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Essar Ports LtdEssar Ports LtdPerformance UpdatePerformance UpdateQuarter ended 30th June 2011
Essar Ports Management Teamg
NameName Brief BiographyBrief Biography
Mr. Agarwal, CA, ICWA and CS, has ~26 years of experience in industries like Retail, BPO, Telecom, Shipping and Logistics, etc.He has been associated with the Group since 1997 and was the ED of Essar Shipping Limited (ESL) from 1998-2002. Post that, he has held various positions like CEO of The Mobile Store Limited, Telecom Towers and Infrastructure Limited and Aegis Communications, and CEO & MD of Essar Shipping Ports & Logistics Ltd.
Mr. Agarwal, CA, ICWA and CS, has ~26 years of experience in industries like Retail, BPO, Telecom, Shipping and Logistics, etc.He has been associated with the Group since 1997 and was the ED of Essar Shipping Limited (ESL) from 1998-2002. Post that, he has held various positions like CEO of The Mobile Store Limited, Telecom Towers and Infrastructure Limited and Aegis Communications, and CEO & MD of Essar Shipping Ports & Logistics Ltd.
Pic
Mr. Rajiv AgarwalMD
Mr. Rajiv AgarwalMD
g , & pp g & gPrior to Essar, he was CEO of IndoRama Textiles, CEO & Jt MD of Modi Korea Telecom. He has won CEO of the Year Award – 2009 - Asia Retail Congress
g , & pp g & gPrior to Essar, he was CEO of IndoRama Textiles, CEO & Jt MD of Modi Korea Telecom. He has won CEO of the Year Award – 2009 - Asia Retail Congress
Mr. Sinha, B.Sc. Engg (Mech) from BIT, Sindri and MBA from FMS, Delhi, has 36 years of experienceHe joined Essar as President Pipelines in 2003 and since September 2006 he has been the CEO of the PortsMr. Sinha, B.Sc. Engg (Mech) from BIT, Sindri and MBA from FMS, Delhi, has 36 years of experienceHe joined Essar as President Pipelines in 2003 and since September 2006 he has been the CEO of the PortsPi
Mr. K. K. SinhaCEO
Mr. K. K. SinhaCEO
He joined Essar as President – Pipelines in 2003 and since September 2006 he has been the CEO of the Ports businessHe started his career in 1973 with Bokaro Steel Ltd. Subsequently he joined Indian Oil Corporation Ltd. and rose to the position of Executive Director. Thereafter, he joined ‘Petronet India Ltd.’ as Managing Director.
He joined Essar as President – Pipelines in 2003 and since September 2006 he has been the CEO of the Ports businessHe started his career in 1973 with Bokaro Steel Ltd. Subsequently he joined Indian Oil Corporation Ltd. and rose to the position of Executive Director. Thereafter, he joined ‘Petronet India Ltd.’ as Managing Director.
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Mr Shailesh SawaMr Shailesh Sawa
Mr. Sawa, CA & ICWA, has ~24 years of experience in the fields of Finance and Capital Markets.He has been associated with the Group since 1994 and has held many positions in various Group companies viz. India Securities Limited, Essar Power Limited and Essar Oil Limited (EOL).He has played a leading role in restarting of the refinery project, restructuring EOL’s financials, fund raising required for
Mr. Sawa, CA & ICWA, has ~24 years of experience in the fields of Finance and Capital Markets.He has been associated with the Group since 1994 and has held many positions in various Group companies viz. India Securities Limited, Essar Power Limited and Essar Oil Limited (EOL).He has played a leading role in restarting of the refinery project, restructuring EOL’s financials, fund raising required for
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Mr. Shailesh SawaCFO
Mr. Shailesh SawaCFO completing the refinery and further expansion of refinery in 2007completing the refinery and further expansion of refinery in 2007
Capt Subhas DasCapt Subhas Das Capt Deepak SachdevaCapt Deepak Sachdeva Capt Rajen SacharCapt Rajen Sachar Mr Venkat RaoMr Venkat Rao
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Capt Subhas Das CEO Hazira Port
Capt Subhas Das CEO Hazira Port
Capt Deepak Sachdeva COO Vadinar Port
