Annual Press Conference
New Delhi, 30th May 2011
4/8/2015
1
Presentation Itinerary
Reflections
Spotlights
Physical Performance
Financial Performance
Open Session
4/8/2015
2
Reflections - Global
Economic recovery gaining strength
% GDP growth
2009
2010
World
-0.5
5.0
USA
-2.6
2.8
Source : International Monetary Fund, World Economic Outlook Database, April 2011
High & Volatile Crude Oil Prices
 Political Turmoil in MENA : 35% suppliers of crude oil
 2010-11 : Highest Indian Crude Basket (ICB) Price (US$ 113.09/bbl)
 2011-12 : Highest Indian Crude Basket (ICB) Price (US $ 121.90/bbl)
Improvement in Refining Margins
 Gas oil - Dubai Crack USD 5.11 /bbl (2009-10) to USD 11.52/bbl (2010-11)
 MS-Dubai Crack USD 6.70/BBL (2009-10) to USD 8.36/bbl (2010-11)
Growing Concern for Environment
4/8/2015
3
Reflections - India
2nd fastest growing large Economy
% GDP growth
4/8/2015
China
India
FY 2011
9.6
8.6
FY 2010
10.3
7.4
FY 2009
9.2
6.7
4
Reflections - India
4th Largest Economy in terms of GDP (PPP)
Unit: Billion, International Dollar
USA
China
Japan
India
14,657.80
10,085.71
4,309.53
4,060.39
Source : International Monetary Fund, World Economic Outlook Database, April 2011
Primary Energy Consumption (Mtoe)
Biomass &
Wastes, 164.0
Other
Renewable,
1.0
Oil, 145
Gas, 36.0
Hydro, 10.0
Nuclear, 4.0
Coal, 261.0
4/8/2015
5 IEA
Source : World Energy Outlook 2010,
Reflections - India
MS, HSD,SKO & LPG Consumption
Million Tonne
Growth Driver
 Higher growth in automobile
sector
 4 wheeler sales (29.3%)
 2 wheeler sales (25.8%)
Total POL Consumption grew by 2.9% in 2010-11
4/8/2015
6
Spotlights – IndianOil
Highest ever Turnover of ` 3,28,744 crore
A Maharatna Company since Nov 2010
Refinery Capacity addition in 2010-11
 Haldia from 6 to 7.5 MMTPA
 Panipat from 12 to 15 MMTPA
Largest Refiner of the Country – 65.7 MMTPA
 IndianOil’s Refining Capacity Share - 34.7%
range of Petrochemicals joins IndianOil’s league
of top Brands
Added 358 KM of pipeline length during the year
4/8/2015
7
Physical
Performance
8
Marketing
IndianOil in every part in every heart
Domestic POL Sales & Exports
Market Share
48.7%
48.6%
64.5
68.2
70.0
60.0
50.0
3.6
1.1
2.5
6.5
0.5
4.5
1.8
2.5
6.2
0.5
Million Tonne
49.6%
70.8
4.0
1.7
2.38
5.97
0.55
40.0
30.0
28.0
30.1
6.0
2.8
5.1
2.5
6.0
2008-09
2009-10
31.59
20.0
10.0
0.0
2.8
5.8
1.6
5.77
3.14
6.35
2.54
Exports
Others
BIT
FO/LSHS
Lube Grease
LDO
HSD
SKO
ATF
MS
Naphtha
2010-11
Highest ever Petroleum Products Sales (Domestic), 66.8 MMT (5% Growth) in 2010-11
4/8/2015
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Marketing
Reaching out touching lives
LPG Domestic consumer base widened to over
618 lakh.
