Bharat Petroleum Corporation Limited · NSE:BPCL
Bharat Petroleum — Investor Presentation (December 2019)
26 slides from Bharat Petroleum's investor presentation, December 2019
Slide 1: Bharat Petroleum Corporation Ltd. Investor Presentation
Bharat Petroleum Corporation Ltd. Investor Presentation December 2019
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 8 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 3,376 bn in MMT FY19 and INR 2,773 bn in FY18 FY19 43.1 Market Sales FY18 41.2 • India’s 2nd largest Oil Marketing Company (OMC) with FY17 37.7 domestic sales volume of over 43.07 MMT in FY19 and 41.21 FY16 36.5 MMT in FY18 FY15 34.5 0
Slide 6: Important Milestones
Important Milestones GoI acquired Burmah BPCL and GAIL BPCL entered the Entered into Kochi CCR1 unit at Formation of Bharat Gas Shell Refineries. Name formed a JV, LNG market by upstream Refinery Mumbai Resources Limited for focus changed to BPCL in IGL, for signing a gas sales business and capacity
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 25.77% market 25.67% market Currently 8,000+ 24.94% market 22.29% market 50+ major LNG of 38.3 MMTPA share1 share1 customers share1
Slide 10: Refining Coverage and Refining Capacity
Refining Coverage Installed Capacity Refining Throughput Refining Capacity Mumbai – 12 MMTPA Kochi – 15.5 MMTPA BORL – 7.8 MMTPA Numaligarh – 3 MMTPA MMTPA Capacity Utilization consistently above nameplate capacities State of the art refinery at Bina * Bina Refinery throughput is considered prop
Slide 11: Bina Refinery
Bina Refinery Bharat Oman Refineries Limited (BORL) – BPCL Interest 50% with 7.8 MMT Refining capacity at BINA State of art technologies - High Nelson Complexity Index 11.5 NRL Refinery Associated Facilities – SPM, Crude Oil Terminal, 935-km cross country crude oil pipeline from Vadinar to Bin
Slide 12: Numaligarh Refinery
Numaligarh Refinery Numaligarh Refineries Limited (NRL) – BPCL Interest 61.65% with 3 MMT Refining capacity in the north- eastern state of Assam Largest producer of paraffin wax in the country GRM of $9.63/bbl during H1FY20 and $11.8/bbl during FY19 Expansion Plans Other Projects Capacity ex
Slide 13: Marketing Operations and Efficiencies
Marketing Operations and Efficiencies SBU Market Sales (MMT) Retail Market Share of MS & HSD * 42.00 41.21 43.07 36.53 37.68 37.00 34.45 32.00 MS > 28.62% Retail 27.00 Lubes 22.00 Direct 17.00 Aviation HSD > 28.94% 12.00 LPG 7.00 2.00 (3.00) FY15 FY16 FY17 FY18 FY19 LPG Bottling Plant Capacity (
Slide 14: Ongoing projects
Ongoing projects – thriving to be self sufficient integrated source of fuel supply Kochi Refinery – MS Block Project for Euro VI grade gasoline Mumbai Refinery – Gasoline Hydro-treatment Unit Kochi – Diversification into Niche Petrochemicals – Propylene Derivatives Petrochemical Project (PDPP)
Slide 15: Upcoming projects
Upcoming projects Investments in Mozambique – FID completed Refineries – Upgrade/ Expansion / De-bottlenecking NRL Refinery –Capacity Expansion from 3 MMTPA to 9 MMTPA Investments in Gas – 11 GAs in 9th round and 2 GAs in 10th round Expansion of marketing infrastructure across all business
Slide 16: Capex Strategy
Capex Strategy Capex Data 160.00 147.79 140.00 17.24 124.88 4.70 120.00 11.27 12.90 109.93 4.04 4.50 1.60 12.08 100.00 11.51 28.55 89.98 INR Billion 3.23 - 79.50 27.54 80.00 17.88 5.77 2.00 48.43 8.00 37.50 60.00 29.75 24.90 43.31 40.00 16.84 18.25 7.55 46.90 20.00 39.74 27.51 18.01 20.58 - FY18 FY1
Slide 17: Improved Financial Performance
Improved Financial Performance Net Worth (INR bn) Total Debt / EBITDA 341.31 367.38 374.70 2.2x 296.68 1.7x 1.6x 1.5x FY17 FY18 FY19 Sep-19 FY17 FY18 FY19 Sep-19 Total Debt / Equity 0.78x 0.79x 0.70x 0.68x FY17 FY18 FY19 Sep-19 Stable Earnings and Sound Financial Leverage driving Credit Strength 17
Slide 18: Improved Financial Performance
Improved Financial Performance 90.00 80.00 70.00 Net Profit (INR bn) 60.00 50.00 70.56 71.32 40.00 80.39 79.19 30.00 50.85 40.61 20.00 26.43 10.00 - FY13 FY14 FY15 FY16 FY17 FY18 FY19 Profit after Tax (Rs. Bn) Adjusted Debt-Equity Ratio (1) Adjusted Capital Employed (INR Billion) (1) 400 700 0.80 0.
Slide 19: BPRL's Upstream Story over the years
BPRL’s Upstream Story over the years……. 2019 2018 2017 2016 2015 2013 Overseas Onshore 2012 Entry in Lower Operatorship – Declaration of Zakum Abu Dhabi Commerciality 2011 22 Russian approved in Mozambique Acquisition Operatorship FID discoveries (cumulative) block Schedule B 2010 Indonesia Lead ent
Slide 20: Upstream Global Spread
Upstream Global Spread 2 TYNGD Production Russia 2 Vankorneft Appraisal / Development Exploration 3 Cauvery Basin 3 Rajasthan Basin India 3 Cambay Basin 1 Assam-Arakan 3 Mumbai Basin Indonesia 1 Nunukan Lower 1 UAE Zakum 1 Onshore 1 Israel 1 Block 32 Australi 2 BM-SEAL-11 1 EP413 a Brazil 1 BM-C-30
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 22
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 83.5 FY19 28.3 China 9 24.9 81.1 Brazil 15 FY18 26.2 23.3 Russia
Slide 25: Indian Oil Industry
Indian Oil Industry Positive Policy actions • Petrol Prices De-regulated completely • Gasoil (Retail) – Deregulation announced effective 19th October 2014 • Gasoil – Bulk sales completely deregulated since January 2013 • Restricted supply/Targeted subsidies for cooking fuel products • LPG DBTL schem
Slide 26: Thank You
Thank You
Bharat Petroleum — Investor Presentation (December 2019) on 6ix