Capt Deepak Sachdeva COO Vadinar Port
Capt Rajen SacharCOO Salaya Port
Capt Rajen SacharCOO Salaya Port
Mr Venkat RaoCOO Paradip PortMr Venkat Rao
COO Paradip Port
Ports in India – A High Growth Market
3200
3000
3500
g
Projected Total Cargo Traffic Growth Commodity-wise Outlook
452450500 CAGR-8%
827
1355
2500
660948
1620
1000
1500
2000
2500
3000
MTP
A
307
101139
114
248194 210
150200250300350400450
MTP
A CAGR-13%CAGR-7%CAGR-20%
570827660
0
500
1000
2005-06 2009-10 2014-15 (P) 2019-20 (P)Traffic Capacity
101
050
100
POL Coal Iron ore Container2009-10 2014-15(E)
Traffic Capacity
Capacity Utilization at Major PortsIndian economy to continue with 8-9% GDP growth rate- Import and Export to continue rising in line with GDP growthThe capacity utilisation of over 90%
in India is significantly higher than the
Emerging TrendsSource: Crisil Research Ports Annual Review Source: Crisil Research Ports Annual Review
- Strong demand drivers to support long term steady cargo- Upcoming projects consisting of major coastal power plants,
refineries, steel plants etc. to meet the requirements of a growing economy
Consistently high capacity utilization levels at major ports has t d d fi it d f / l t
in India is significantly higher than the international norm of 70%
281384 424 464
519 531 561
96%
90%
93%92%
98%
92%91%
90%
95%
100%
300400500600
%MTP
A
created a definite need for new / larger ports- Higher berth occupancy leads to longer waiting and turnaround time
– hence need for adding significantly large capacitiesPrivate sector has assumed a dominant role in new ports capacity additions since 1999
Almost 67% of the expenditure in 11th plan is expected to come
75%
80%
85%
0100200
FY01 FY05 FY06 FY07 FY08 FY09 FY10
MM
Significant capacity addition seen as coming from the private sector
- Almost 67% of the expenditure in 11th plan is expected to come from private sector
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Source: Indian Ports AssociationTraffic at Major Ports Capacity Utilization
Essar Ports: Overview
Operational
58* MTPA Liquid Terminal at Vadinar
Vadinar
58* MTPA Liquid Terminal at Vadinar30 MTPA Dry Bulk / General Cargo Terminal at Hazira
Salaya
Paradip I (Iron ore)16 MTPA Iron Ore Berth at Paradip20 MTPA Dry Bulk Terminal at Salaya
Under Construction
HaziraINDIA
BAY of BENGAL
Paradip II (Coal)
20 MTPA General Cargo Terminal (expansion) at Hazira
Under Development
INDIAN OCEAN Hinterland for Essar Ports
(expansion) at Hazira14 MTPA Coal Terminal at ParadipLiquid Storage Terminal (expansion) at Vadinar
Hinterland for Essar Ports
3 stand-alone ports on the West Coast and 2 terminals on the East Coast of IndiaPresence in strategic locations of east and west coast High visibility on revenue with long term Take-or-Pay contracts
* 12 MTPA Vadinar Liquid Terminal Expansion commissioned in April 2011
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High visibility on revenue with long term Take or Pay contracts Current capacity of 88 MTPA being scaled up to 158 MTPA by FY 2014. Further scalability possible at most locations High operating margins at both the operating ports
Essar Ports: Key Highlights for the Quartery g g
12 MMTPA E i P j i i d V di l di i d i12 MMTPA Expansion Project commissioned at Vadinar, leading to increased earnings
Record handling of 11.2 MMT achieved during the quarter as against 9.83 MMT in Q1 FY11
Average realization per ton improved from Rs 173 in FY11 to Rs 220 in Q1 FY12 based on higher tariff and increased earnings post commissioning of Vadinar Expansion
Revenue increased by 61% to Rs 278.48 crore as against Rs 172.97 crore in Q1 FY11 and EBITDA increased by 75% to Rs 220.29 crore as against Rs 125.96 crore in Q1 FY11
PAT of Rs 39.61 crore achieved as against Rs 3.48 crore in Q1 FY11
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Hazira: Highlightsg g
Cargo handled increased by 36% to 2.8 MMT during the quarter, as against 2.06 MMT cargo during Q1 FY11.
