petronet corporate presentation june 2011

7/31/2019 Petronet Corporate Presentation June 2011

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PETRONET LNG LIMITED

PETRONET LNG LIMITED

2011

A CORPORATE PROFILE


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OVERVIEWOVERVIEW

Global & Indias Primary Energy ConsumptionScenario

Indias Gas Scenario, Infrastructure

Pricing of Gas

About Petronets

Dahej & Kochi Terminals

New Initiatives

Performance


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PRIMARY ENERGY PER CAPITA CONSUMPTIONPRIMARY ENERGY PER CAPITA CONSUMPTION

Source : BP Statistical Review June 2011


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PRIMARY ENERGY CONSUMPTION (MTOE)PRIMARY ENERGY CONSUMPTION (MTOE) -- WORLDWORLD

Fuel 2005 % 2010 %

Oil 3837 36 4028 34

Gas 2475 24 2858 24

Coal 2930 28 3556 30

36%

28%

6%6%

Oil

Gas

coal

Nuclear

Hydro

Renewables

Year 2005

Source : BP Statistical Review-June 2011

Nuclear 627 6 626 5

Hydro 669 6 776 6

Renewables - - 159 1

Total 10537 100 12002 100

34%

24%

30%

5%6%

1%

Oil

Gas

coal

Nuclear

Hydro

Renewables

Year 2010


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PRIMARY ENERGY CONSUMPTION (MTOE)PRIMARY ENERGY CONSUMPTION (MTOE) -- INDIAINDIA

Fuel 2005 % 2010 %

Oil 116 30 156 29

Gas 33 8 56 11

Coal 213 56 278 53

Year 2005

30%

8%56%

1%5%

Oil

Gas

coal

Nuclear

Hydro

Renewables

Nuclear 4 1 5 1

Hydro 22 5 25 5

Renewables - - 5 1

Total 387 100 524 100

Year 2010

Source : BP Statistical Review-June 2011

29%

11%53%

1% 5%1%

Oil

Gas

coal

Nuclear

Hydro

Renewables


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INDIAINDIA A MAJOR GAS/LNG CONSUMERA MAJOR GAS/LNG CONSUMER

13th largest gas consumer 70 BCM (~190 MMSCMD)

6th largest LNG importer 16 BCM (~44 MMSCMD)

Economy increasing at CAGR of 7-8% p.a. with similarincrease in Energy Consumption

increase from 11% to 20% by 2025

Despite increase in domestic gas production-dependency on imported gas to increase substantially

Pipeline network- developing into a national grid- needsto grow faster, connecting new markets


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CURRENT GAS DEMAND &CURRENT GAS DEMAND &DOMESTIC SUPPLY SCENARIODOMESTIC SUPPLY SCENARIO

550+ (19.5+)

253.4 (9.0)

306.4 (10.8)341.1 (12.1)

381.0 (13.5)

250.0

300.0

350.0

400.0

Demand Supply

( Bcf/Day)

( MMSCMD)

240 (8.5)

Demand Mercados Analysis

Supply Directorate General of Hydrocarbons (DGH)

178.9 (6.3)

146 (5.2) 155 (5.5)191.6 (6.8)198.4 (7.0)

202.9 (7.2)

0.0

50.0

100.0

150.0

200.0

2010-11 2011-12 2012-13 2013-14 2014-15 2019-20

(7.6)


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-

50.00

100.00

150.00

200.00

250.00

GasDemand (MMSCMD)

SECTOR WISE PROJECTED GAS DEMANDSECTOR WISE PROJECTED GAS DEMAND

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

P owe r Fe rtilize r City Gas P etc he m-Re fine ry Sponge Ir on

2010-11 2011-12 2012-13 2013-14 2014-15

Power 87.71 149.11 185.52 212.73 243.34

Fertilizer 49.39 57.48 68.08 68.08 68.08

City Gas 13.70 17.53 22.44 28.72 36.76

Petchem-Refinery 24.44 25.42 26.43 27.49 28.59

Sponge Iron 3.71 3.82 3.93 4.05 4.17

Total 178.94 253.36 306.41 341.08 380.95

Source: Mercados Analysis, 2010


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146185

46

185

35

185

77

185

4591

126

203

40

311

388

27659

171

25

19

230

Gas demand and supply, 2015

Mmscmd, at customer gate prices

LARGE DEMAND BUT SENSITIVE TO PRICELARGE DEMAND BUT SENSITIVE TO PRICE

SOURCE: Indianpetro; DGH; Company annual reports; Expert interviews; McKinsey analysis

