GAIL (India) Limited · NSE:GAIL
GAIL (India) — Non-Deal Roadshow (April 2018)
37 slides from GAIL (India)'s roadshow presentation, April 2018
Slide 1: Investors' Presentation
GAIL (India) Ltd. India’s Youngest Maharatna Investors’ Presentation April 21-28, 2018 Abu Dhabi | London | New York | Boston | San Francisco 1
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: Agenda
Agenda Introduction Performance Highlights Industry Outlook & Opportunities Q&A
Slide 4: Introduction
Introduction 4
Slide 5: Overview: GAIL (India) Ltd.
Overview: GAIL (India) Ltd. • Over 11,000 Km of network (206MMSCMD) • Pursuing for expansion, Participation in 5 MMTPA LNG Regasification Facility at Dabhol • Long-term Import Portfolio: 24 MMTPA • Domestic market share ~ 15% • Petrochemical Plant in Pata( UP) with capacity of 0.81 MMTPA + 0.28 MMTP
Slide 6: Shareholding Structure & Share price movement
Shareholding Structure & Share price movement Market Capitalization as on 31st Mar’18: $ 11,506 mn Mutual Funds CPSEs 12.16% 7.38% 25 9 Foreign Others Portfolio 9.58% 8 Investors 17.29% 20 7 Volume (in mn) 6 Paid up Equity 15 $ 350 mn $/Share 5 4 10 3 President of India 5 2 53.59% 1 0 0 Year 13-14 1
Slide 7: Presence in Gas Value Chain
Presence in Gas Value Chain Exploration and Production Fertilizer Natural Gas (Methane, Ethane, Propane, Butane, Pentane ) Petrochemical Gas Power Pipelines Gas Pipelines City Gas LNG Regasification Gas Processing Imported LNG (LHC/LPG) Petrochemicals Methane : Fertilizer, Power, CGD Ethane : Petroc
Slide 8: Global Presence
Global Presence China Gas USA GGUI (Eagle Ford Basin) CHINA GGULL (Dominion Cove) GAIL-Sabine Pass MYANMAR EGYPT Myanmar-China Gas Pipeline A1, A3 E&P Blocks Equity in 2 Retail Gas Companies SINGAPORE GAIL Global (Singapore) Pte. Limited
Slide 9: GAIL's Commitment to Sustainable Development
GAIL’s Commitment to Sustainable Development In FY 17-18 GAIL installed India’s second largest solar PV rooftop of 5.76MW at the country’s largest natural gas based petrochemical complex at Pata. This led to total renewable portfolio of GAIL to over 128 MW GAIL is now the a part of ‘FTSE4 Good
Slide 10: GAIL Hriday – CSR Initiative of GAIL
GAIL Hriday – CSR Initiative of GAIL SWACHH BHARAT AROGYA KAUSHAL (Health) (Skill Dev.) UJJWAL UNNATI (Education) HRIDAY (Rural Dev.) SASHAKT SAKSHAM (Care for elderly & differently abled) (Women empowerment) HARIT (Environment projects) GAIL has incurred 2.26% and 2.6% of the average Profit of the
Slide 11: Performance Highlights
Performance Highlights 11
Slide 12: Major Highlights of FY 2017-18
Major Highlights of FY 2017-18 GAIL’s First LT-LNG cargo from USA to India - ‘Meridian Spirit’ received at Dabhol on 30th March 2018 GAIL favourably renegotiated LT Gas Purchase Contracts with Exxon Mobile & Gazprom De-merger of LNG Block at RGPPL is approved; New Entity Konkan LNG Pvt Ltd. commence
Slide 13: Major Highlights of FY 2017-18
Major Highlights of FY 2017-18 Loan Repayment of ~ $ 468 mn including prepayment of ~ $ 140 mn PNGRB Authorized Barauni-Guwahati P/L (1,300 km) to GAIL New Long Term Tie-ups for Sale of Natural Gas ~ 3.36 MMTPA Additional Long Term Tie-up with existing Customers ~ 1.67 MMTPA Sale of Gorgon RLNG comm
Slide 14: Physical Performance up to Q3 FY 2017-18
Physical Performance up to Q3 FY 2017-18 Gas Volume Trend Gas Transmission Mix Gas Marketing Mix (MMSCMD) 4% 7%2% 9%3% 96 100 105 5% 6% 92 92 81 84 79 72 74 Q3 42% Q3 FY18 FY18 56% 26% 40% FY14 FY15 FY16 FY17 Upto Q3 Gas Transmission Gas Marketing FY18 APM/NAPM RLNG PMT Spot Mid Term RIL (TMT) Petro
