Académique Documents
Professionnel Documents
Culture Documents
www.ril.com 2
Contents
Performance
PerformanceHighlights
Highlights
Financial
FinancialPerformance
Performance
Business
BusinessReview
Review
Summary
Summary
www.ril.com 3
Performance Highlights
E&P
Days of ‘easy’ oil over – paradigm shift in prices
KG D6 projects (D1, D3 gas and MA oil) on schedule for commissioning this year
Development plans for NEC-25 and MA oil field (KG-D6) submitted to DGH.
Development plan for CBM blocks approved
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Performance Highlights
R&M
Refining complexity, higher yields, superior product mix and wide crude slate enabled
RIL to achieve superior GRM
GRM at $15.5/bbl for the quarter and at $15/bbl for the full year
Petrochemicals
Strong domestic demand for polyester (up 17%) and polymer (up 15%) support
volume growth
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Financial
FinancialPerformance
PerformanceFY
FY2007-08
2007-08
Financial
FinancialPerformance
PerformanceFY
FY2007-08
2007-08
Financial Results – FY 2007-08
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Financial Results – FY 2007-08
%
Change %
4Q FY08 3Q FY08 4Q FY07 FY08 FY07
over 4Q Change
FY07
38,697 35,880 29,276 32% Turnover 139,269 118,354 18%
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Segment Results
(In US$ Million)
4Q 3Q 4Q Chg. Over FY08 FY07 Change
In US$ Million
FY08 FY08 FY07 4Q FY07 YoY
Refining
7,150 6,636 4,837 48% Revenues 25,110 19,768 27%
708 663 523 35% EBIT 2,575 1,777 45%
9.9% 10.0% 10.8% EBIT (%) 10.3% 9.0%
15.5 15.4 13.0 GRM (US$ / bbl) 15.0 11.7
Petrochemicals
3,519 3,224 2,892 22% Revenues 13,210 11,588 14%
365 451 318 15% EBIT 1,773 1,513 17%
10.4% 14.0% 11.0% EBIT (%) 13.4% 13.1%
Oil and Gas
206 192 126 63% Revenues 673 470 43%
111 98 70 59% EBIT 375 295 27%
54.0% 51.1% 55.3% EBIT (%) 55.6% 62.7%
Net Impact
EBIT Variance Rs. Crore
Higher EBIT due to higher operating profit from all three operating segments -
refining, petrochemicals and oil & gas
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Net Profit – FY08 Vs FY07
(Rs crore)
Net Profit FY07 11,943
Operating Profit 3,260
Net Profit (before Other Income 417
exceptional) up by
Rs 3,318 crore Interest 112
compared to
previous year
Depreciation 32
Tax 439
Net Profit FY08 15,261
Improved operating profits from Refining and higher other income enhance
profitability
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Business Mix for FY08
Petchem
33.7%
Petchem Refining
Refining 37.5% 54.4%
64.1%
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Financial Ratios – FY08
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Capex – FY08
4Q 3Q 4Q
FY08 FY08 FY07 (in US$ Million) FY08 FY07
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RIL Financial: 5 Year Trends
(Rs. Crores)
80,000 15,000
60,000 10,000
40,000
5,000
20,000
0 0
FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08
16,000 PAT
12,000
8,000
30%CAGR
30% CAGRin
in
PAT
PAT
4,000
0
FY04 FY05 FY06 FY07 FY08 17
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RIL Financial: 5 Year Trends (Contd.)
30%
350,000 Market Cap. (Rs. Crs.) ROCE - ROE ROCE ROE
300,000 25%
250,000 %
54 20%
–
GR
200,000
CA 15%
150,000
10%
100,000
5%
50,000
0 0%
FY04 FY05 FY06 FY07 FY08 FY04 FY05 FY06 FY07 FY08
Source: Bloomberg
www.ril.com 19
Business
BusinessReview
Review
Exploration
Exploration&&Production
Production(E&P)
(E&P)
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E&P Environment
120 ($/bbl) IPE Brent Futures
Energy demand driven by secular growth Brent Average
May-08
Jun-08
Jul-08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
Energy prices to remain firm
– Era of Easy oil finds are over IHS/CERA Upstream Capital Costs Index
NOCs had access to 1% of the world’s Gas Reserves split between NOCs and
IOCs
production by 2030
Source:Industry Reports
www.ril.com 23
New Resources in Challenging Frontiers
Future oil and gas deepwater potential in the world
New Finds are in Frontier areas
– Arctic, Deepwater, Oil Sands, Shale
DEPTH
Technology Challenges
Expensive
– Subsurface Cutting /Breaking
Edge
– Drilling Technologies !
