GAIL (India) Limited · NSE:GAIL
GAIL (India) — Investor Presentation (November 2009)
30 slides from GAIL (India)'s investor presentation, Nov 4, 2009
Slide 1: Analyst Presentation
Analyst Presentation 4th November 2009 Mumbai
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation has been prepared by GAIL (India) Ltd (Company or GAIL) solely for providing information about the Company. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historic
Slide 3: GAIL Management
GAIL Management Sh B C Tripathi Chairman & Managing Director Functional Directors Sh R K Goel Sh R D Goyal Sh S L Raina Director (Fin) Director (Proj) Director (HR) Government Nominee / Independent Directors Sh Sundareshan Sh Apurva Sh R M Sethi Sh Mahesh Prof. A.Q. Dr. Vinayshil Dr. U K Sen Chandra
Slide 4: Quick Facts
Quick Facts India’s Premier Integrated Natural Gas Company since 1984 25+ Years of Experience & Expertise in Gas P/L Baa2/A3 Moody’s – Foreign/Domestic Rating AAA ICRA & CRISIL for Bond Issue 57%+ GoI Stake 15%+ 10 Years Turnover CAGR 10%+ 10 Years PAT CAGR 3500+Manpower Asset
Slide 5: Quick Facts
Quick Facts India’s Premier Integrated Natural Gas Company since 1984 150 MMSCMD+ Gas Transmission Cap 1.3+ MMTLHC Production Capacity 410+ TMTPolymer Production Capacity 30 E&P/CBM Blocks 2 : 100% Subsidiary Presence in 4 Countries 12 : JVs/Associate Companies
Slide 6: Shareholding Pattern
Shareholding Pattern Shareholding Pattern Shareholders >1% + share as on 30.09.09 1.43 3.41 13.79 President of India 57.34% ONGC 4.83% IOC 2.42% Life Insurance Corporation 5.42% 12.13 LIC of India – Money Plus 1.79% 57.34 TOTAL 71.80% 7.24 5.01 GoI MF/UTI/FI/Bank CG/SG Insurance FII GDR Ot
Slide 7: Financial Overview
Financial Overview Turnover CAGR of 15% PAT CAGR of 10% 26000 2750 24000 22000 2500 20000 18000 2250 16000 14000 2000 12000 10000 1750
Slide 8: Business Portfolio
Business Portfolio NG Transmission NG Trading Petrochemicals Liquid Hydrocarbons Retail E&P GAILTEL Diversification
Slide 9: Segmental Physical Performance – H1 FY 2009-10
Segmental Physical Performance – H1 FY 2009-10 Gas Transmission Gas Trading LPG Transmission MMSCMD MMSCMD ‘000 MT 101.66 79.43 80.50 16% 1,469 % 1,266 22 83.08 H1 08-09 H1 09-10 H1 08-09 H1 09-10 H1 08-09 H1 09-10 Petrochemicals Liquid HC OLHC ‘000 MT ‘000 MT 552 ‘000 MT 166 1% 180 (1 179 % 7% ) 15
Slide 10: Financial Performance – H1 FY 2009-10
Financial Performance – H1 FY 2009-10 (Rs in Crores) Sales (Net of ED) Gross Margin (EBITDA) 3% 3,175 11,860 12,224 3,250 12,500 3,000 (27 %) 11,250 2,750 10,000 2,500 2,332 8,750 2,250 7,500 2,000 H1 08-09 H1 09-10 H1 08-09 H1 09-10 PBT PAT 2,855 2,250 3,000 1,920 ( 29 2,000 2,750 %) (29 %) 2,500 1
Slide 11: Gas Transmission Segment
Gas Transmission Segment (Rs in Cr) Turnover 12% 1,443 32% 1,093 H1 08-09 H1 09-10 EBITDA 1,266 35% 935 53% H1 08-09 H1 09-10 • Core Business • NG Trans Cap ~ 150 MMSCMD (7000 KM)
