Bharat Petroleum Corporation Limited · NSE:BPCL
Bharat Petroleum — Investor Presentation (February 2017)
27 slides from Bharat Petroleum's investor presentation, February 2017
Slide 1: Bharat Petroleum Corporation Ltd. Investor Presentation
Bharat Petroleum Corporation Ltd. Investor Presentation February 2017
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 5th largest company by turnover over INR 1,891 bn in FY16 MMT and INR 2,379 bn in FY15 9MFY17 28.4 Market Sales FY16 36.5 • India’s 2nd largest Oil Marketing Company (OMC) with domestic FY15 34.5 sales volume of over 36.53 MMT in FY16 and 34.45 MMT in FY15 FY14 34.0 FY 13 33.3
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 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 Pipeline Pvt. S
Slide 8: 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 26.7% market 25.9% market Currently 7,000 23.4% market 20.4% market Currently 54 of 30.5MMTPA share2 share2 customers share2 in ATF
Slide 9: Business Overview
2. Business Overview Credit Highlights 9
Slide 10: BPRL’s Upstream Story over the years
BPRL’s Upstream Story over the years……. 2017 2016 2015 2013 2012 2011 Discoveries Russian notified in Operatorship 2010 22 Acquisition block Schedule B discoveries 2009 Lead (cum) & Joint operator Reserve Appraisal operator certification Wells 2008 Shale gas entry Australia 2007 Indonesia entry Braz
Slide 11: Upstream Global Spread
Upstream Global Spread 2 TAAS 9.86% Russia# 2 Vankorneft 7.88% Country Nos Name of Block PI% 24 Exploration Discoveries Block in Appraisal stage Producing Blocks 2 Cauvery Basin 20 % - 40% 1 Rajasthan 33.3% India 2 Cambay 25% 1 Assam-Arakan 20% 1 Mumbai Basin 20% Indonesia 1 Nunukan 12.5% East Timor
Slide 12: Global Upstream Footprint
Global Upstream Footprint Partnership with established Oil and Gas operators expected to generate optimal returns for BPCL. Within India Brazil Exploration Block Operator BPCL Stake Partners Exploration Block Operator BPCL Stake1 Partners NELP—IV BM-SEAL-11 Petrobras 20.0% Petrobras, Videocon CY/ONN
Slide 13: BPRL – Successful acquisition of TYNGD and Vankor assets in Russia in 2016
BPRL – Successful acquisition of TYNGD and Vankor assets in Russia in 2016 BPRL along with an Indian Consortium, TYNGD – Srednebotuobinskoe Field (2 Licenses) acquired: BPRL effective interest: 9.87% - Participatory shares representing 29.9% of the 2015 Oil Production: c.22 mbbl/d gross to the
Slide 14: Refining Coverage
Refining Coverage Installed Capacity Refining Throughput Refining Capacity 29.84* 28.55 * 29.24* 30.00 28.69* 2.73 3.10 3.20 2.86 Mumbai – 240 kbpd 25.00 2.48 2.61 2.78 2.52 20.00 13.10 13.03 12.96 13.41 15.00 Kochi – 190 kbpd 10.00 10.71 5.00 10.11 10.32 10.40 BORL – 120 kbpd - FY 13 FY14 FY15 FY16
Slide 15: 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 Vadi
Slide 16: Marketing Operations and Efficiencies
Marketing Operations and Efficiencies SBU Market Sales (MMT) Retail Market Share of MS & HSD * 34.00 34.45 36.53 35.00 33.30 31.14 30.00 25.00 Retail MS > 27.10% Lubes 20.00 Direct 15.00 Aviation HSD > 27.36% 10.00 LPG 5.00 - FY12 FY13 FY14 FY15 FY16 LPG Bottling Plant Capacity (TMTPA) Thru’put
Slide 17: 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 18: Ongoing projects
Ongoing projects – thriving to be self sufficient integrated source of fuel supply Integrated Refinery Expansion Project (IREP) at Kochi – Increasing refining capacity from 9.5 MMTPA to 15.5 MMTPA along with modernization of existing facilities to produce future quality fuels – Commissioning activ
Slide 19: 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 19
Slide 20: Capex Strategy
Capex Strategy Capital Expenditure 113.60 99.59 61.25 71.71 36.05 FY12 FY13 FY14 FY15 FY16 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 21: Improved Financial Performance
Improved Financial Performance Net Worth (INR bn) Total Debt / EBITDA 331.04 271.59 224.67 194.59 2.1x 1.3x 1.2x 1.1x FY14 FY15 FY16 9MFY17 FY14 FY15 FY16 9MFY17 EBITDA / Interest Total Debt / Equity 30.3x 1.0x 23.2x 18.0x 0.6x 0.6x 0.5x 7.0x FY14 FY15 FY16 9MFY17 FY14 FY15 FY16 9MFY17 Stable Earnin
Slide 22: Improved Financial Performance
Improved Financial Performance PAT (INR Billion)/ Networth (%) 80.00 27.36 35.00 70.00 30.00 Net Profit (Rs. bn) 60.00 22.63 25.00 Networth % 50.00 20.87 20.00 40.00 15.89 74.32 15.00 30.00 8.79 50.85 10.00 20.00 40.61 10.00 26.43 5.00 13.11 - 0.00 FY12 FY13 FY14 FY15 FY16 Profit after Tax (Rs. Bn)
Slide 23: 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 24: Industry Overview
3. Industry Overview Corporate Overview Credit Highlights 24
Slide 25: 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 Source: Oil Consumption from BP Statistical Review 2016,Population from W
Slide 26: Indian Oil Industry
Indian Oil Industry Sharing of Under Recoveries • Prices of retail sales of LPG and PDS Kerosene Oil are capped by the Government of India (GoI) • Under-recoveries shared among GoI, the public sector OMCs and the public sector upstream companies (ONGC, OIL and GAIL) • Under-recoveries determined and
Slide 27: Thank You
Thank You
Bharat Petroleum — Investor Presentation (February 2017) on 6ix