GAIL (India) Limited · NSE:GAIL
GAIL (India) — Investor Presentation (May 2014)
32 slides from GAIL (India)'s investor presentation, May 2014
Slide 1: Analyst Presentation May 2014
Analyst Presentation May 2014
Slide 2: Disclaimer
• 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 historical information or
Slide 3: Vision and Mission
Vision Be the leading company in natural gas and beyond with global focus, committed to customer care, value creation for all stakeholders and environment responsibility Mission To accelerate and optimize the effective and economic use of Natural Gas and its fractions to the benefit of the national
Slide 4: Key Highlights: Strategic Position, Value Chain, Financial Position
Global • Wholly owned subsidiaries in Singapore and USA for pursuing overseas Presence business opportunities in LNG, Petrochemical trading and Shale Gas asset Key Strategic • Largest Natural Gas Marketing & Transmission Company in the country. position in India’s • Received Oil & Gas Company of the
Slide 5: Rankings and Credit Ratings
Asia’s No. 1 Gas Utility* India’s No. 1 World’s No. 1 Natural Gas Downstream Company Company* . AAA - Highest domestic credit rating from ICRA, CARE and CRISIL Corporate issuer rating of Baa2 by Moody's International and BBB- by Fitch Rating Externally assured Sustainability Report - ‘Level A+’ as p
Slide 6: Shareholding Pattern
10.34 GoI Government of India LIC 17.35 is GAIL’s majority GDRs shareholder 2.42 56.11 ONGC 4.83 7.56 IOC 1.40 FIIs Others Note: Government of India diluted its shareholding from 57.34% to 56.11% for CPSE ETFs during FY14 GAIL (India) Limited Tomorrow is Yours 6 India’s Youngest Maharatna With the e
Slide 7: Presence Across the Natural Gas Value Chain
Natural Gas Liquids Petro- Exploration & Power & chemical Development City Gas Renewables Distribution - Over 10,900 - 7 Gas kms of Visible Processing - Domestic network units - As part of - Serving 2 - Commission market - Expanding to across producing vertical Mn+ ed 115MW share – LPG, vehicles & ~
Slide 8: Business Segments, Subsidiaries and Joint Ventures
Business Segments Natural Gas Natural Gas Liquid LPG Petrochemical Unallocated* Transmission Trading Hydrocarbons Transmission Subsidiaries - 4 GAIL (Global) USA Inc. GAIL (Global) Singapore Brahmaputra Crackers GAIL GAS (100%) (100%) Pte (100%) & Polymers Ltd (70%) Joint Ventures - 12 CGD PLL GAIL
Slide 9: Performance Highlights FY13-14
India's No.1 Natural GAIL (India} Limited GAS Comp;any lndl• 's Youngtit M•h.ara-tn.. Perforrnance Highlights- FY13-14
Slide 10: Highest Ever Turnover and Other FY14 Highlights
Highest Ever Turnover `57,245 Cr – YoY Highest Ever `4,375 Cr – YoY Subsidy shared ` towards under-recoveries of OMCs Maiden Gross revenue of ` from Myanmar Blocks Cash Capital Expenditure of over ` Loan drawn* - ` (ECA/ECB - ` 501 Cr) Average for FY14 over ` Average for FY14 over ` * excluding Brid
Slide 11: FY14 Financial Highlights
Provision for Kochi Mangalore Bangalore Pipeline – ` during FY14 ` Increase in during FY14 by 20% at ` Increase in during FY14 by 88% at ` during the year ` is more than ` during FY14 difference capitalized is ` GAIL (India) Limited Tomorrow is Yours 11 India’s Youngest Maharatna With the eco-friend
Slide 12: Gas Transmission, Marketing, LPG, Petrochemicals and OLHC Volumes