– Field Development
– Production
18
– Deal between a Japanese utility and
16
with Abu Dhabi at $13/MMBTU
14
$10/MMBTU 10
11
12
13
14
15
16
17
18
19
20
21
22
23
20
20
20
20
20
20
20
20
20
20
20
20
20
20
between $8/mmbtu to $18/mmbtu Asian LNG HH NBP Crude Oil
Tight markets and record prices for long-term contracts at above $ 10 /MMBTU
www.ril.com Source: Platts, Energy Intel 25
Indian Business Environment
economy 250
226
196 197 202
200 190
179
Gas demand set to treble by 2012
150
from current level of 110 MMSCMD - 110
120
50
12%
20%
Investments to spur connectivity and
22%
88%
61%
38%
www.ril.com 27
RIL Upstream Business
Largest acreage KG-D6 gas 30% stake in East –West Bulk gas
in the private KG-D6 oil PMT fields pipeline network marketing
sector NEC25 gas — Joint under Development of
Domestic CBM gas operator development CGD projects
portfolio of 33 oil PMT — 17MMscmd Plans to create
and gas blocks of gas prod. national gas grid
5 CBM blocks and
PMT (Pre- 40,000bopd
NELP) of oil (gross)
International Oil production in
blocks Yemen
www.ril.com 29
RIL E&P Business – Journey So Far
KG Blocks
NEC Blocks KG D6
MN Blocks NEC 25 KG D6 (D1/D3 &
CY Blocks MA) KG D6 KG D6
GS 01 NEC25
GS Blocks NEC25 PMT
CY D5 PMT
CB Blocks KG III 5 & 6 Yemen
KG -V-D3 Yemen
KK Blocks Yemen
KGD4
International
Blocks
www.ril.com 30
RIL – Domestic Portfolio
No. of Acreage - Deepwater
Description
Blocks '000 Sq KM Acreage %
PMT 2 2.7
Pre NELP 4 22.5
Nelp 1 5 38.7 59%
Nelp 2 2 14.6
Nelp 3 9 113.5 99%
Nelp 4 1 25.6 100%
Nelp 5 5 51.5 99%
Nelp 6 7 76.1 100%
CBM 5 3.9
International 11 78.8 70%
51 427.8 80%
Success Ratio
Success
Drilled Success
Rate
Deep Water - D6 24 18 86%
Deep Water -
9 4 44%
Others
Shallow Water 21 16 76%
Relinquished 9 - -
TOTAL 63 38 63%
Amongst the fastest growing private sector E&P companies in the world
www.ril.com 31
RIL - International Portfolio
Discoveries in 2007-08
Basin Location Block & Well Disc. No. Discovery
Guj.
