Annual Press Conference 2011-12 - Indian Oil Corporation Limited
Annual Press Conference 2011-12 - Indian Oil Corporation Limited
Annual Press Conference 2011-12 - Indian Oil Corporation Limited
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<strong>Annual</strong> <strong>Press</strong> <strong>Conference</strong><br />
<strong>2011</strong>-<strong>12</strong><br />
28 th May 20<strong>12</strong><br />
28 th May 20<strong>12</strong><br />
New Delhi
Structure of the Presentation<br />
A glance at oil industry<br />
Overview of <strong>Indian</strong><strong>Oil</strong><br />
Accomplishments<br />
Financials<br />
Open forum<br />
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<strong>Oil</strong> & Gas Snapshot<br />
<strong>Oil</strong> prices remain volatile<br />
European economy shows little signs of recovery<br />
US turns net exporter of petroleum products<br />
Depreciating rupee – a worry for oil importers<br />
Rajasthan crude oil production touches 175,000 bbl/<br />
day<br />
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<strong>Oil</strong> & Gas Snapshot<br />
Domestic refining capacity up by 10 % to 213.2 MMTPA<br />
Domestic POL demand grows by 4.9% over 2010‐11<br />
11<br />
Uncertainties engulf domestic gas output<br />
India – 3 rd largest Asian LNG buyer in <strong>2011</strong><br />
Crude oil imports @ USD 141 billion, 7.5% of GDP<br />
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<strong>Oil</strong> Dynamics<br />
130<br />
Crude oil prices, US $/ bbl<br />
<strong>12</strong>5 Brent(Dated) t NYMEX WTI Dubai <strong>Indian</strong> basket<br />
<strong>12</strong>0<br />
115<br />
110<br />
105<br />
100<br />
95<br />
90<br />
85<br />
80<br />
Apr‐11 May‐11 Jun‐11 Jul‐11 Aug‐11 Sep‐11 Oct‐11 Nov‐11 Dec‐11 Jan‐<strong>12</strong> Feb‐<strong>12</strong> Mar‐<strong>12</strong><br />
<strong>Indian</strong> crude basket average price moved up by $27/ bbl:<br />
from $ 85/ bbl in 2010‐11 to $ 1<strong>12</strong>/bbl in <strong>2011</strong>‐<strong>12</strong><br />
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<strong>Indian</strong><strong>Oil</strong> –A Degree of Brilliance<br />
10 group refineries<br />
Crude, products and gas<br />
pipelines<br />
Robust marketing network<br />
Petrochemicals – spreading<br />
footprints<br />
R&D –among the best<br />
Gas marketing, infrastructure<br />
Renewables, nuclear, upstream<br />
ventures<br />
Fortune Global 500, <strong>2011</strong> position: 98 ‐ the highest ranked <strong>Indian</strong> Company
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<strong>Indian</strong><strong>Oil</strong> – Quick Facts<br />
1 st Board meeting of the Maharatna Board in March<br />
20<strong>12</strong><br />
For the first time turnover surpasses 4,00,000 crore<br />
mark (Rs. 409,957957 crore)<br />
Domestic sales exceed 70 MMT during <strong>2011</strong>‐<strong>12</strong><br />
<strong>12</strong><br />
7 more cities placed on the Euro‐IV map, taking the<br />
total to 20<br />
Robust growth plans ‐ ongoing projects worth<br />
Rs. 46,000 crore<br />
5/28/20<strong>12</strong> <strong>Indian</strong>oil – The Energy of India<br />
<strong>Annual</strong> <strong>Press</strong> <strong>Conference</strong> FY <strong>2011</strong>-<strong>12</strong><br />
10
Refineries – Challenging the Limits<br />
Crude throughput, MMTPA<br />
50 0.7<br />
53.0<br />
55.6<br />
2009‐10 2010‐11 <strong>2011</strong>‐<strong>12</strong><br />
Highest‐ever throughput of 55.6 MMT<br />
Over 100% capacity utilization for 5 th consecutive year<br />
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Refineries – Challenging the Limits<br />
► Highest‐ever distillate yield of 77.8%<br />
► Increasing capacity to process opportunity<br />
crudes<br />
► Lowest‐ever ever energy consumption of 57 MBN in<br />
