Transcript [Business Communication]

Annual
Press
Conference
2013
30.5.2013
New Delhi
1
Structure of the presentation
Industry synopsis…
At the core of IndianOil…
The year that was…
Performance at a glance…
Open forum…
2
7/7/2015
3
Economy and oil
Economy vs. POL consumption
Oil Consumption Growth (%)
GDP Growth (%)
8
7
12
9.5
9.6
9.3
8.6
6
9.3
6.2
6.7
5
10
8
4
6
6.7
3
6.8
4.5
2
1
5
3.5
4.9
5
2.9
4
2
1.4
0
0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
• Indian economy grows at 5%
• POL consumption @ 155.4 MMT in 2012-13 from 148.1 MMT
during 2011-12
4
Indian oil and gas overview
Crude Imports (MMT)
Domestic Production (MMT)
159.3
111.5
99.4
32.2
2005-06
34.0
2006-07
121.7
34.1
2007-08
163.6
171.7
184.5
132.8
33.5
2008-09
33.7
2009-10
37.7
2010-11
38.1
2011-12
37.9
2012-13
• Crude imports (volume) - CAGR 9.2% since 2005-06
•
•
Import dependency about 77% from 76% in 2011-12
Crude import bill @ USD 144 billion - CAGR 20.6% since 2005-06
• Domestic oil production stagnant at ~38 MMT
• Gas production declined to 40.7 BCM from 47.6 BCM in 2011-12
5
Oil dynamics
120
Benchmark crude oil price movement USD/ bbl
117.98
110
106.45
Av. Indian Crude Basket: USD 108/ bbl
100
94.51
90
80
Apr'12 May
Jun
Brent(Dated)
Jul
Aug
Sep
NYMEX WTI
Oct
Nov
Dubai
Dec Jan'13 Feb Mar'13
Indian basket
Moderation in Indian crude basket - Average price at USD 108/bbl vs.
USD 112/bbl in FY 12
6
7
IndianOil – A paragon in the sector
Nation’s largest refiner
* 65.7 MMTPA capacity
* 30.5% of domestic refining capacity
Country-wide network
* Over 11,000 KM crude oil, products &
natural gas pipelines
Domestic market leader
* 48.2 % market share
* Over 39,400 touch-points
R&D – among the best
* Pioneer in lube & refining technologies
* New focus on Alternate and Renewable
energy
The highest ranked Indian Company in Fortune Global 500, 2012 listing: 83rd rank
IndianOil – A paragon in the sector…
Petrochemicals – moving ahead
* 2nd largest domestic player
* 2.25 MMTPA capacity
Natural gas
* 8.2% domestic market share
* Aggressive infrastructure plans
Exploration & Production
* First-ever revenue from equity oil
* Discovery in three wells
Sustainable development
* 25 MW wind capacity added since last year
The highest ranked Indian Company in Fortune Global 500, 2012 listing: 83rd rank
10
IndianOil – Redefining growth
Highest-ever turnover of Rs. 4,14,909
crore - a rise of 11% from 2011-12
Over 100% refining capacity utilization,
6th year in a row
Bringing energy to rural India –Kisan
Sewa Kendras ~ 24% of total RO network
49% of the domestic LPG customer base.
Record 69 lakh new LPG connections in
2012-13
Commissioned Integrated Crude oil
Handling Facilities at Paradip
12
Refineries – Performance par excellence
78.1
56.3
Highest-ever Distillate Yield of 78.1%: Barauni, Panipat and Bongaigaon > 80%
Lowest-ever energy consumption at 56.3: Panipat @ 51, among the best in industry
Panipat – capable of processing 90% HS and 20% Heavy crude
13
Refineries – Profitability through optimization
• Highest HS crude processing at
53.3% from 49.2% in 2011-12
• Heavy/ high TAN crude processing
@ 13.4%
• Crude basket enlarged to 156 crudes



26 opportunity crudes out of 32 new
crudes
Processed 1.32 MMT Rajasthan crude;
0.99 MMT in 2011-12
Procured 0.88 MMT Maya crude for the
first time – heaviest crude in IndianOil
basket
14
Refineries – Forward agenda
• Projects under implementation:
To augment by 2016-17

Capacity to 74.0 MMTPA from 54.2
MMTPA

HS crude processing capability to 67%
from 53.3%

Heavy crude processing capability to
21.4% from 13.4%
 Distillate
yield to a level
of the
80.7%
• Paradip
- State-of-the-art,
one of
most modern refineries



Capable of processing 100% HS including 40% Heavy crude
Nelson complexity factor – 12.2, comparable to the best in industry
Distillate yield – 81%, Energy index – 50 MBN
15
Pipelines – Resplendent networking
Economic transportation – 47% of total white oil products moved
through
pipelines; 36% by rail, 2% by road & 14% through coastal
7/7/2015
16
Pipelines – Spreading wings
• Two additional SPMs commissioned at
Paradip