Slide 15: Financial Performance (Standalone)
Financial Performance (Standalone) (in $ mn) Turnover (Gross)* Gross Margin (PBDIT)* 1311 1089 1033 9,571 9,067 889 7928 7,291 789 5,946 FY14 FY15 FY16 FY17 Upto Q3 FY14 FY15 FY16 FY17 Upto Q3 FY18 FY18 Profit Before Tax (PBT)* Profit After Tax (PAT)* 1056 722 809 831 559 678 481 523 467 339 FY14 FY
Slide 16: Segment Wise Share of Turnover & PBT
Segment Wise Share of Turnover & PBT (up to Q3 FY18) (in $ mn) 76 470 650 1% 4160 530 60 8% 11% $ 5,946 mn 70% 9% 1% Turnover 31 256 4% 31% 14 31 Profit before Tax 329 2% 4% $ 831 mn 40% 170 21% Gas NG LPG Trans Petchem LHC Unallocated Marketing Transmission incl. E&P 16
Slide 17: Financial Profile
Financial Profile Gross Block (in $ mn) Capital Employed ( in $ mn) Net Worth (in $ mn) 5540 7042 7464 4431 4572 4680 4834 6550 6574 6649 7200 5619 7153 6584 6644 FY14 FY15 FY16 FY17 Upto Q3 FY14 FY15 FY16 FY17 Upto Q3 FY14 FY15 FY16 FY17 Upto Q3 FY18 FY18 FY18 Loans ( in $ mn) Debt to Equity Ratio
Slide 18: Capex & Source of Funds
Capex & Source of Funds (in $ mn) 1400 1320 1320 1200 1025 1025 411 1000 299 800 248 621 621 600 260 400 559 660 200 466 0 62 Capex Source of Fund Capex Source of Fund Capex Source of Fund FY 2017-18 FY 2018-19 FY 2019-20 Capex Borrowings Grant Internal Generation 18
Slide 19: Capital Expenditure
Capital Expenditure (in $ mn) FY17-18 FY18-19E FY19-20E $ 621 mn $ 1,025 mn $1,320 mn 89, 14% 47, 4% 23, 2% 8, 1% 70, 7% 241, 18% 84, 13% 16, 1% 5, 1% 444, 72% 901, 88% 1040, 79% Pipeline E&P Equity Investments Operational Capex * capital expenditure include plan, non-plan and operational capex 19
Slide 20: Projects / Initiatives (Ongoing & Upcoming)
Projects / Initiatives (Ongoing & Upcoming) 4000+ Km gas pipelines under execution in Eastern and Southern India Jamnagar-Loni LPG Pipeline Expansion (2.5 MTPA to 3.25 MTPA) Greenfield Petrochemical Project in Andhra Pradesh in JV with HPCL (Under Study) Coal Gasification at Talcher in JV wi
Slide 21: Industry Outlook
Industry Outlook 21
Slide 22: Global Primary Energy Basket – A Comparison
Global Primary Energy Basket – A Comparison Nuclear Hydro Region Oil Natural Gas Coal Renewables TPE (MTOE) Energy electric World 33.3% 24.2% 28.0% 4.5% 6.8% 3.2% 13376 OECD 37.7% 27.0% 16.5% 8.1% 5.7% 4.9% 5529 Non- OECD 30.1% 22.1% 36.4% 1.9% 7.7% 1.9% 7747 Asia Pacific 27.9% 11.7% 49.4% 1.9% 6.6%
Slide 23: India's Primary Energy
India’s Primary Energy 800 724 Natural Gas Share in India’s Figures are in MTOE 685 primary energy mix has gone 700 638 down from 11% in 2010 to 596 6.2% in 2016. 600 563 524 535 480 500 412 397 400 360 298 324 271 Renewables 278 251 Hydro electric 300 Nuclear Energy 45 200 46 41 55 49 46 Coal 46 56
Slide 24: 15% Share of Gas in Primary Energy Mix
15% Share of Gas in Primary Energy Mix – What it Translates to 697 610 625 347 361 310 139 139 139 BP Energy Outlook IEA World Energy Outlook IESS 2047 2016 - Current Consumption 2030- Estimated Consumption 2030 - Estimated Consumption at 15% share in PE Mix (MMSCMD) As per various projections, ga
Slide 25: Historical Production & Consumption Pattern
Historical Production & Consumption Pattern 180 162 155 160 144 139 140 134 126 128 124 128 120 112 113 104 103 100 94 Declining 74 74 79 73 domestic 80 69 68 production is a 60 major concern 40 for Indian gas 20 market 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-1