High Potentialdemand,2015

Price of $8-10 mmbtu

Medium Price of $11-12/ mmbtu

Price of $13-14/ mmbtu

Price of $16-17/ mmbtu

Low2010 yearendconsumption

1 Based on estimated LNG supply of 8 mtpa in 2015 including RasGas (7.5 mtpa) and 1.5 mtpa from Gorgon LNG in 2015

21 3 4

Imports

Domestic supplies

Sectors withdemand

Industries CNG

transport

Refineries Industries Power

cogen

Peakingpowerplants

Baseloadpower

New fertilizer

plants

Prices at Crude of $ 100/Bbl


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INDIAs GAS INFRASTRUCTUREINDIAs GAS INFRASTRUCTURE


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LNG IN INDIALNG IN INDIA

Hydrocarbon Vision 2025 envisaged a GDP growth of 5-6% forthe E&P sector along with demand supply scenario of oil & gas in

the Country

Current GDP growth of 79% translate into overall energy

demand growth at CAGR of 7.50%

Given Indias growing energy requirements & unlikelihood ofmatching increase in the domestic supplies, despite some

significant oil & gas finds recently, the import dependence is

only going to accentuate sharply in the coming years

LNG Regas Capacities

Presently, Indias LNG import capacity is around 13.5 MMTPA through

its two terminals & meeting approx. 20% of total gas supply of the

country


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PETRONET LNG LIMITEDPETRONET LNG LIMITED

Incorporated on April 2, 1998

Authorized Capital USD 260 mln, Paid up capital USD 160 mln

Commencement of Commercial Operations - April, 2004

Equity

, , 10% held by GDFI (part of GDF SUEZ) 5.20% ADB


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VisionVision

To be a key energy provider to thenation by leveraging unique position inthe LNG value-chain with internationalpresence

Revenue grew 24%EBITDA growth 17%

TOWARDS THE VISIONTOWARDS THE VISION

Create and manage worldCreate and manage world--classclassLNG infrastructureLNG infrastructure

Pursue synergistic businessPursue synergistic businessopportunitiesopportunities

Continue excellence in LNGContinue excellence in LNG

Business StrategyBusiness Strategy

2849

businessbusiness

- Focus on higher capacityutilization and betteroperational efficiencies

- Diversify LNG sources

Diversify businessDiversify business

- Gas-based power generation

- Venture into city-gas

distribution/ direct marketingto far-flung consumers

- Solid cargo port at Dahej

Maintain highest standards ofMaintain highest standards ofbusiness ethicsbusiness ethics

11981425

1772

2305

146 196 208 201273

FY-07 FY-08 FY-09 FY-10 FY-11

RevenueEBIDTA

(all values in USD Million)


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DAHEJ LNG TERMINALDAHEJ LNG TERMINAL

Located at West Coast, State of Gujarat in the Gulf ofCambay

Commencement of Operations in 2004

Capacity (Mmtpa) : 5.0 10.0

Truck Loading facility can handle 2500 loadings/ yr.

LNG Cargoes unloaded :761(September 21,2011)

Further capacity expansion to 15 Mmtpa

Second Jetty : Under Construction

Regas & Storage Capacity : DFR Under Progress

Pre Project Activities started


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DAHEJ LNG STORAGE TANKSDAHEJ LNG STORAGE TANKS


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DAHEJ REGAS FACILITIES WITH AIRDAHEJ REGAS FACILITIES WITH AIR--HEATERHEATER


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LNG TRUCK LODING FACILITIESLNG TRUCK LODING FACILITIES DAHEJDAHEJ

VAPORISATIONVAPORISATIONFACILITIESFACILITIESWEIGH BRIDGEWEIGH BRIDGE


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KOCHI LNG TERMINALKOCHI LNG TERMINAL

LNG Terminal located in Special Economic Zone with Co-developer status

Capacity 2.5 5.0 MMTPA

Tied up 1.44 MMTPA LNG from Exxon Mobils Gorgon Project

,

Regasification Facilities being constructed by CTCI, Taiwan

Marine Facilities being constructed by Afcons Infrastructure Ltd

Progress on schedule, overall completion more than

87%, scheduled commissioning by end 3rd Qtr. , 2012


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KOCHIKOCHI STORAGE TANKSTORAGE TANK


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KOCHIKOCHI -- MARINE FACILITIESMARINE FACILITIES


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NEW THIRD TERMINAL AT EAST COASTNEW THIRD TERMINAL AT EAST COAST

Proposed Capacity: 5 MMTPA

Possible Locations: Andhra orOrissa Coast

Regasification Scheme:Indirect Fluid using ambient

a r ea er

PFR Completed

Site Selection Process underprogress

Process for selection of

Consultant for DFR started


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INTEGRATED POWER PLANT AT DAHEJINTEGRATED POWER PLANT AT DAHEJ

Proposed power plant of 3 x 356 MW-ISO (total 1068 MW CCGT)with improved performance, the expected output is 1200 MW

Fuel requirement of 1.0~1.1 Mmtpa LNG

Implementation schedule

-

33 months for construction and commissioning

DFR for a 1200 MW Power Plant - completed

Land Acquisition & Environment Clearance under progress.