5 SPMs in operation - 2 on west coast,
3 on east coast
Cumulative handling of over 500 MMT
crude at Vadinar & over 50 MMT crude
at Paradip
• Added storage capacity of over 360
TMT for crude oil
• Blending facility at Vadinar – ready for
commissioning
• First customer connectivity through gas
pipeline
17
Pipelines – Forward agenda
• Over 110 MMTPA capacity & 19,000 KM by 2016-17
• Enhancement of capability to transport heavy crude

•
•
From 25 cst to 40 cst
Major Crude oil pipelines

Debottlenecking of Salaya-Mathura pipeline

Augmentation of Paradip-Haldia-Barauni Pipeline
Major Product pipelines

Paradip Raipur Ranchi Pipeline

Paradip-Haldia-Durgapur LPG pipeline

Cauvery Basin Refinery (CPCL) -Trichy pipeline
18
Domestic growth(%) - Major POL products
17.3
4.8
ATF
20.7
14.1
7.4
13.9
9.0
4.6
11.3
10.7
9.7
-2.6
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
9.0
5.0
5.6
2011-12
10.7
8.5
8.8
7.7
1.4
2.1
2005-06
2012-13
-4.8
HSD
11.1
6.7
MS
9.1
6.8
7.8
LPG
6.8
7.1
3.8
2006-07
2007-08
1.5
2008-09
2009-10
2010-11
2011-12
1.6
2012-13
Trend in line with economy & prices
Declining growth in LPG due to capping of domestic cylinders
19
Marketing –
Effulgent performance
Domestic POL sales (MMT)
66.7
6.6
6.3
5.8
31.6
6.0
2010-11
LPG
70.1
71.2
7.0
7.2
6.7
6.9
5.4
5.0
Naphtha
MS
ATF
SKO
HSD
34.1
35.6
LDO
FO/LSHS
5.0
2011-12
3.9
2012-13
Lube Greases
Bitumen
Others
Highest-ever product sales; Market leader with 48.2% market share
20
Marketing – Making winning moves
• Highest No. of ROs commissioned

Over 10% sales contributed by KSKs
• 1600 ROs automated during the
year, total reached to 4,377
• Commissioned an AFS at Thoise:
10,500 ft. above MSL
• Highest-ever supplies of 1 MMT to
Nepal
• Added over 600 TMTPA of LPG
bottling capacity
21
Marketing – Reaching out, touching lives
As on 31.3.2013
SKO/ LDO Dealers,
Terminal/ Depots, 3938 (59.8%)
135 (42.2%)
Consumer Pumps,
6361 (86.0 %)
AFS, 97 (50.3%)
LPG Distributors,
6467 (51.3%)
Retail Outlets,
22372 (45.6%)
LPG Bottling
Plants, 90 (48.4%)
39,460 touch points - 51.7 % of the industry
22
Marketing –
Forward agenda
• Major projects under implementation

LPG facilities and marketing terminal at Paradip

LPG import facility at Kochi

Various re-sitement projects for optimal logistics
• Dedicated ATF pipelines
• Initiatives in retail network

Automation of 12,000 ROs (all ROs selling more than 100
KL/ Month) by 2016-17

Introduction of large format ROs at highways
23
R&D – Class apart
• Indigenously developed technologies

Indmax at Guwahati & Paradip

LPG Deasphalting process
implemented at Haldia

INDAdeptG being implemented at
Guwahati

View of Indigenously developed
INDMAX technology at Paradip
Food grade Hexane unit commissioned
at HMEL, Bhatinda
• India’s first Integrated lignocellulosic
biomass to ethanol pilot plant
• First time co-processing of non-edible
oil in DHDT unit of CPCL, Chennai
Lignocellulosic Biomass to ethanol
pilot plant
24
R&D – Class apart
• Lubricants

120 product formulations developed

Received 43 OEM/customer/defence approvals &
re-certifications
• Patents

Applied record No. of 52 patents in a year: 8 patents
granted
• Status of patents:
India
USA
Others
Total
Lubes
Refineries
Others
Total
133
56
65
254
35
138
81
254
25
PROPEL – Ideas for growing business
Domestic Petrochemicals sales, KT
1824
1480
POLYMERS
842
909
208
GLYCOLS
614
228
312
PX/ PTA
147
447
542
552
107
96
118
2010-11
2011-12
2012-13
LAB
2nd largest petrochemicals capacity share in the country
7/7/2015
26
Petrochemicals – Forward agenda
• Entering into niche segment