<strong>2011</strong>‐<strong>12</strong><br />
► Commissioned DHDT at Bongaigaon for BS‐IV<br />
Diesel quality<br />
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Pipelines – par Excellence<br />
Pipeline throughput, MMTPA<br />
23.5 26.1<br />
28.0<br />
41.5 42.5 47.5<br />
2009‐10 2010‐11 <strong>2011</strong>‐<strong>12</strong><br />
Products<br />
Crude <strong>Oil</strong><br />
Highest‐ever throughput of 75.5 MMT<br />
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Pipelines – par Excellence<br />
► 118% capacity utilization for crude oil pipelines<br />
► Injection of heavy Rajasthan crude oil<br />
► Continuous improvement in energy efficiency<br />
► Capacity augmentation:<br />
• Chennai‐Trichi‐Madurai pipeline: from 1.8 to 2.3<br />
MMTPA<br />
• Chennai‐Bengaluru pipeline: from 1.45 to 2.45<br />
MMTPA<br />
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Marketing<br />
Domestic POL Sales<br />
Figs in MMT<br />
80.0<br />
70.0<br />
60.0<br />
50.0<br />
% Market Share<br />
48.6%<br />
63.6<br />
6.1<br />
49.6%<br />
66.7<br />
6.6<br />
5.8 6.3<br />
6.0 5.8<br />
70.1<br />
7.0<br />
6.7<br />
5.4<br />
49.7%<br />
LPG<br />
Naphtha<br />
40.00<br />
HSD<br />
30.0<br />
10.0<br />
30.1 31.6 34.1<br />
6.2 6.0 5.0<br />
MS<br />
ATF<br />
SKO<br />
LDO<br />
FO / LSHS<br />
20.0<br />
Lube Grease<br />
0.0<br />
2009‐10 2010‐11 <strong>2011</strong>‐<strong>12</strong><br />
Highest‐ever petroleum products sales in <strong>2011</strong>‐<strong>12</strong><br />
Bitumen<br />
Others<br />
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Marketing –Reaching out, Touching lives<br />
LPG Bottling<br />
Plants, 89 (48.9%)<br />
Consumer<br />
Pumps, 6218<br />
(86%)<br />
Marketing Touch Points<br />
(% of industry)<br />
Retail<br />
Outlets, 20575<br />
(45.6%), includes<br />
4225 KSKs<br />
Terminals/Depots,<br />
139 (41.6%)<br />
SKO/LDO<br />
Dealerships, 3954<br />
(59.9%)<br />
Aviation Fuel<br />
Stations, 96<br />
(50.5%)<br />
LPG<br />
Distributorships, 5<br />
934 (51.6%)<br />
includes 522<br />
RGGLVs<br />
Over 37000 Touch Points, 52% of the industry infrastructure<br />
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Marketing –Reaching out, Touching lives<br />
► Market leader with 49.7% market share<br />
► Retail Outlets network surpasses 20,000 mark<br />
► Over 1000 ROs automated during the year<br />
► Domestic LPG customer base expanded by 50<br />
lakh, touches 6.68 crore<br />
► Aadhar‐based LPG pilot launched in Mysore<br />
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R & D ‐ Innovating for a Cutting Edge<br />
► Commercialization of technologies<br />
• ‘DHDT and light naphtha isomerisation’ unit<br />
commissioned at Bongaigaon<br />
► Widening horizons<br />
• New petrochemicals and polymers labs<br />
• MOU with Department of Bio‐Technology (DBT) to<br />
set up “Advanced Bio‐energy Research Centre”<br />
• Commissioned fluidized bed gasification pilot<br />
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R & D ‐ Innovating for a Cutting Edge<br />
► Lubricants<br />
• 154 product tformulations developed<br />
d<br />
• Two indigenously developed synthetic aviation<br />
lubricants granted provisional clearance by<br />
CEMILAC<br />
► Patents<br />
• Six patents granted during the year<br />
Details of active patents:<br />
India USA Others Total Lubes Refineries Others Total<br />
119 46 50 215 42 101 72 215<br />
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PROPEL –Creating Footsteps<br />
Domestic petrochemicals sales, KT 1550<br />
652<br />
939<br />
217<br />
151<br />
658<br />
239<br />
528 447 542<br />
<strong>12</strong>4 <strong>12</strong>4 101<br />
2009‐10 2010‐11 <strong>2011</strong>‐<strong>12</strong><br />
LAB PX / PTA GLYCOLS POLYMERS<br />
2 nd largest petrochemicals capacity share in the country<br />