ISO 9001:2008 (Quality Management), ISO 14001:2004 (Health ISO 9001:2008 (Quality Management), ISO 14001:2004 (Health & Safety), OHSAS 18001:2007 (Environment) awarded to EBTL Hazira
Hazira Terminal achieves “Zero LTI” in its first year of operations
Third party cargoes handled: L&T, Torrent Power, Bhatia International
The largest ship handled at the terminal was 151,000 dwt Capesize MV Badri Prasad on 4th May 2011
61 ships handled at Hazira during the quarterp g q
6
Vadinar: Highlightsg g
Handled 8.4 MMT of cargo as against 7.7 MMT handled in Q1 FY11
SPM hose change-out carried out successfully
MOU signed with BORL for interconnection of crude oil pipelines
Received Green Tech Award for Safety Management
OISD (Oil Industry Safety Directorate) audit carried out successfully. First ever OISD audit for a private terminal in India
72 ships called at the Terminal during the quarter (18 ships called at the SPM and 54 ships at the Jetty)
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Essar Ports: Increasingly diversified cargo split with higher realizationea at o
Liquid Intermediate,
0 79Liquid
Dry Bulk, 1.94 BreakBulk, 0.12
Liquid Product (Road/Rail), 1.3
2
0.79 Dry Bulk, 2.29
BreakBulk, 0.49
Containers, 0.01
Liquid Product (Road/Rail), 1.21
Intermediate, 1.6
Crude (SPM), 3.74
Liquid Product (Jetty), 1.92
Project
Crude (SPM), 3.43
Liquid Product (Jetty), 2.16
Q1 FY11: Total Volume 9.83 MMT
Cargo, 0.01
Q1 FY12: Total Volume 11.2 MMT
A li ti i d f R 173 / MT t R 220 / MT b d hi h t iff f t d i d
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Average realization increased from Rs 173 / MT to Rs 220 / MT based on higher tariff for new cargo segments and increasedearnings post commissioning of 12 MMTPA expansion project at Vadinar in April 2011
Growth in numbers backed by take or pay contractsy p y
250
300
223
278
100
150
200
250
105
223 173
0
50
100
Q1 FY11
Q1 FY12
Minimum Guaranteed Revenue (Rs Cr) Actual Revenue (Rs Cr)Minimum Guaranteed Revenue (Rs Cr) Actual Revenue (Rs Cr)
FY 11 FY12Actual
Volume (MMT)
Billed Volume* (MMT)
Revenue (Rs Crore)
Rate(Rs / MT)
ActualVolume (MMT)
Billed Volume* (MMT)
Revenue (Rs Crore)
Rate(Rs / MT)
Vadinar 7.77 7.77 119 154 8.4 8.4 177 211
Hazira 2.06 2.25 50 220 2.8 4.28 103 241
Total 9 83 10 02 173 173 11 2 12 68 278 220
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Minimum guaranteed take or pay earnings have increased from 60% of revenues in Q1 FY11 to 80% of revenues in Q1 FY12
Total 9.83 10.02 173 173 11.2 12.68 278 220 * Billed volumes based on Take or Pay contracts
Essar Ports: Strong growth in performance
R (R C )
g g p
300
Revenue (Rs Crore)
278
250
EBITDA (Rs Crore)
220
200
250
177173
200
146126
100
150
119100
150
88
146
50
100
50
10350
34
73
0Q1 FY11 Q1 FY12
Hazira Vadinar
0Q1 FY11 Q1 FY12EBITDA
Margin 72% EBITDA
Margin 79%
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Hazira Vadinar
75% Increase in EBITDA based on: 1. increased volumes, 2. improved realization, and 3. higher EBITDA margins
Paradip: progressp p g
Conveyor gallery erection at Paradip I
Paradip I (Iron Ore)Paradip I (Iron Ore)59% project completed. Estimated COD: Q4 FY11-12
Stacker reclaimer erection in progress
Shiploader is erected, stackyard development is under progress
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Conveyor erection is under progress
Salaya: progressy p g
Construction work at Salaya
36% project completed. Estimated COD: Q4 FY13-14
Ship unloaders are delivered
1 Stacker reclaimer erected, erection of other 2 are under ,progress
Jetty construction and conveyor erection are under progress
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Environment and CRZ clearance are received. Forest clearance awaited for part of the project
Snapshot of Portfolio p
Port Cargo Type
Capacity (MMTPA)
CoDDominant Customer InfrastructureCurrent Proposed
Vadinar Liquid -Crude, Product
58 Op. Essar Oil
SPM - Draft 32mBerth A 305m - Draft 20mBerth B 300m - Draft 16mRail & Road GantriesCrude Product & IntermediateCrude, Product & Intermediate Tankages