SW GS-01 - B1 D33 Gas
Saurashtra
KG basin Discoveries:
– Extension of the 'Biogenic Gas
Corridor' across the basin
Cauvery Discovery
– Field Delineation and reservoir
characterization underway
– Further prospecting underway to
establish the extents of this play
Gujarat Saurashtra Discovery
– Discovery establishes existence of
a petroleum system
– Extension of play fairway is being
evaluated
– 3 deepwater 500
400
– 1 onshore rig 300
construction 0
2003 2004 2005 2006 2007 2008 2009 2010
24
22
20
18
16
Time (Years)
14
12
Global Average of 9 Years
10
8
6
4
2
0
Project X
KG-D6-RIL
Project T
Project Z
Project I
Project J
Project C
Project D
Project H
Project N
Project R
Project U
Project L
Project G
Project O
Project Q
Project F
Project M
Project A
Project B
Project E
Project K
Project P
Project S
Project V
Project Y
Project AA
Project W
Field – Operator
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Source: Top 170 E&P Projects to Change the World (Goldman Sachs, February 2007) 36
Operating under severe resource constraints
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
development efforts
– They have been contracted at very
competitive rates
Source:Deutsche Bank 37
www.ril.com
D1 D3 Gas Fields - Project on Track for First Gas by
2H 2008
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Offshore Installation Works
Audacia – Stringer
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Lorelay laying pipelines
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Lorelay installing PLET
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Sub-Sea Installation Activities: Express
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Installation of Deepwater PLEM
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CRP Installation Completed
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LFP to OT Pipe Lines & Umbilicals
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Onshore Terminal - Then …….and Now
April 2008
May 2006
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MEG Regeneration / Reclamation area
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Fuel Gas Skids
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Flare and Hot Oil Heaters
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Chemical Injection skids – MEG area
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MA Status - Project on Track for First Oil by
2H 2008
Drilling & Well Completion: 82% Subsea Supply & Logistic and FPSO: 95% complete
Complete Installation: 85% complete
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53
Key Components -MA Field Development
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FPSO
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FPSO
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FPSO
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FPSO Handling Capacities
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Key Challenges
Resource constraints
Development of NEC25
www.ril.com 60
Panna-Mukta and Tapti Update
GAIL nominated for off take of entire PMT JV gas. Effective price at $5.57
to $5.73 per MMbtu
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Summary
Growing market and competitive pricing assures off take in the domestic
market
in other blocks
coming years
www.ril.com 62
Refining
Refining&&Marketing
MarketingBusiness
Business
www.ril.com 63
Global Business Environment
www.ril.com 64
Global Business Environment (Contd.)
New refining projects continuing to suffer from costs and time overruns
SUPPLY CONCERNS
$/BBL
NYMEX WTI Daily Closing Prices
115
105
90
kidnapping and militants attacks
85
OTHERS 80
75
– Weakening of US dollar 70
65
– Flow of investor funds into oil 60
50
activity: NYMEX sees all time 07
12 07
08
8
7
30 0 7
07
24 07
02 0 7
07
26 07
1 7 07
08
07
N0
N0
B0
L0
R0
P
UG
UG
PR
EC
N
CT
AR
AY
JU
SE
FE
JU
JU
JA
JA
NO
NO
AP
O
A
D
A
A
M
M
19
06
27
21
09
31
22
02
09
15
14
Bullish factors seem to persist in the short term
www.ril.com 66
Product Price Scenario
Gasoline margin in Asia remains stable due to restricted exports from China
25 25
20 20
15 15
10 10
D 7
07
Au 7
8
N 7
Se 7
Fe 8
7
M 8
D 7
M 7
Ju 7
07
Au 7
N 7
8
Se 7
Fe 8
7
M 8
7
O 7
Ja 7
-0