 Added more than 44 Lakh new consumers
Continued rural thrust for Inclusive Growth
 Commissioned 570 Kisan Sewa Kendras (KSK) out
of 820 new ROs
 Rajiv Gandhi Gramin LPG Vitaran Yojana
(RGGLVY) launched – 145 commissioned in 13
states
4/8/2015
10
Marketing Touchpoints
IndianOil in every part in every heart
~ 54% of India’s Oil Marketing Infrastructure
LPG Bottling Plants
89 (48.9%)
As on 1.4.2011
Petrol/Diesel Outlets
19,463 (46.4%)
Including 3517 KSKs
Bulk Consumer
Pumps
7,780 (88.8%)
Terminals/Depots
140 (40.7%)
SKO/LDO Dealerships
3,960 (60.0%)
4/8/2015
Aviation Fuel Stations
96 (52.8%)
LPG Distributorships
5,456 (51.8%)
Figures in Bracket indicate % share in Industry
11
Refining – Sterling Performance
Crude Throughput
Million Tonne
Highest-ever throughput in 2010 - 11
4/8/2015
12
Refining – Creating Milestones
More than 100% Capacity Utilization for 5
consecutive years
Highest ever Distillate Yield, 75.4 % wt
Lowest ever Specific Energy Consumption, 59.0
MBN
BS IV/III Grade MS/HSD Quality improvement
Projects completed in all Refineries
4/8/2015
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MBN - An energy index defined as Mbtu/Bbl/NRGF
Pipelines – Underground Highways
Million Tonne
Throughput
59.8
65.0
68.5
Products
Crude Oil
4/8/2015
Highest-ever throughput in 2010-11
14
Pipelines – Underground Highways
IndianOil’s cross country Pipelines network
spreads to 10899 km reaching new destinations
Transported 68.5 MMT of Crude Oil & Products,
the highest ever
Entered into a new era of Natural Gas
transportation
• Commissioned 132 Km long Dadri-Panipat RLNG pipeline
4/8/2015
15
R&D
Shaping Corporate Dreams
Formulations & Technologies developed
 132 Formulations developed – more than 80%
commercialized in 2010-11
 Cost effective Hydro-processing route developed
for ATF production
 Dual mode de-asphalting Technology developed
to enhance Distillate Yield
Patents Active – 212*
India
USA
Others
Total
Lubes
Ref.
Others
Total
111
48
53
212
39
86
87
212
4/8/2015
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(*As on 20.5.2011)
R&D
The Power of Possibilities
New Development Initiatives
 Servo Agro Spray Oil: An eco-friendly, Biodegradable, non-toxic & pesticide free Oil
developed & widely marketed
 Mosquito Larvaecide Oil developed with an
excellent field trial result
 Bio-Degradable Rubber Spray Oil: Approved by
Rubber Research Institute, Kottayam, Kerala
 ‘Hydrogen-CNG’ run 3 wheeler completed 18000
km long Field Trial
4/8/2015
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Petrochemicals – Forward Integration
Petrochemicals Sales
LAB
MEG
Polyethylene
PX-PTA
Polypropylene
652
104
113
151
540
412
939
TMT
528
447
128
124
124
2008-09
2009-10
2010-11
Market Leader in LAB Sales
New products launched in 2010-11: Polypropylene, Polyethylene & MEG
4/8/2015
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18
Gas – Target Growth Area
Gas Sales
Million Tonne
Highest-ever sales in 2010-11
4/8/2015
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Gas - Target Growth Area
Sales Volume increased by 21% to 2.3 MMT
IndianOil’s 1st LNG import Terminal at Ennore,
Tamil Nadu is under implementation
Bagged 3 major Cross Country Gas Pipeline Bids
in consortium with GSPC, HPCL & BPCL
 Mallavaram (AP) - Bhilwara (Rajasthan)
 Mehsana (Gujarat) - Bhatinda (Punjab)
 Bhastinda – Jammu- Srinagar (J&K)
4/8/2015
20
Exploration & Production –
Upstream Integration
Domestic Blocks : 13
GK-OSN-2009/1
GK-OSN-2009/2
MB-OSN-2004/1
AAP-ON-94/1
AA-ONN-2001/2
MB-OSN-2004/2
NK-CBM-2001/1
BK-CBM-2001/1
CB-ONN-2005/7
WB-OSN-2000/1
MN-OSN-2000/2
KG-DWN-2005/1
4/8/2015
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Exploration & Production –
Upstream Integration
Overseas Blocks : 10