Slide 12: Gas Trading Segment
Gas Trading Segment (Rs in Cr) Turnover 8,109 12% 7,267 66% H1 08-09 H1 09-10 EBITDA 4% 217 208 9% H1 08-09 H1 09-10 • Core Business • Earning of Marketing Margin by Natural Gas Trading
Slide 13: LPG Transmission Segment
LPG Transmission Segment (Rs in Cr) Turnover 208 2% 19% 175 H1 08-09 H1 09-10 EBITDA 162 24% 131 H1 08-09 H1 09-10 7% • Core Business • LPG Trans Cap ~ 3.6 MMTPA (1900 KM)
Slide 14: Petrochemical Segment
Petrochemical Segment (Rs in Cr) Turnover 10% 1,413 (13% ) 1,234 H1 08-09 H1 09-10 EBITDA 836 (26 %) 26% 620 H1 08-09 H1 09-10 • Only Plant in North India • Polymer Capacity ~ 410 KTPA • Drop in Turnover & EBITDA due to lower Product Prices
Slide 15: Liquid Hydrocarbon Segment
Liquid Hydrocarbon Segment (Rs in Cr) Turnover 10% 1,864 (36 %) 1,199 H1 08-09 H1 09-10 EBITDA 929 5% (87 %) 121 H1 08-09 H1 09-10 • 7 Plants across India • Liquid Hydrocarbon Capacity ~ 1.3 MMTPA • Drop in Turnover & EBITDA due to lower Product Prices
Slide 16: Corporate Mission & Vision
Corporate Mission & Vision VISION Be the leading company in natural gas and beyond with global focus, committed to customer care, value creation for all stakeholders and environment responsibility MISSION To accelerate and optimise the effective and economic use of Natural Gas and its fractions to t
Slide 17: GAIL – Strategy Implementation
GAIL – Strategy Implementation E&P Upstream Upstream LNG Import Move Domestic Source 2 International Opportunity mission Business Marketing, 1 Trans- Core Trans., Cross Country P/L 4 Mid Stream Gas Processing Diversification Petrochemicals 3 diversify Retail & City Gas, Power, Telecom
Slide 18: Gas Demand Supply Assessment
Gas Demand Supply Assessment (In MMSCMD) Sector wise Gas Demand Projection Source wise Gas Supply Projection Sector 2009-10 2011-12 Sources 2009-10 11-12 Power 103 127 Fertilizer 56 76 ONGC+OIL (A) 55 51 City Gas / CNG 14 16 Pvt./ JVs (As Per DGH) (B) 60 57 Industrial 17 20 Projected Domestic Supply
Slide 19: GAIL – Existing Infrastructure
GAIL – Existing Infrastructure GAS PIPELINES 7200 KMS (150 MMSCMD) RAJASTHAN LPG PIPELINES JL PL PATA LAKWA 1900 KMS L D VP VIJAIPUR J, (3.6 MMTPA) ND HA R HV TRIPURA GA VAGHODIA GAS PROCESSING USAR VSPL 7 Plants KG BASIN (1.3 MMTPA LPG) NATURAL GAS PIPELINE LPG PIPELINE PETROCHEMICALS LPG PLANT PET
Slide 20: GAIL – Approved Pipeline Projects
GAIL – Approved Pipeline Projects CHAINSA-JHAJJHAR-HISSAR Major Pipeline Projects DADRI-BAWANA-NANGAL LNTH – 443 Kms. # LNTH – 621 Kms. # NANGAL Cost – Rs. 1201 Cr. Under Cost – Rs. 2340 Cr. Add. Cap. – 35MMSCMD Execution Add. Cap. – 31MMSCMD BAWANA DADRI HISSAR JHAJJAR CHAINSA BAREILLY Approved in
Slide 21: GAIL – Capacity Built-up