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PROPEL –Creating Footsteps<br />
Products profile<br />
Polyolefins<br />
• Polyethylene<br />
• Poly‐propylene<br />
<strong>Indian</strong><strong>Oil</strong>’s<br />
Relative domestic market share (%)<br />
28%<br />
25%<br />
19%<br />
Aromatics<br />
• PTA<br />
• LAB<br />
31%<br />
14%<br />
14%<br />
18%<br />
Glycols<br />
• MEG<br />
• DEG<br />
• TEG<br />
5%<br />
LAB PTA Polymers Glycols<br />
2010‐11 <strong>2011</strong>‐<strong>12</strong><br />
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Gas –Fuel of the 21 st Century<br />
R‐LNG sales, MMT<br />
1.9 91<br />
2<br />
.31<br />
2.93<br />
2009‐10 2010‐11 <strong>2011</strong>‐<strong>12</strong><br />
Highest‐ever R‐LNG sales in <strong>2011</strong>‐<strong>12</strong><strong>12</strong><br />
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Gas –Fuel of the 21 st Century<br />
► Increasing share in country’s infrastructure<br />
• Pre‐project activities in advanced stage for Ennore<br />
LNG Terminal<br />
• MoU signed with Dhamra Port Company Ltd.<br />
• SPVs formed for execution of gas pipeline projects<br />
► Upcoming markets<br />
• Memorandum of Co‐operation with DMICDC<br />
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E&P –Overseas Exploration Blocks<br />
Carabobo Project-1, Venezuela<br />
Area 95/96, Libya<br />
Area 86, Libya<br />
Block 102/4, Libya<br />
Farsi, Iran<br />
Block 82, Yemen<br />
Block 83, Yemen<br />
OML 142, Nigeria<br />
Block Shakthi, Gabon<br />
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E&P – Domestic Exploration Blocks<br />
GK‐OSN‐2009/1<br />
GK‐OSN‐2009/2<br />
MB‐OSN‐2004/1<br />
AAP‐ON‐94/1<br />
AA‐ONN‐2001/2<br />
NK‐CBM‐2001/1<br />
BK‐CBM‐2001/1<br />
MB‐OSN‐2004/2<br />
CB‐ONN‐2010/6<br />
CB‐ONN‐2005/2<br />
CB‐ONN‐2005/7<br />
WB‐OSN‐2000/1<br />
MN‐OSN‐2000/2<br />
KG‐DWN‐2005/1<br />
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Clean Energy ‐ The Power of Choice<br />
► Grid‐connected 5 MW PV solar power plant<br />
commissioned in Rajasthan<br />
► Wind capacity enhanced to 37.8 MW from 21<br />
MW<br />
► Construction started at Rajasthan Atomic<br />
Power Project –7 & 8 : A JV project of <strong>Indian</strong><strong>Oil</strong><br />
and NPCIL<br />
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Capex Plans ‐ Achievement of a Goal is the Start<br />
of a New Road<br />
Five Year Plans 29261<br />
Actual plan Capex expenditure –XI Plan<br />
(2007‐20<strong>12</strong>): 20<strong>12</strong>): Rs. 48,655 crore<br />
XII Plan<br />
56,200<br />
(Proposed)<br />
13063<br />
3906<br />
X Plan<br />
XI Plan<br />
452 294<br />
1679<br />
17,930<br />
45,430<br />
Refineries Petrochemicals Pipelines Marketing R&D Others+E&P<br />
Actual plan Capex during <strong>2011</strong>‐<strong>12</strong>: Rs. 11073.5 crore<br />
On‐going projects: Rs. 46,000 crore<br />
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Global Agenda – Leveraging the Core<br />
competencies<br />
<strong>Indian</strong><strong>Oil</strong><br />
Mauritius<br />
Ltd. (IOML)<br />
(100% Stake<br />
• Aviation, terminaling<br />
and retail<br />
• Leader in aviation<br />
Lanka IOC<br />
Ltd.<br />
(75.1% Stake)<br />
• Storage, terminaling<br />
and retail business<br />
• 157 retail outlets<br />
IOC Middle<br />
East FZE<br />
(100% Stake) k)<br />
• Marketing of Lubes<br />
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CSR –for Inclusive Growth<br />
► CSR Thrust Areas<br />
• Drinking water<br />
• Health & medical care<br />
• Education/scholarships<br />
• Sports po promotion oto<br />
• National heritage<br />
• National causes & natural<br />
calamities<br />
• LPG schemes<br />
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CSR –for Inclusive Growth<br />
