Gail (india) Limited · NSE:GAIL
Gail (india) — Investor Presentation (May 2012)
30 slides from Gail (india)'s investor presentation, May 31, 2012
Slide 1: GAIL (India) Limited - Growing with Green Energy
GAIL (India) Limited Growing with Green Energy Analyst Presentation 31st May 2012
Slide 2: Safe Harbor Statement
Safe Harbor Statement • 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 hist
Slide 3: Vision and Mission
Be the leading company in To accelerate and optimize natural gas and beyond with the effective and economic global focus, committed to use of Natural Gas and its customer care, value creation fractions to the benefit of for all stakeholders and the national economy environment responsibility
Slide 4: GAIL Management
GAIL Management Sh B C Tripathi Sh Sudhir Dr. Neeraj Mittal Sh R D Goyal Sh S L Raina C&MD Bhargava Director (Proj) Director (HR) Sh Prabhat Singh Sh S Venkatraman Sh P K Jain Dr A K Sh R P Singh Director (Mktg) Director (BD) Director (Fin) Khandelwal Sh Mahesh Sh Arun Smt Shyamala Dr. Vinayshil Sh
Slide 5: Three Decades of Growth
2004-2012 Three Decades of Growth - Sale of RLNG (2004) - DVPL and DPPL Commissioned (2004, 2007-08) - MoPNG Authorization for 5 new 1994-2003 Pipelines (2007) - GAIL Gas Incorporated (2008) - MGL & IGL Incorporated (1994 & - Start of Pata Expansion (2011) 1984-1993 1998) - Equity Participation in O
Slide 6: Quick Facts
Quick Facts About 3/4th of the Total Natural Gas Transmitted though pipelines in India More than 1/2 of the natural gas sold in India Almost 1/5th (21%) of Poly-ethelene produced in country LPG produced for every 10th LPG cylinder in the country Pipeline Transmission of around 1/4th of country’s tot
Slide 7: Quick Facts
Quick Facts Gas Supply for about 1/2 of the country’s gas based power generation Operating more than 2/3rd of country’s CNG stations More than 1/2 of country’s piped natural gas supply 16%+ 10 year Turnover CAGR 12%+ 10 year PAT CAGR 3900+ Manpower Asset 7
Slide 8: Business Portfolio
Business Portfolio Natural Gas Transmission • NG Transport Capacity 180 MMSCMD & ~9500kms – Current Throughput @ 120 MMSCMD • Expanding the Pipeline Capacity to 300 MMSCMD & 14000 Kms • Expanding further in Northern & Southern India Natural Gas Trading • Gas Trading volume @ 85 MMSCMD • Higher SPOT
Slide 9: Business Portfolio
Business Portfolio Liquid Hydrocarbons (LHC) • 7 LHC Processing Plants across India (Natural Gas is processed to produce LHC) • LHC Production Capacity ~1.4 MMTPA – Current Production @1.4 MMTPA LPG Transmission • Largest LPG Pipeline (JLPL) • LPG Transport Capacity 3.8 MMTPA & ~2000kms – Current Th
Slide 10: GAIL Group
GAIL Group Subsidiary JVs Associates CGD - JVs GAIL Gas Maharashtra Nat Gas Avantika gas Bhagyanagar Gas BCPL Central UP Gas GSEG Green Gas Ltd. Mahanagar Gas Fayum Gas, Egypt Indraprastha Gas GAIL Global, Tripura NGCL Singapore NATGAS, Egypt OPAL China Gas Holding PLL Ltd. GAIL Global, USA RGPPL GA
Slide 11: GAIL's Pan-India Presence
GAIL’s Pan-India Presence Surat Paradip Pipeline 11
Slide 12: GAIL's Pan-India Presence
GAIL’s Pan-India Presence 12
Slide 13: Performance Highlights
, Performance Highlights i f
Slide 14: Segmental Physical Performance FY 11-12 (Sales)
Segmental Physical Performance FY 11-12(Sales) Gas Transmission Gas Trading LPG Transmission 1% 3362 1% 84.17 117.91 3337 117.62 83.23 Petrochemicals LPG OLHC 7% 5% 5% 448 1125 316 420 1073 300 FY 2010-11 FY 2011-12 14
Slide 15: Highlights - Financial Performance
HIGHLIGHTS – FINANCIAL PERFORMANCE (` IN CR) Sales (Net of ED) Gross Margin (PBDIT) 24% 40281 5% 6247 32459 5973 PBT PAT 2% 3654 5340 3% 3561 5240 FY 2010-11 FY 2011-12 LPG Subsidy for FY 11-12: ` 3183 Cr (` 2111 Cr for FY 10-11) 15
Slide 16: Financials - With & Without Subsidy
Financials – With & Without Subsidy Turnover PAT 45,000 4000 6,000 4000 40,000 5,000 35,000 3000 3000 30,000 4,000 25,000 2000 3,000 2000 20,000 Subsidy Subsidy 15,000 2,000 1000 1000 10,000 1,000 5,000 0 0 0 0 2011-12 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2003-04 2007-08 2
Slide 17: Financial Highlights
