Slide 1: Bharat Petroleum Corporation Ltd. Investor Presentation
Bharat Petroleum Corporation Ltd. Investor Presentation May 2016
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 3rd largest company by turnover over INR 1,891 bn in FY16 MMT and INR 2,379 bn in FY15 FY16 36.5 Market Sales • 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 − Domestic market shar
Slide 6: Important Milestones
Important Milestones Kochi Refinery capacity enhanced to 9.5 BPCL entered the LNG market GoI acquired Burmah Shell MMTPA by signing a gas sales MR capacity enhanced to Refineries. Name changed to purchase agreement with 12 MMTPA. BPCL in 1977 Petronet LNG BPCL & Videocon JV acquired 50% stake in CCR
Slide 7: Major Subsidiaries/ JVs
Major Subsidiaries/ JVs BHARAT PETROLEUM CORPORATION LIMITED Subsidiaries Joint Ventures Bharat PetroResources Ltd. Refining Bharat Oman Refineries Limited 50.00% 100% Indraprastha Gas Limited 22.50% Central UP Gas Limited 25.00% City Gas Distribution Maharashtra Natural Gas Limited 22.50% Numaligar
Slide 8: Key Business Verticals
Key Business Verticals Industrial / Refinery Aviation Retail Upstream Gas Lubricants LPG Aviation Commercial 23.7% market 25.7% market Refining 27.2% market PI in 17 oil & Currently 54 Currently share* capacity of share* gas blocks 7,000 share* 21.4% market major LNG Currently Cu
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……. 2016 2015 2014 2013 2012 2011 Russian 22 Acquisition 2010 20 discoveries (yet to Schedule B discoveries (cum) close) 2009 Lead (cum) & Joint operator Reserve Appraisal operator certification Wells 2008 Shale gas entry Australia 2007 Indonesia entry Brazil & 20
Slide 11: Upstream Global Spread
Upstream Global Spread ` Successful discoveries in Upstream to help BPCL achieve higher level of Vertical Integration 11
Slide 12: Global Upstream Footprint
Global Upstream Footprint Within India Brazil Exploration Block Operator BPRL Stake Partners Exploration Block Operator BPRL Stake* Other Partners NELP - IV CY-ONN-2002/2 ONGC 40.0% BM-SEAL-11 NELP- VI Petrobras 20.0% Videocon (3 blocks) CY-ONN-2004/2 ONGC 20.0% BM-C-30 NELP - VII Anadarko 12.5% Vid
Slide 13: 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 14: 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 15: 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 > 27.50% Lubes 20.00 Direct 15.00 Aviation HSD > 28.20 % 10.00 LPG 5.00 - FY12 FY13 FY14 FY15 FY16 LPG Bottling Plant Capacity (TMTPA) Thru’put
Slide 16: Marketing Expertise and Industry Pioneer Status
Marketing Expertise and Industry Pioneer Status Retail Initiatives Brand & Customer Loyalty Programme Launched the first branded fuel in India i.e. Speed Over 6300 Automated Outlets, Generating over 75% of Pure for Sure (PFS) total retail sales volume − Pioneer program guaranteeing fuel Qualit
Slide 17: 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 18: 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 18
Slide 19: 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 20: Improved Financial Performance
Improved Financial Performance Net Worth (INR bn) Total Debt / EBITDA 284.32 224.67 2.1x 194.59 1.3x 1.2x FY14 FY15 FY16 FY14 FY15 FY16 EBITDA / Interest Total Debt / Equity 23.2x 1.0x 18.0x 0.6x 0.6x 7.0x FY14 FY15 FY16 FY14 FY15 FY16 Stable Earnings and Sound Financial Leverage driving Credit Stre
Slide 21: Improved Financial Performance
Improved Financial Performance PAT (INR Billion)/ Networth (%) 80.00 26.14 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 22: Highly Experienced Management Team
Highly Experienced Management Team Mr. S Varadarajan, Chairman & Managing Director Over 30 years of industry experience. He also holds the position of Chairman in Numaligarh Refinery Ltd., Bharat Oman Refineries Ltd. and Matrix Bharat Pte Ltd. & position of Director in Bharat PetroResources Ltd (B
Slide 23: Industry Overview
3. Industry Overview Corporate Overview Credit Highlights 23
Slide 24: India - Oil and Gas Demand
India - Oil and Gas Demand Per Capita Oil Consumption India Oil Demand India 3 74.6 FY16 21.8 19.0 China 7 69.3 FY15 19.1 Brazil 10 17.6 Russia 15 68.4 bbl/day per 1000 people FY14 17.1 16.3 Million Tonnes UK 26 69.2 FY13 15.7 Germany 31 15.6 Australia 44 64.8 FY12 15.0 15.4 US 61 60 FY11 14.2 Singa
Slide 25: 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 26: Thank You
Thank You