► New CSR initiatives<br />
• <strong>Indian</strong><strong>Oil</strong> Sachal Swasthya<br />
Seva in AP & UP<br />
• <strong>Indian</strong><strong>Oil</strong> TATA Care<br />
Centre, Kolkata<br />
• Development of tourist<br />
friendly facilities at<br />
Konark and Khajuraho<br />
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Data in finance slides is only indicative<br />
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Turnover<br />
T/O, Rs. crore<br />
6102<br />
3,28,652<br />
2830<br />
294763<br />
4,09,957<br />
4059<br />
357861<br />
<strong>12</strong>006<br />
24957<br />
36031<br />
2010‐11 <strong>2011</strong>‐<strong>12</strong><br />
Crude sales POL Petrochemicals Gas<br />
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Profit…<br />
Attributes, Rs. crore <strong>2011</strong>‐<strong>12</strong> 2010‐11 Variance<br />
EBITDA (Before Exceptional item) 21921 16316 5605<br />
Less: Exceptional item 7708 0 (7708)<br />
Interest Expenditure 5591* 2673 (2918)<br />
Depreciation 4868 4547 (321)<br />
Profit/ (Loss) Before Tax 3754 9096 (5342)<br />
Tax : Current Tax 894 1356 462<br />
Mat credit 0 (<strong>12</strong>86) (<strong>12</strong>86)<br />
Deferred Tax (1095) 1581 2676<br />
Profit/ (Loss) After Tax 3955 7445 (3490)<br />
* Includes approximate interest on delayed on receipt of cash compensation of Rs. 2800 crore, calculated<br />
based on average SBI CC rate<br />
Quarter‐wise Profit & Loss, Rs. crore<br />
Year Q 1 Q2 Q3 Q4 Total<br />
<strong>2011</strong>‐<strong>12</strong><strong>12</strong> (3718) (7485) 2488 <strong>12</strong>670 3955<br />
2010‐11 5293 (3388) 1635 3905 7445<br />
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Under‐recoveries<br />
Gross Under‐recoveries (Rs. crore) 2010‐11 <strong>2011</strong>‐<strong>12</strong><br />
SKO (PDS) <strong>12</strong>648 17913<br />
HSD 18673 42866<br />
LPG (Domestic) 10765 14690<br />
MS 1026 N/A<br />
Total Under‐recovery 431<strong>12</strong> 75469<br />
MS (Post de‐regulation) 1042 2236<br />
Grand Total 44154 77705<br />
Product‐wise under‐recoveries recoveries as on 16.5.20<strong>12</strong><br />
Rupees<br />
SKO (PDS)/ litre 31.41<br />
HSD/ litre 13.64<br />
LPG (Domestic) per cylinder 479.00<br />
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Under‐recoveries<br />
Under‐recoveries <strong>2011</strong>‐<strong>12</strong><br />
Rs. crore<br />
2236<br />
Rs, crore<br />
Gross Under Realization on<br />
SKO (PDS), HSD and LPG<br />
(Dom)<br />
Add under‐realization on<br />
MS, post de‐regulation<br />
75469<br />
2236<br />
75469<br />
29961<br />
45486<br />
Total 77705<br />
LESS<br />
Discount from Upstream<br />
Companies<br />
29961<br />
Govt. Budgetary Support 45486<br />
Unmet Under‐ Recovery /<br />
Realization<br />
2258<br />
Gross Under<br />
Recovery<br />
Up Stream<br />
Discount<br />
Budget<br />
Support<br />
MS Under<br />
Realization<br />
2258<br />
Unmet<br />
Under‐<br />
Recovery<br />
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Borrowings…<br />
80000<br />
70000<br />
60000<br />
50000<br />
Rs. crore<br />
44,566<br />
52,734<br />
75,447<br />
2<br />
1.8<br />
1.6<br />
1.4<br />
D/E Rat tio<br />
40000<br />
1.27<br />
1.2<br />
30000<br />
0.88<br />
0.95<br />
1<br />
20000<br />
0.8<br />
10000<br />
0<br />
1,526 2,670<br />
5,591<br />
31.3.2010 3 31.3.<strong>2011</strong> 3 31.3.20<strong>12</strong><br />
3 Interest Cost Borrowings Debt Equity Ratio<br />
0.6<br />
0.4<br />
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Contribution to Exchequer<br />
Rs. crore<br />
77620 78885<br />
57680<br />
139<br />
3796 62<br />
49027<br />
26541<br />
31<br />
396 658<br />
2986 64<br />
States<br />
Central<br />
2009-10 2010-11 <strong>2011</strong>-<strong>12</strong><br />
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