Hindustan Petroleum Corporation Limited · NSE:HINDPETRO

Hindustan Petroleum — Debt Investor Presentation (February 2016)

40 slides from Hindustan Petroleum's debt investor presentation, February 2016

  1. Slide 1: US$465 Million Syndicated Term Loan Facility Bank Presentation

    Hindustan Petroleum Corporation Limited (A Fortune Global 500 Company) US$465 Million Syndicated Term Loan Facility Bank Presentation - February 2016

  2. Slide 2: Our History

    Questions Our History 1952  Incorporation of Standard – Vacuum Refining Company (StanVac) 1955  Incorporation of Caltex Oil Refining  StanVac operations taken over 1962 by ESSO  Takeover and merger of ESSO 1974 and Lube India into HPCL 1978  Merger of Caltex with HPCL 1979  Merger of Kosan Gas

  3. Slide 3: Global Rankings

    Questions Global Rankings Rank : 327 Rank : 133 3

  4. Slide 4: Our Vision

    Questions Our Vision “To be a World Class Energy Company known for caring and delighting customers with high quality products and innovative services across domestic & international markets with aggressive growth and delivering superior financial performance. The Company will be a model of Excellenc

  5. Slide 5: Shareholders' Profile

    QuestionsProfile Shareholders’  Shareholders : 99,280  Share Capital : US$51.18 Million  No. of shares : 338.6 Million  Market Capitalization : US$4,279 Million Public, 14.27% Employees, 0.07% NRIs, 0.29% Government of India, 51.11% Mutual Funds, 10.67% Banks, 0.05% Foreign Institutional Investo

  6. Slide 6: Business Portfolio

    Questions Business Portfolio • Mumbai: Fuels (6.5 MMTPA) & Lubes (428 TMTPA) Refinery • Visakh: Fuels (8.3 MMTPA) Refinery Refining 14.8 MMTPA Retail LPG E&P Marketing Direct Sales 6 Blocks# 32.0 MMT * Aviation Operations & Distribution • Operating thru M/s Natural Gas Prize Petroleum, a wholly owne

  7. Slide 7: Corporate Highlights: 2014-15

    CorporateQuestions Highlights: 2014-15 Domestic Sales Profit after Tax US$ Mn MMT 57.6% 2.3% Market Sales : 31.95 MMT Mkt. Growth : 2.3% Vs Ind.(PSU) 2.2% Pipeline Thruput : 14.91 MMT Crude Thruput Net Worth MMT India’s No.1 Lube Marketer : 478 TMT US$ Mn 4.3% 6.7% Highest PAT : US$437 Million 9

  8. Slide 8: Financial Performance

    Questions Financial Performance Apr – Description Unit 2014-15 2013-14 Dec 15 US$ Gross Sales Mn 22,585 34,727 37,161 US$ Profit After Tax Mn 349 437 277 EPS US$ 1.03 1.29 0.82 Book Value Per Share US$ 8.09 7.57 7.09 Dividend Per Share US$ 0.17 0.39 0.25 Total Debt Equity Ratio 1.1:1 1.27:1 2.14:1 1

  9. Slide 9: Refining

    Questions Refining

  10. Slide 10: Refining Network

    Questions Refining Network Bathinda Refinery Capacity Refinery (MMTPA) Mumbai 6.5 Mumbai Visakh 8.3 Refinery Visakh Refinery Total 14.8 Mangalore Lube Refinery (Mumbai) 428 TMTPA Refinery 49% Stake in 9 MMTPA HMEL Refinery at Bathinda 16.95% Stake in 15 MMTPA MRPL Refinery 12

  11. Slide 11: Refining Performance

    RefiningQuestions Performance 13

  12. Slide 12: Refining Highlights

    Refining Highlights Questions 2014-15 Highest ever – Combined Distillate yield 77.5% – Production of transportation fuels MS : 2.7 MMT HSD : 6.1 MMT 14

  13. Slide 13: Refinery Expansion

    Questions Refinery Expansion Visakh Refinery • From 8.3 MMT to 15 MMT • Project Cost : US$2,720 Million Mumbai Refinery • From 6.5 MMT to 10 MMT • Project Cost : US$672 Million (Phase-I) 15