Gas Transmission Gas Marketing LPG Transmission (MMSCMD) (MMSCMD) (TMT) 83 84 3,362 118 118 3,337 81 105 3,145 96 79 3,136 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 Petrochemicals LPG OLHC (TMT) (TMT) (TMT) 448 1,125 316 445 300 296 1,073 1,075 427 277 420 1,030 FY11 FY12 FY13 FY14
Slide 13: Standalone Sales, PBDIT, PBT and PAT
Sales (Net of ED) Gross Margin (PBDIT) (` in Crores) (` in Crores) 57,245 47,333 7,945 40,281 7,234 5,973 6,247 32,459 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 PBT PAT (` in Crores) (` in Crores) 4,375 6,402 4,022 6,058 3,561 3,654 5,240 5,340 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 GAIL (India) Limi
Slide 14: Consolidated Gross Sales, PBDIT, PBT and PAT
Gross Sales Gross Margin (PBDIT) (` in Crores) (` in Crores) 62,599 9,235 51,737 7,762 8,314 44,736 7,055 35,665 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 PBT PAT (` in Crores) (` in Crores) 4,786 6,922 4,444 4,374 6,558 6,355 4,021 5,799 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 GAIL (India) Limited To
Slide 15: Segment-wise Breakup of Turnover and Profit Before Tax
Segment-wise Breakup of Turnover - `57,245 Cr (` in Crores, %) 377 , 1% 3,828 , 7% 5,462 , 9% 418 , 1% 4,537 , 8% Segment-wise Breakup of Profit Before Tax - `6,402 Cr 476 , 7% (` in Crores, %) 1,706 , 1,034 , 27% 16% 42,623 , 74% 214 , 3% 1,374 , 22% 1,598 , 25% NG Transmission LPG Transmission NG
Slide 16: Balance Sheet
(` in Cr.) Equity & Liabilities Assets 49811 49811 Shareholders’ Non Current Current Non Current Assets Current Assets Funds Liabilities Liabilities 38561 11250 27072 13268 9471 Long Term Trade payables Inventories Share Capital Borrowings 3975 Fixed Assets 2255 1268 9526 Other Current 31205 Trade R
Slide 17: Dividend Received from Subsidiaries, JVs and Investments
(` in Cr) Dividend Companies FY14 upto FY14 – FY14 1 GAIL Global (Singapore) 10 2 BCPL 793 3 GAIL Gas Limited 12 266 4 CGD JVs 182 99 5 OPAL 361 996 6 PLL 99 23 7 RGPPL 974 8 China Gas Holdings Limited (39) 97 13 9 Fayum Gas, Egypt 8 10 GSEG 21 11 ONGC 556 200 12 GIPCL 1 0.14 13 SEAGP 106 14 GAIL Gl
Slide 18: Capital Employed, Net Worth and Debt Ratios
(` in Crores) Particulars FY13 FY14 Capital Employed 35,591 39,907 Gross Block 31,149 34,056 Net Worth 24,038 26,858 Loan Outstanding 9,064 10,268 Debt : Equity Ratio 0.38:1 0.38:1 DSCR (X) 5 4 Strong Balance sheet position GAIL (India) Limited Tomorrow is Yours 18 India’s Youngest Maharatna With th
Slide 19: Total Loan Outstanding
Total Loan Outstanding : `10,268 Cr Domestic : `4680 Cr ($772mln) Foreign Currency : $922mln (` 5588 Cr) • ECA maturity 5 years 900 2330 1450 • ECA maturity 7-10 years 19% 50% 31% 54% 46% • OIDB & Bonds fixed Int. Rate 3202 2302 85 • OIDB maturity 5 years and • Others 10 years 57% 41% 2% Term Loan O
Slide 20: Industry Outlook & GAIL's Strategy
India's No.1 Natural GAIL (India} Limited GAS Comp;any lndl• 's Youngtit M•h.ara-tn.. Industry OL1tlook & GAIL's Strategy
Slide 21: Gas Supply by GAIL: Anchor and Growing Markets
Gas Supply by GAIL during FY14 ~ 79 MMSCMD 11% 3% 31% 11% 9% 3% 32% Power Fertiliser LPG Petrochem+Refineries City Gas/CNG Steel Others Power and Fertilizer - Anchor Markets Industrial and City Gas - Growing Markets 21
Slide 22: Gas Supply Mix and Volumes
(MMSCMD) 52 51 104 MMSCMD 96 MMSCMD APM/Non-APM 30 31 RLNG 17 RIL 10 5 4 PMT FY13 FY14 52 51 81 MMSCMD 79 MMSCMD APM/Non-APM RLNG 19 21 PMT 9 7 Others 1 0 FY13 FY14 22
Slide 23: Long-term LNG Import Portfolio