Financial Highlights Breakup of Turnover - ` 40281 Cr 8% 9% 1% 8% 74% Breakup of Profit Before Tax - ` 5340 Cr 10% 38% 27% 20% 5% NG Trans LPG Trans NG Trad Petro LHC % share in Turnover & PBT is Excluding Unallocated Segment 17
Slide 18: Gas Sector Analysis
, i f Gas Sector Analysis
Slide 19: Energy Consumption in India
Energy Consumption in India 1800 CAGR (2010-2050) 1600 +4.5% 1400 Energy Consumption in 1200 MTOE 1000 +4.3% 800 600 +2.8% 400 +3.2% 200 +1.9% 0 2010 2030 2050 Gas Power Coal Petroleum Others Energy consumption in India to grow by 3 per cent with natural gas growing the fastest at 4.5 per cent Sourc
Slide 20: India's Gas Demand in 2017
India’s Gas Demand in 2017 (MMSCMD) 330-340 290 40-50 60-70 ~160 ~60 2011 Base Case Addition, Upside Addition, Potential Consumption Demand at if gas is Case Demand at Case ‘As Is’ committed at $8-10/MMBTU Policies & $10-15/MMBTU prices India’s demand for gas could amount to 340 MMSCMD in 2017 Sourc
Slide 21: Current Gas Supply (2012)
Current Gas Supply (2012) (MMSCMD) ~160 22 110 28 35 60 15 ONGC/OIL PMT/JVs RIL (KG) Total Contracted SPOT TOTAL Domestic LNG LNG SUPPLY Supply Current domestic gas supply is insufficient, necessitating imports Source: McKinney 21
Slide 22: Future Gas Sources by 2017
Future Gas Sources by 2017 Potential Supply Potential Landed Source (MMSCMD) Price ($/MMBTU) Domestic (Conv.+D/W) 60-100 7-9 CBM/Marginal fields 10-30 7-9 TAPI 40 10-15 Shale gas# 0-2 6-9 LNG – HH linked 10-15 11-13 LNG – spot + contracted 15-20 16-18 TOTAL 135-200 India can access an additional 70–
Slide 23: Gas Price Segmentation
Gas Price Segmentation (MMSCMD) 270-290 210-230 60 150-160 60-70 60-70 Upto $10/MMBTU Upto $14/MMBTU Upto $18/MMBTU Price Power (CCGT), Fertilizers (Naphtha), Power Fertilizer (Gas), Fertilizers (FO), (Naphtha), Steel Industrial, Captive Power, CGD, Power (CCHP), Refining Power (Peaking), (Naphtha)
Slide 24: Projected Capex
Projected Capex Planned Capex from 2012-13 to 2014-15 `18,386 Cr 10,000 (` in Cr) % share of Capex 7354 7260 7,500 16% 36% 5,000 3772 40% 8% 2,500 0 2012-13 2013-14 2014-15 Pipeline E&P Petro Others GAIL has a history of Excellent Project Management to execute the Project within given time frame and
Slide 25: Projected Capex Funding
Projected Capex Funding Planned Borrowings from 2012-13 to 2014-15 ~ `8,100 Cr 6,000 (` in Cr) Borrowing Portfolio 11% 4,000 4,500 46% 3,600 25% 2,000 18% ECA/ECB Bonds 0 OIDB Term Loan 2012-13 2013-14 Aggressive Capex Plan calls for Borrowings (Domestic & International) Leverage on GAIL’s very low
Slide 26: New Pipeline Capacity Built-up
New Pipeline Capacity Built-up Pipeline Projects Approved Capacity Length Anticipated Completion (Status) Cost (` Cr) (MMSCMD) (KM) DVPL PIPELINES – PHASE II DVPL-II Pipeline and Compressors (2+1: Jhabua; 2: (Incl. compressor at Jhabua 5837 24 to 78 610 Vijaipur) Commissioned & Vijaipur) Vijaipur- D
Slide 27: E&P Activities
E&P Activities Total Blocks 31 Onshore Blocks 9 Offshore Blocks Deep 15 & Shallow – 7 Major Operators ONGC, OIL, GSPC, Daewoo, Petrogas, Hardy, Eni, Jubilant, Dart Energy Net investment `2854 Cr (upto 31.03.2011) Hydrocarbons Discoveries Hydrocarbons Discoveries in 7 Existing where appraisal & Block
Slide 28: Future Outlook
Future Outlook FY 2011-12 FY 2014-15 NG Trans Pipeline (KM) 9000 + 14000 + NG Trans Capacity (MMSCMD) 180 + 300 + Polymer Capacity (incl. BCPL) 0.4 1.6 (MMT) E&P Revenue Generating Blocks 1 3 (Nos.) Power (MW) – Renewable Sources 120 425 Power (MW) – Non-Renewable - 250 28
Slide 29: Growth Drivers
Additional Gas Availability LNG (Dabhol & Kochi), Incremental RIL, ONGC- Marginal Fields, TAPI, NELP Blocks, FSRU, New LNG Terminals Growth Drivers Petro- chemical Expansion Pata Expansion, Participation in BCPL- Assam, OPaL- Dahej / participation overseas Petrochemical projects City Gas Distributio
Slide 30: Thank You
Growing with Green Energy In almost all Asian cultures, the bamboo plant or more appropriate “bamboo grass” has been treated reverentially attributing to it several virtues such as creation, longevity, adaptability and humility. Bamboo’s long life makes it a Chinese symbol of longevity, while in Ind