  14. Slide 14: Research and Development

    Research and Development Questions Green R&D Centre being setup in R&D Thrust Areas Bengaluru with 9 labs • Opportunity Crudes Infrastructure Development • Residue Up-gradation • New Process Developments Focus Product / Collaborative process • Catalyst Development Research areas Development • Altern

  15. Slide 15: HP-HiGAS Unit at Visakh Refinery

    Questions HP-HiGAS Unit at Visakh Refinery HP-HiGAS Technology  Commissioned HP-HiGAS Technology based commercial unit at Visakh Refinery  Processed feed gas with 4 to 5 wt% of H2S and achieved less than 100 ppm  Benefits: • Reduction in footprint / smaller equipment - Size reduction by 10 times

  16. Slide 16: H2 PSA Technology

    Questions H2 PSA Technology Hydrogen Pressure Swing Adsorption Technology  Commissioned Hydrogen Pressure Swing Adsorption Technology for purification of CCR Off Gas at VR  Hydrogen purity > 99.5%  Benefits: • Production of high value Hydrogen from low value Refinery off Gases • Technology Indige

  17. Slide 17: Marketing

    Questions Marketing

  18. Slide 18: Marketing Performance

    Marketing Performance Questions 20

  19. Slide 19: Marketing supply infrastructure

    Questionsinfrastructure Marketing supply Terminals / TOPs POL/Lube Depots LPG Plants ASFs 36 91 46 36 Lube Blending Description As of 31.12.2015 Plants POL Tankage 3.1 MMT LPG bottling capacity 4.1 MMTPA QC Labs 45 Nos. TOP = Tap off Point ; POL = Petroleum Oil & Lubes *As of 31.12.2015 7 21

  20. Slide 20: Marketing Sales: 2014-15

    MarketingQuestions Sales : 2014-15 Volumes Split by Business Line ( 2014-15) HPCL Marketing business lines 1.5% 15% Retail Retail 21.4 MMT 1.5% I&C Industrial and Consumer (I&C) 4.0 MMT 13% Lubes Lubes 0.5 MMT 69% LPG Aviation 0.5 MMT Aviation LPG 4.7 MMT Total marketing sales = 31.95 MMT (including

  21. Slide 21: Retail

    Retail Questions Market share gain in TMF for Network Market Share* Sales 11th consecutive Year. 13233 (PSU) 21.4 MMT Outlets 25.4% Commissioned 380 Retail Outlets during 2014-15 Commissioned 100+ ATMs during 2014-15, taking the total to 1,600+ Network of Automated retail outlets 2,300+ Non-fuel & S

  22. Slide 22: Customer Centric Formats

    Customer Questions Centric Formats Segmentation based on ‘Stated’ and Latent Needs’ of customers. Urban Highway “Retail Outlet Formats” designed to address needs of Rural “Prominent Customer Segments” in ‘Standardized’ manner. 24

  23. Slide 23: Lubricants

    Lubricants Questions  India’s No.1 Lube Marketer  250+ Grades of Lubricants  Largest Base Oil Refinery (450 TMTPA) in India, Group II/III 230 TMTPA  478 TMT – Total Lube Sales  Strong product brands 25

  24. Slide 24: Lubricants: Lube Blending and Logistics

    Lubricants Questions Lube Blending • Seven ISO 9001 certified blending plants: 325 TMTPA • State-of-the-Art 65 TMTPA blending plant at Silvassa • ISO 9001, 14001 • Expansion plans Silvassa • Vashi, Mumbai Pan India Logistics Coverage • 2 Mother Warehouses Daruhera • 189 Stock Points • Last Mile Conn

  25. Slide 25: LPG

    LPG Questions LPG Sales : 4.7 MMT Market share : 26.8% Market Leader in Non-Domestic Bulk LPG Segment with 51% market share No. of LPG Distributorships – 3,952 World’s Largest Carousel - 72 Head Flex Speed commissioned at Yediyur Bangalore 27 Data : March 31, 2015

  26. Slide 26: Direct business lines

    Questions Direct business lines HP Aviation • Sales volume of 506 TMT • Growth in Volume 13.5% against Ind.(PSU) growth of 0.2% • Only Jet Fuel Supplier to all domestic airlines Industrial & Consumer Segment • Sales Volume 3.98 MMT, Growth 2.8% • Market share gain in major products – HSD, FO, LSHS &