Power project planned to harness cold energy from LNGTerminal


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DIRECT MARKETINGDIRECT MARKETING

Petronet exploring opportunities to supply LNG to Coastalarea consumers through small LNG Vessels in India andneighbouring countries

Direct Marketing by focusing on the following areas:

Signed HOAs with bulk end consumers in Power, Refineries

LNG/LCNG supplies through Trucks, to LNG hubs, SatelliteStations at customers premises in regions not serviced bypipelines


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BUSINESS MODELBUSINESS MODEL

Robust Model

LNG supply contract with RasGas, Qatar & Exxon Mobil, Australia

Gas Sales Agreement with GAIL, IOCL & BPCL back to back with SPA

Time Charter Agreement with established consortium

Entire Fuel cost pass through including exchange rate

Location

Proximity to LNG suppliers

Most competitive LNG transportation cost

Proximity to Customers HBJ pipeline, DUPL and GSPC network in

Gujarat


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FINANCINGFINANCING

Very strong parentage and a robust business model

Financing cost is amongst the lowest in the industry

With the use of effective hedging techniques, the

debt service even in such turbulent times


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PERFORMANCE GRAPHPERFORMANCE GRAPH

287

322 321

384

412

350

400

450

Sales Trillion BTU

486

583

638

500

600

700

Net Worth (Million USD)

125

247

115

0

50

100

150

200

250

191

233

277

352

0

100

200

300

400


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PERFORMANCE GRAPHPERFORMANCE GRAPH

Million USD

PAT Million USD

103

113

135

120

140

160

2305

2849

2000

2500

3000

Turnover USD Million

-6

42

68

88

56

-20

0

20

40

60

80

423

834

1198

1425

991

0

500

1000

1500


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PERFORMANCE BASED ON EMPLOYEE PARAMETERSPERFORMANCE BASED ON EMPLOYEE PARAMETERS

2010-11 2009-10 2008-09

No. of Employees 276 273 256

Turnover/ employees (USD Million) 10.31 8.47 7.24

Profit Before Tax / Employee (USD Million) 0.70 0.47 0.66

Employee Remuneration cost as % of Profit) 3.3% 3.41% 2.53%

Total no. of employees : 276

Training & Development : 6 Mandays / Employee

Average Age: 34 years (58% employee in 31-40 years of age)

63% of employees are Graduates or Post Graduates

Average years of association of employees with Company 5 years

Attrition rate 2010-11 : 4%


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FINANCIAL PARAMETERSFINANCIAL PARAMETERS

0.06

0.09

0.140.15

0.12

0.18EPS (USD)

Year EPS (USD) P/E D/E Ratio

FY-06 0.06 23.99 1.17

FY-07 0.09 11.15 1.08FY-08 0.14 11.62 0.97

FY-09 0.15 5.75 1.15

FY-10 0.12 15.19 1.12

FY-11 0.18 14.86 1.20

FY-06 FY-07 FY-08 FY-09 FY-10 FY-11


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SHAREHOLDERS WEALTH CREATIONSHAREHOLDERS WEALTH CREATION

As on Mar, 31 2004 2005 2006 2007 2008 2009 2010 2011 Current

USD per share 0.58 1.00 1.34 1.01 1.60 0.87 1.78 2.67 3.87

Mkt. Price INR 27 46 62 47 73 40 82 123 178

USD per share

0.581.00

1.34

1.01

1.60

0.87

1.78

2.67

3.87

2004 2005 2006 2007 2008 2009 2010 2011 Sep/11


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FINANCING STRUCTUREFINANCING STRUCTURE

Particulars DahejTerminal

KochiTerminal

2ndBerth at

Dahej

Total

Shareholders FundEquity Capital/Internalaccruals/Premium

250 270 60 580

((US$ MILLION)US$ MILLION)

Debt 550 630 140 1320

Total Means of Finance 800 900 200 1900


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CSRCSR --THE JOURNEY HAS JUST BEGUNTHE JOURNEY HAS JUST BEGUNTOWARDS AN INCLUSIVE SOCIETYTOWARDS AN INCLUSIVE SOCIETY

Participative community development programmes with GIDC Luvara & Lakhigam villages

CODEGAZ, the CSR arm of our strategic partner GDF Suez supports our cause.

Health & Sanitation

Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage.

Preventive and Social medicine aids (includes primary health centre).

Education and Employment generation programs

Construction of School Scholarshi & Vocational Trainin .

Sponsorship of differently abled children of Tamanna School & inauguration of Petronet LNG

Centre for Vocational Rehabilitation.

Indirect employment for local villagers in the area of Housekeeping & Horticulture.

Community Development

Renovation of personal facility & fencing at Panchayat office of Luvara Village, Gujarat.

Govt. Development Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre.


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NOTESNOTES


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Dahej PlantPetronet LNG Limited

GIDC Industrial

Estate,Plot No. 7/A, Dahej,

Taluka Vagra,Distt. Bharuch

Gujarat - 392130

Corporate OfficePetronet LNG Limited,

1st Floor, World Trade Centre,Babar Road, Barakhamba

Lane,

New Delhi 110001www.petronetlng.com

For any other info. :[email protected]

Ph: 91-11-23411411

Kochi SitePetronet LNG Limited

Survey No. 347,Puthuvypu P.O. ,

Kochi, Kerala - 682508

petronet corporate presentation june 2011

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