Russia- Gazprom 2.5 MMTPA 2019/20 – 2038/39 US – HH (Cheniere & Dominion) Turkmenistan 5.8 MMTPA 38 MMSCMD (10.6 MMTPA) 2017/18 - 2036/37 2019/20 – 2048/49 Qatar 4.5 of 7.5 MMTPA Until 2027/28 Nigeria – GNF Regas-Capacity: 0.75 MMTPA 2.5 MMTPA – Dahej 2013-2015 5.0 MMTPA - Dabhol Yemen – GDF 0.36 MM
Slide 24: Domestic Supplies and LNG Cargoes
Domestic Supplies • Expected to increase by ~4 MMSCMD by end of FY15 LNG cargoes at Dabhol / Dahej cargos • No of cargos received in FY14 : 26 cargos • Expected cargos in 2014-15 : 34 cargos Henry hub linked volumes • Total volumes – 5.80 MMTPA • Quantity to be sold primarily in domestic market • Pa
Slide 25: Pipeline Network Map
DADRI-BAWANA- CHAINSA-JHAJJHAR- NANGAL & SPURLINES NANGAL HISSAR Length – 760 Km Length – 350 Km Cost – ` 2326 Cr. Capacity – 31 MMSCMD BAWANA DADRI Cost – ` 943 Cr. HISSAR JHAJJAR CHAINSA BAREILLY Design Capacity – 35MMSCMD (260 KM P/L Commissioned up AURAIYA JAGDISHPUR to Sultanpur for 5 MMSCMD) M
Slide 26: Pipeline and Petrochemical Projects Under Implementation
Poly Butadiene Rubber JAGDISHPUR-HALDIA (PBR) Length – 2050 Km Cost - ` 2575Cr. Cost – ` 7596 Cr. Cap. - 110 KTPA Capacity – 16 + 16 MMSCMD (to be commissioned in JAGDISHPUR synchronization with revival of en-route fertilizer units) GAYA Phenol-Acetone DAHEJ & Gandhar Project Cost - ` 2183Cr. SURAT
Slide 27: Pata Petrochemical Complex Expansion
• Expansion of Pata Petrochemical Complex from existing 0.4 MTPA to 0.8 MTPA. • Expected Completion : 3rd Quarter FY 2014-15 • Approved Project Cost : ` 8140 Crores • Overall Physical Progress : 97.5% (as on 15th Apr 2014) Pata • Biggest gas based Polymer Plant in Northern India • Gas Cracker Unit a
Slide 28: OPAL and Brahmaputra Cracker & Polymers
ONGC Petro Additions Brahmaputra Gas Ltd. (OPAL) Cracker & Polymers Ltd. • OPaL is implementing dual feed cracker petrochemical • The plant will process 7 project at Dahej MMSCMD of gas and • GAIL has 15.5% equity 160,000 TPA Naphtha. stake (investment of ~ ` • BCPL will produce 0.22 995 crore) alon
Slide 29: Exploration and Production Participation
with Participation in GAIL is Production Exploration (4) (13) Appraisal (3) Declaration of Commerciality: o Submitted to DGH for Mahanadi offshore (0.72 TCF) o Accepted by DGH for Tripura On-land (71 BCF) Production started in A-1 & A-3 Blocks in Myanmar (Production during Mar’14 - ~0.6 MMSCMD) Reve
Slide 30: Strategy: Upstream, Midstream, Downstream
Upstream - Thrust on global sourcing & acquisitions - LNG from traditional sources & equity linked LNG - Sourcing through transnational pipelines - Domestic tie-ups with operators of NELP-blocks - Maintain leadership position in midstream sector Midstream - Continue pipeline expansion - Set up LNG r
Slide 31: Investor Contacts
For Institutional Investors For Retail Investors & Analysts Shri Subir Purkayastha, Shri N K Nagpal, Executive Director (Finance & Accounts) Company Secretary E-mail ID: subirp@gail.co.in E-mail ID: nknagpal@gail.co.in India’s Youngest Maharatna 16, Bhikaiji Cama Place, R.K. Puram, New Delhi-110066
Slide 32: Thank You
The cover slide depicts inclusive growth stemming from the GAIL pipeline. The same vein that powers industries, transport, energy and lives in general also helps in maintaining ecological balance. The visual underlines the fact that GAIL harnesses the environment and therefore it is vital that we ar