Hazira I Dry Bulk 30 Op. Essar Steel Draft - 14mBerth - 550m
Paradip - Iron Ore Iron Ore 16 Q4 FY12 Essar Steel,
MerchantDraft - 14mBerth – 230 m
Salaya Coal 20 Q4 FY 14 Essar Power, Merchant
Draft - 14mBerth - 385m
Paradip – Coal Coal 14 TBD Merchant Draft - 17mBerth - 370m
Hazira II Dry Bulk/ Container 20 TBD Merchant Draft - 16m
Berth 700mContainer Berth - 700m
Vadinar (Storage) Crude TBD Merchant Crude & Product Tankages
Total 88 70
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Essar Ports: Financial Performance
(Figures in Rs Crore)
Q1 FY11 Q1 FY11 Q1 FY12Highlights for the quarter
Year on year revenue saw a growth of61% to Rs 278.48 crore and EBITDA
Q1 FY11 Q1 FY11 Q1 FY12ESPLL(Consol.)
ESPLL(Ports only)
Essar Ports Ltd
(Includes Shipping
Ports, Oilfields Services &
g g q
saw a growth of 75% to Rs 220.29crore on account of higher tariff andincreased earnings postcommissioning of Vadinar Expansion
Services & Logistics)
Total Income 892.2 172.97 278.48
Total Expenses 554.3 47.00 58.18
Based on the above, PAT increasedto Rs 39.61 crore as against a profitof Rs 3.48 crore for the previous year(for Ports only within the earlier
EBITDA 337.9 125.96 220.29
EBITDA Margin 38% 73% 79%
Interest and Finance Expenses 158.2 76.41 97.39
P fit B f D i ti d T 179 7 49 55 122 90 (for Ports only within the earlierconsolidated ESPLL)
Debt as on June 2011 (Rs Crore)
Profit Before Depreciation and Tax 179.7 49.55 122.90
Depreciation 116.8 38.49 51.24
Profit Before Tax 62.8 11.06 71.67
Tax 19 5 3 71 23 19 Operating 3,324 Projects 1,646 TOTAL 4,969
Tax 19.5 3.71 23.19
Adjustment for Share of Minority Interest 3.9 3.87 8.87
Profit After Tax 39.5 3.48 39.61
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Note: Financials reported as per Indian GAAP
Analyst Contactsy
Mr. Shailesh SawaDirector FinanceEssar Ports LimitedEssar Ports LimitedTel: + 91 22 6660 1506 / + 91 98197 30120Email: shailesh.sawa@essar.com
Mr. Anshumali DwivediHead – Investor RelationsEssar Ports LimitedTel: + 91 22 6660 1100 / + 91 98339 45648Email: anshumali.dwivedi@essar.com
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Legal Disclaimer g
“This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement withrespect to the purchase or sale of any security of Essar Ports Limited (the “Company” or “EPL” or “Essar Ports Limited”)and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
This presentation is not a complete description of the Company. Certain statements in this presentation contain words orphrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties andassumptions that could cause actual results to differ materially from those contemplated by the relevant forward lookingstatement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and therecan be no assurance that future results or events will be consistent with any such opinion estimate or projection Thecan be no assurance that future results or events will be consistent with any such opinion, estimate or projection. Theinformation in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete orcondensed and it may not contain all material information concerning the Company. We do not have any obligation to, anddo not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of thispresentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.
All information contained in this presentation has been prepared solely by the Company. No information contained hereinhas been independently verified by anyone else. No representation or warranty (express or implied) of any nature is madenor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of anyinformation, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither theCompany nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on thisp y y p y y y , , g ypresentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced,copied, distributed, shared or disseminated in any other manner.
The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession thispresentation comes should inform them about, and observe, any such restrictions.”
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