sector company in Sri Lanka, with healthy growth in sales: Diesel sales up 18.7%, Lube Sales up 18% Share in bunkering business: 41% Overall Market Share: 20% Mauritius Indian
Slide 24: Financial Performance
IOCL – An Important Pillar in Indian Economy Oil Industry In India IOCL – An Overview IOCL’s Core Operations Strategic Initiatives Financial Performance Ongoing Projects 23
Slide 25: Strong Results Against Odds
Strong Results Against Odds Turnover (Rs Thousand Crore) Net Profit (Rs Thousand Crore) CAGR 15.91% ( FY 06 to FY 09) 300.0 285 7.5 7.50 6.96 247 221 225.0 199 4.92 4.66 183 4.5 150.0 2.95 75.0 1.5 FY06 FY07 FY08 FY09 FY10 (Dec09) FY06 FY07 FY08 FY09 FY10 (Dec09) EBITDA (Rs Thousand Crore ) Net Wort
Slide 26: Strong Financials with Conservative Capital Structure
Strong Financials with Conservative Capital Structure Debt/Equity 1.02 0.9 0.86 0.78 0.91 FY06 FY07 FY08 FY09 FY10 (Dec09) Debt/EBITDA 3.97 2.66 2.48 3.43 1.85 FY06 FY07 FY08 FY09 FY10 (Dec09) Conservative gearing – Debt to Equity of 0.91:1, Debt to EBITDA of 3.43:1 25
Slide 27: Investments vis-à-vis Debt
Investments vis-à-vis Debt 50 Rs Thousand Crore 45.0 42.3 42.8 44.4 45 40 36.2 35.5 35 31.5 30 27.1 25 20 15 10 5 0 FY07 FY08 FY09 FY10(Dec09) Investments * Debt Substantial Investments vis-à-vis debt Net of Investments : Virtually a Debt Free Company * Investments include Market Value of shares
Slide 28: Compensation of Under Realization
Compensation of Under Realization Rs Thousand Crore Oil Bonds / Budgetary Support # 60.1 Discount from Refiners Discount from Upstream Companies Subsidy from the GOI 44.6 Net Under Realization TOTAL GOVT. 40.4 OF INDIA 19.0 SUPPORT 30.1 13.9 17.9 14.3 0.6 4.5 1.5 18.2 4.3 11.9 1.2 9.8 7.9 1.5 2.2 1.
Slide 29: Ongoing Projects
IOCL – An Important Pillar in Indian Economy Oil Industry In India IOCL – An Overview IOCL’s Core Operations Strategic Initiatives Financial Performance Ongoing Projects 28
Slide 30: Major Ongoing Projects & Outlay
Major Ongoing Projects & Outlay Major Ongoing Planned Projects Project Estimated Cost Anticipated Capex Outlay: 2010-11 (Rs Cr) Completion Residue up gradation & MS/HSD 6989 Jun-10 Quality improvement at Gujarat MS quality up gradation at Barauni 1492 Jun-10 Refining *, 8680 MS quality up gradation
Slide 31: Thank You
IndianOil Thank You