  27. Slide 27: 2nd largest POL Pipelines network in India

    2nd largest POL Pipelines Questions network in India Note: Following 2 operational P/ls are not shown in map JV Pipeline 1. Bathinda – Ramanmandi P/L (30 Kms; 1.13 MMTPA) 2. Bahadurgarh - Tikrikalan P/L (14 Kms – 2 spurs; 0.75 MMTPA) Bathinda Refinery 4 Ramanmandi – Bahadurgarh P/L 243 Kms; 4.7 MMTP

  28. Slide 28: Pipeline Performance

    PipelineQuestions Performance 30

  29. Slide 29: LPG Pipeline Projects under construction

    Questions LPG Pipeline Projects under construction Mumbai Capex : ~ US$208 Million Uran – Chakan Mangalore Mumbai – Uran (sub sea) Bengaluru (165 Kms, 1.0 MMTPA) Solur Mangalore –Hassan- Mysore –Solur (397 Kms, 1.3 MMTPA) 31

  30. Slide 30: Wind Power

    Questions Wind Power Existing Capacity • Capacity : 50.5 MW. • Renewable Energy of 546 lakh KwH was generated through Wind Power Plants (at Jaisalmer, Rajasthan and Dhule, Maharashtra) for the year 2014-15. • Total Revenue during 2014-15 US$3.55 Million Planned Addition • Additional 50 MW capacity W

  31. Slide 31: Subsidiaries and JVs

    Questions Subsidiaries and JVs Upstream Refining Infrastructure 100% HRRL MAFFFL Alternate Fuels Marketing Natural Gas GIGL 100% 1 Subsidiaries GITL Strategic Storage City Gas Distribution 74% Aavantika Gas Ltd. CREDA HPCL Biofuels Ltd Introduction of new technology and value growth through Partners

  32. Slide 32: Exploration & production

    Questions Exploration & production Prize Petroleum, a wholly owned subsidiary Overseas Operations (Australia) 1 - Producing Field 1 - Discovered Field Domestic Operations 1- Producing Field (Sanganpur) 1- Discovered Field (Cambay) 1- Service contract (Hirapur) 1- Exploration Blocks (NELP IX) 2014-15

  33. Slide 33: Equity in Natural Gas Pipelines

    Questions Equity in Natural Gas Pipelines NOT TO SCALE Pipeline Bid won in consortium 3. Bathinda – Jammu -Srinagar Proposed Equity Main line : 300 kms US$72 Million Capacity: 25.7 mmscmd 2. Mehsana – Bhatinda Main line : 990 kms, Spur line 770 kms Capacity: 39.5 mmscmd Being implemented 1. Mallavar

  34. Slide 34: LNG Terminal at Chhara, Gujarat

    Questions LNG Terminal at Charra, Gujarat • Being implemented thru JVC – HSEL. HPCL Equity : 50% • 5 MMTPA LNG Regasification terminal at Chhara Port • Capacity : 5 MMTPA • Estimated Cost: US$864 Million  HPCL Share in the Equity is US$130 Million Financial Closure for the project has been complete

  35. Slide 35: Strategic Initiatives

    Questions Strategic Initiatives Integrated Margin Management Central Procurement Vision 2030 35

  36. Slide 36: Levers for value creation across supply chain

    Questions Levers for value creation across supply chain Crude & Shipping Refineries Supplies & Distribution Operation Marketing Value creation levers Feed Stock Refining Distribution Storage Sales Supply • Production • Optimization • Inventory • Optimization • Optimisation optimisation of distributi

  37. Slide 37: Centralized Procurement

    Questions Centralized Procurement Central Procurement cell: • Economy of Scale • Standardization of Processes • Effective Vendor Management 37

  38. Slide 38: Vision 2030

    Questions Vision 2030 Emerging industry landscape and HPCL Strategic direction E&P Marketing Refining Gas Alternate Energy Petchem Projects Finance Information Technology Projects Information Technology Finance Human Resources Research & CSR Human Resources Research & Development CSR Development 38

  39. Slide 39: Our strategy for the future

    Questions Our strategy for the future 1 Strengthen the core of Refining & Marketing 2 Aggressively pursue growth opportunities in the gas business 3 Acquire upstream assets in domestic and international markets 4 Expand to build Petrochemicals business 5 Participate in the next wave of growth – sola

  40. Slide 40: Thank you

    Questions Thank you

Hindustan Petroleum — Debt Investor Presentation (February 2016) on 6ix