139 TMTPA, Butadiene Extraction Unit at Panipat

120 TMTPA, Styrene Butadiene Rubber plant at Panipat
• Revamp & debottlenecking of existing PX/PTA &
LAB units
• Poly Propylene unit at Paradip
• Petcoke Gasification & Acetic Acid project
27
Gas – Emerging as the fuel of choice
7/7/2015
Highest-ever R-LNG sales
28
Gas – Emerging as the fuel of choice…
• Finalized PMC for Ennore LNG project
• Aggressive moves for laying cross-country gas
pipelines
• Authorized to build CGD networks in Chandigarh &
Allahabad
• Supplies through ‘LNG at Doorstep’ - growth of 77%
29
E&P – A landmark year
•
Acquired 10% stake in
Niobrara Shale Oil JV asset,
Carrizo, USA – brought in 1st
E&P earnings
•
Production started in Project
Carabobo, Venezuela
•
1st ever drilling in the domestic
operated block
•
Discovery in 3 wells
A view of the drilling site: IOC Khambel 1
30
Clean energy – Towards a sustainable future
• Wind capacity enhanced to 63 MW
• 100 GWH grid-connected renewable
energy generation in a year
Initiatives towards cleaner tomorrow

Carbon foot printing at 48 locations

Energy audit of 28 buildings

Rain water harvesting at 54 locations

Solarization of about 300 ROs
31
CAPEX plans - Investing for a brighter
tomorrow
Rs. crore
• CAPEX of Rs. 48,655 crore during XI
Five Year Plans, BE
Plan, 7.1% more than plan
• Budgeted Estimate (BE) of Rs. 56,200
XII Plan
56,200
XI Plan
45,430
crore in XII Plan

Rs. 9378 crore in 2012-13

BE of Rs. 11,277 crore in 2013-14
XII Plan CAPEX, Rs. crore
E&P
Refining & Marketing
Petrochemicals
56,200
6,200
41,456
8,544
X Plan
24,400
32
Global agenda – Beyond boundaries
Turnover (Rs. crore)
IndianOil
Mauritius
Ltd.
• Aviation, terminaling & retail
• 24,000 MT storage terminal
• 18 retail outlets
1192
1274
2011-12
2012-13
841
2010-11
3147
Lanka IOC
Ltd.
• Storage, terminaling & retail
• 157 retail outlets
• Bunkering, lube blending &
marketing, bitumen
2090
2010-11
2557
2011-12
2012-13
Other overseas subsidiaries:
IOC Middle East FZE – Marketing of Lubricants and POL products
IOC Sweden AB and IOC (USA) Inc: Facilitating overseas upstream operations
33
CSR – Making a difference
Assam Oil School of Nursing, Digboi
20 girls successfully completed 4-year nursing course
Cumulatively, 317 girls employed so far (100% success)
34
CSR – Extending care and support
• 2600 educational scholarships
• Total cost: Rs. 11 crore in 2012-13
• 52 Mobile Medical Units
operational, linked to 52 Kisan
Seva Kendras in AP & UP
• Treated over 1 million patients
7/7/2015
35
36
Turnover – Marching ahead
(Rs. crore)
Description
Inland sales &
exports
Product sales to
OMCs
2011-12 2012-13 Var. (%)
313044
344484
9.6
49255
52547
6263
54.3
Petrochemicals
11889
16533
39.1
378247
419827
11.0
Total
Q-4
110607
16.1
4059
Less: Discount
373926
101105
Gas
Sub-Total
414909
4321
4918
13.8
373926
414909
11.0
96006
Q-3
86102
Q-2
90713
Q-1
2011-12
107686
94680
101936
2012-13
Profit after tax
Rs. crore
7445
5005
3955
2010-11
2011-12
2012-13
38
Under-recoveries
(Rs. crore)
2011-12
2012-13
75469
85793
Discount from upstream companies
29961
31967
Budgetary support from Govt.
45486
53278
Total compensation
75447
85245
22
548
% of Unmet Under-Recovery
0.03%
0.64%
Loss on MS (Due to non-revision of prices)
2203
485
Total Unmet U/R (including loss on MS)
2225
1033
Gross Under-Recovery
Less: Compensation
Unmet Under-Recovery
Borrowings
90000
75,447
1.8
70000
60000
1.6
52,734
1.32
1.27
50000
1.4
1.2
40000
0.95
1
30000
0.8
20000
10000
D/E Ratio
80000
Rs. crore
2
80,894
2,670
6,409
5,591
0
0.6
0.4
31.3.2011
31.3.2012
Interest Cost
31.3.2013
Borrowings
Debt Equity Ratio
40
Contribution to Exchequer
78885
79819
53330
37962
77620
49027
(Rs. crore)
26489
2010-11
Central
29864
39658
States
2011-12
2012-13
41
42