Slide 26: LNG imports have consistently increased over the years
LNG imports have consistently increased over the years 180 100% 161.5 160 154.6 90% 144.3 144.1 139.1 80% 140 133.7 128 127.5 124.2 70% 120 103.9 103 60% 100 50% 51% 41% 45% 50% 80 38% 73.1 69.9 40% 30% 57.9 60 29% 28% 27% 50.8 48.6 30% 22% 22% 42.1 39.6 40 32.4 35.5 29.9 28.9 20% 20 10% 0 0% 2007-0
Slide 27: Natural Gas Consumption Pattern - India (2017-18)
Natural Gas Consumption Pattern - India (2017-18) Sector-wise Break-up Gas-wise Break-up MMSCMD MMSCMD 47.63, 33% 39.76, 28% Fertilizer Power 71.06, 49% Domestic 73.06, 51% CGD RLNG Others 33.49, 23% 23.24, 16% Gas consumption during FY (2017-18), ~144 MMSCMD Power and Fertiliser - Anchor Markets In
Slide 28: India Gas Sectoral Demand Projections till 2021-22
India Gas Sectoral Demand Projections till 2021-22 Fertilizers Power CGD Sector Steel & Sponge iron Others All fig. in MMSCMD 200 180 160 140 120 100 80 60 40 20 0 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Actuals Projection Sector 2015-16 2016-17 2017-18 3 year CAGR 2018-19 2019-20 20
Slide 29: Gas pipeline infrastructure in India
Gas pipeline infrastructure in India Length & Design including Category Capacity Spurlines (MMSCMD) (Km) Existing Network ~ 16000 423 (GAIL’s -68%) GoI authorized Pipelines being ~ 4300 32 executed by GAIL PNGRB authorized ~9200 485 Pipelines since 2011 Total ~29500 940 Thin lines Existing Bold line
Slide 30: Regasification Terminals in India
Regasification Terminals in India DAHEJ I & II 10 + 5 mmtpa 2.5 (under Exp) MUNDRA 5 mmtpa Chhara Kolkata 5 mmtpa 2.5 mmtpa Jafrabad(FSRU) DHAMRA 5 mmtpa 5 mmtpa HAZIRA KAKINADA 5 mmtpa 3-5 mmtpa DABHOL Existing LNG Terminal Krishnapatnam 1.4 + 3.6 mmtpa (30 MMTPA) 2.5 mmtpa JAIGARH Under Constructi
Slide 31: Petrochemical business Outlook
Petrochemical business Outlook… CAGR of growth in $40 billion Indian Petrochemicals industry ~ 14 % Indian Petrochemicals industry likely to reach $100 billion by 2020 India’s per capita consumption of plastics is just 11 kg vs. China per capita consumption of 38 kg. World average of per cap
Slide 32: Petrochemical business Outlook
Petrochemical business Outlook (in KTA) Actual Projections Particulars 2017-18 2018-19 2019-20 2020-21 Demand 5017 5400 5850 6320 PE Capacity 5655 5655 5655 6055 Demand 4765 5145 5560 6000 PP Capacity 5120 5120 5120 5120 Demand 3287 3485 3700 3915 PVC Capacity 1482 1482 1482 1482 Demand 13069 14030
Slide 33: Opportunities
Opportunities 33
Slide 34: Opportunities
Opportunities Share of Natural Gas in Indian energy mix declined from 10.23% in 2010 to 6.2% in 2015 GoI has targeted increasing the gas share from 6.2% to 15% in the Primary Energy mix – Gas consumption of ~300 MMSCMD is needed to reach 15% of PE mix at 2016 level Huge investments are being m
Slide 35: New Growth Areas for Gas
New Growth Areas for Gas LNG for Heavy vehicles LNG-run trucks represent a significant improvement over diesel fuel Building a network of fuelling stations to ensure the supply of LNG is major challenge Railways on LNG/CNG Railway to substitute 40% diesel by CNG in DEMUs under mission 41k Railways h
Slide 36: Government Thrust
Government Thrust Smart Cities NITI Aayog's 3 year agenda suggests extension of CGD to 100 smart cities NITI Aayog advocates to use gas for PNG and CNG Gas is ideal solution for assured and quality power with clean environment Essential to ban petcoke, diesel based power within city limits P
Slide 37: Thank you
Thank you 37