Carabobo Project-1, Venezuela
Area 95/96, Libya
Area 86, Libya
Block 102/4, Libya
Farsi, Iran
Block 82, Yemen
Block 83, Yemen
OML 142, Nigeria
Block Shakthi, Gabon
4/8/2015
Block-K, Timor-Leste
22
Clean Energy & Sustainability
Pursuing low carbon energy business: Bid and
won 5 MW Solar PV Power Plant under
Jawaharlal Nehru National Solar Mission
“NPCIL-IndianOil Nuclear Energy Corporation”
JV incorporated in our pursuit of becoming
Integrated Energy major
Solar Lantern Initiative rolled out: More than
30,000 lanterns delivered in Rural households
4/8/2015
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Subsidiaries - Beyond Boundaries
75.1% Stake
• Storage, Terminaling
and Retail trade
Lanka IOC
Limited,
Sri Lanka
(2002)
4/8/2015
IOC Middle East
FZE, Dubai
(2006)
OVERSEAS
SUBSIDIARIES
100% Stake
• Sale of Lubricants in Middle
East countries
IndianOil
Mauritius
Limited,
Mauritius
(2001)
100% Stake
• Aviation,
Retail,
Storage & Quality
24
Assurance
Beyond Business - CSR
Spends upto 2% of retained profit of previous year for CSR
Corporate Social Responsibility focuses on
LPG Schemes
 Enrolled ~51,000 Rural BPL customers through RGGLVY
Community Development in areas of
 Education, Health & Drinking Water
‘Educational Scholarships’ to Deserving & Meritorious Students
 No. of students increased from 450 to 2600 per year
Promotion of Sports through ‘Sports Scholarship’
 No. of sportpersons increased from 77 to 150 per year
4/8/2015
Won 12 medals in Commonwealth Games, Delhi
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Capital Plan Expenditure : 2010-11
R&D
1% (Rs. 66 crore)
Marketing
1% (Rs. 114 crore)
BD
4% (Rs. 377 crore)
Petrochemicals
23%
(Rs. 2231 crore)
Refineries
59%
(Rs. 5836 crore)
Pipelines
12%
(Rs. 1205 crore)
Actual Expenditure in 2010-11: ` 9831 crore
XI Plan Expenditure Target : ` 45430.3 crore
4/8/2015
XI Plan Actual Expenditure (2007-11) : ` 38788.1 crore, (85.4%)
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Financial
Performance
4/8/2015
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Turnover
POL
Petrochemicals
Gas
` crore
3,28,744
2,71,095
2659
2831
6231
3528
264908
2009-10
4/8/2015
319683
2010-11
28
Profit Scenario
` crore
PAT
2950
PBT
4329
14106
9096
EBITD
11162
18860
16312
4/8/2015
2008-09
10221
2009-10
7445
2010-11
29
Contribution to Exchequer
` crore
State
Central
4/8/2015
30
Under Recoveries
50000
` crore
10000
0
1026
20000
MS
HSD
LPG (Dom)
SKO (PDS)
( ` Crore)
43112
30000
12648
18673
40000
10765
2010-11
TOTAL
2010-11
Compensation :
Discount from ONGC,OIL&GAIL
Bonds / Cash by Govt.
Total
Net unmet Under Recovery
4/8/2015
Under recovery in MS upto 25th June 2010
16704
22605
39309
3803
31
Under Recoveries (2011-12)
– HSD, SKO, LPG
As on date
Under
Recovery
HSD - `/ Litre
14.66
RSP
(at Delhi )
37.75
SKO (PDS) - `/ Litre
28.27
12.73
LPG (Domestic) - `/ Cylinder
329.73
345.35
Per Day Under Recovery ` 261 crore
Under Recovery of IOCL up to date during 2011-12 is ` 18248 Cr.
4/8/2015
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Rising Borrowings -
A growing Concern
` crore
During 2011-12, borrowings have increased by more than ` 15,000
Crore due to rising under recoveries on sale of regulated products.
4/8/2015
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Key Financial Ratios
Net worth
(Rs. crore)
Market
Capitalization
(Rs. crore )
EPS (Rs.)
Book Value /
Share (Rs.)
2008-09
43,998
46,240
12.2
181.2
2009-10
50,553
72,049
42.1
208.21
2010-11
55,332
81,154
30.67
227.90
4/8/2015
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Before we conclude…
A look at IndianOil Brands
4/8/2015
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35
OPEN SESSION
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