GAIL – Capacity Built-up (Length in KM) 15000 13825 (Existing Network) 14000 13000 P/L Cap Lnth 12000 11132 HVJ/DVPL 57 4233 11000 10000 9272 Mumbai 24 125 9000 DUPL/DPPL 12 793 8000 7220 7663 7000 Others 49 2069 6000 TOTAL 142 7220 Existing 2009-10 2010-11 2011-12 2012-13 Length Additional Infrastr
Slide 22: Projects Envisaged to Secure Future – Other Projects
Projects Envisaged to Secure Future – (Other Projects) (Rs in Crores) FUTURE PROJECTS # 2009-10 2010-11 2011-12 2012-13 NEW CROSS COUNTRY PIPELINE # 2 10 2,000 4,000 KOCHI KAYAMKULAM (SUB SEA) PIPELINE # 5 40 600 105 PIPELINE FOR PATA EXPANSION # 2 5 600 600 REGIONAL PIPELINE 2 366 366 - Sub Total -
Slide 23: Projected Capex – Rs.49155 Cr
Projected Capex – Rs.49155 Cr 17,500 16385 14864 15,000 % share of Capex 20% 12,500 10,000 7639 7,500 10% 5687 4580 5,000 70% 2,500 0 2009-10 2010-11 2011-12 2012-13 2013-14 Pipeline E&P Others GAIL has a history of Excellent Project Management : to execute the Project within given time frame and wi
Slide 24: Projected Borrowings – Rs.28700 Cr
Projected Borrowings – Rs.28700 Cr Borrowing Portfolio (INR Vs FC) 14,000 76% 12,000 12,500 10,000 10500 24% INR Loan FC Loan 8,000 Borrowing Portfolio 6,000 40% 21% 4,000 4,500 2,000 3% 4% 1,200 32% 0 2009-10 2010-11 2011-12 2012-13 INR Bonds Term Loan OIDB ECA FC Loan Aggressive Capex Plan calls
Slide 25: E&P Activities - Secure Future Gas Supplies
E&P Activities - Secure Future Gas Supplies Total Blocks - 30 Onshore Blocks - 9 Offshore Blocks - Deep 13 & Shallow - 5 CBM Blocks - 3 (Under coring) Major Operators - ONGC, GSPC, OIL, GSPC, Oilex, Daweoo, Pertogas, Hardy, Eni, Jubilent, Arrow Energy Net investment - Rs.1828 Cr (upto 30.0
Slide 26: GAIL’s Future
GAIL’s Future Emerging as a Strong NG Trans Company with diversified portfolio Unit FY 2008-09 FY 2012-13 NG Trans Pipeline KM ~7000 ~14000 NG Trans Capacity MMSCMD ~150 ~300 Polymer Capacity MMT ~4 ~8 (incl BCPL) E&P Revenue Nos. 1 3 Generating Blocks (5 in FY 13-14) Retail Gas Presence No of 15 ~5
Slide 27: Immediate Growth Drivers from FY 09-10 onwards
Immediate Growth Drivers from FY 09-10 onwards • Additional Gas availability: • RIL – KG Basin gas from Q1 09-10 onwards • PLL - RLNG from Q4 09-10 onwards • Dabhol – RLNG from Q4 09-10 onwards • ONGC – Natural Gas Supply from marginal fields • FOCUS ENERGY – Natural Gas Supply from Rajasthan field
Slide 28: Most Recent Laurels
Most Recent Laurels • Oil Industry Safety Award - 1st rank under Other Processing Plant category • Dahej-Panvel-Dabhol pipeline project awarded 3rd position in IPMA project excellence award 2009 • Oil and Gas Transportation Company for the year 2007-08 by Petrofed • Safety Innovation Award 2008 for
Slide 29: Conclusion
Conclusion Strong Financials Strong GoI Support Relatively New Asset Strong Gas Demand Dominant Position - Transmission Large Capex Plans in Place
Slide 30: Thank You
GAIL (India) Limited * 2008-2009 Thank You