l- 0
-0
-0
-0
0
-0
r-0
-0
l- 0
-0
-0
-0
0
0
r-0
-0
n-
n-
n-
g-
b-
n-
p-
g-
b-
p-
ov
ct
ar
ay
ov
ct
ec
ar
ay
Ju
ec
Ap
Ju
Ap
Ja
Ju
O
M
30
Gasoline - Dubai Crack
25
20
15
Significant improvement in Jet/Kero
10
and Gasoil cracks during the last
5
- quarter of FY 2007-08
D 7
07
Au 7
8
N 7
Se 7
Fe 8
7
M 8
7
07
7
-0
l- 0
-0
-0
-0
0
0
r-0
0
-0
n-
n-
g-
b-
p-
ov
ct
ar
ay
ec
Ju
Ap
Ju
Ja
O
M
Source: Reuters
www.ril.com 68
RIL - Refinery Operating Highlights
Europe Africa
20% 18%
Americas
7%
Asia / Middle
East
55%
www.ril.com 70
Refinery Product Sales: FY08
2007-08 2006-07
Export Domestic Total Export Domestic Total
LPG - 2,712 2,712 - 2,671 2,671
HSD 11,482 929 12,411 9,147 2,031 11,178
MS 3,607 322 3,929 3,154 388 3,542
ATF 3,276 20 3,296 2,834 31 2,866
Naphtha 3,273 3,965 7,238 2,276 5,093 7,369
Propylene - 1,019 1,019 - 996 996
Others 510 4,469 4,979 243 4,990 4,990
22,147 13,437 35,584 17,655 16,200 33,612
16
15.0
14
11.7
12
10.3
US$ / bbl
10 8.8
8.9
8 7.6
6.1
5.1
6
4.9
4 4.8
2
0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
40000
0
FY03 FY04 FY05 FY06 FY07 FY08
24 Export Performance 22.1 18
16
20 63% CAGR in value 16.1 14
16 12
10
12
8
8 1.4 6
4
4 6.6 2
0 -
FY03 FY04 FY05 FY06 FY07 FY08
Volume (MMT) Value (US$ Billion)
www.ril.com 73
RIL Margin Trends
Vigilant OPEC not looking to add production even at all-time high prices
Ailing US economy leading to low interest rates, weaker dollar and flight to
Demand growth is expected to come from Asia Pacific, Middle East, Latin
America and Russia. US demand growth vulnerable to economic slow
down
www.ril.com 76
RPL Project Progress
Owns 250 retail outlets and 225,200 KL of storage capacity with 2 large
www.ril.com 78
Refining Business Summary
and Europe
Extended strength in refining margins seen till 2012 with continuing delays
supported
www.ril.com 79
Petrochemicals
Petrochemicals
www.ril.com 80
Business Environment: Polymers
Global
– Firm price trends across the value chain
– Global polymer demand growth strong at 5.5%
– New cracker capacities on-stream ( in million tonnes)
FPC, Taiwan Æ 1.2 (Q1FY08)
India
– Domestic demand grew by 15% year-on-year
– Aggregate consumption of PE, PP and PVC crossed 5 million tonnes
– Growth driven by infrastructure and flexible packaging
– Over 1 million tonne capacity added by producers in downstream
industries
www.ril.com 81
Product Deltas
USD/MT
Q4 FY08 Q3 FY08 Q4 FY07 FY08 FY07
150 95%
Capacity
100 90%
50 85%
0 80%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source -CMAI
In MMTPA
2007 2012
2007 2012
10%
23%
29%
31%
17%
9%
19% 10%
31%
21%
0-5 Yrs 5-10 Yrs 10-20 Yrs 20-30 Yrs 30+ Yrs
India
4% India
5%
China
23% China
Rest of the 28%
Rest of
World
World
50%
51% US US
22% 17%
Source : CMAI
3390
Balanced portfolio of gas based and low cost naphtha based assets
www.ril.com 87
Polymer Production: FY 2007-08
Industry RIL
www.ril.com 88
Polymers – Demand / Supply Outlook
PE
– Global demand at 68 MMT in 2007; growing at over 5% annually
– 50% incremental demand to come from China and India
– China and India growing 10% annually, aided by robust demand from
downstream user industries
PP
– Global demand grew by 5.6% to 44.5 MMT in 2007
– PP demand from China and India to rise 5 MMT in the next 5 years
– India is the fastest growing market with 14% annual growth
PVC
– Global PVC demand at 35.5 MMT in 2007 - a growth of 5% YoY
– China to provide impetus to PVC demand. Aggregate consumption to
rise to 15 MMT by 2012 from 10 MMT in 2007
– India would continue be the fastest growing market growing at 10%
www.ril.com 89
PE – Sector Outlook
www.ril.com 90
PP – Sector Outlook
Raffia and BOPP with 50% sector share would remain mainstay
www.ril.com 91
PVC – Sector Outlook
Pipes and fittings with 70% sector share would remain mainstay
– Government focus on Irrigation / Sanitation
www.ril.com 92
Polymer Price Outlook
1600 $/MT
PE PP PVC Long Term Averages
1400
1200
1000
800
600
in ME
cracker at Jamnagar
www.ril.com 94
Polyester
Polyester
www.ril.com 95
Business Environment: Polyester
PTA - PX 83 92 77 107 86
20000
15000
• Short term driver:
10000
Beijing Olympics in
5000
2008 for incremental
0
2005 2006 2007 2008 2009 2010 2015 polyester demand in
China
Asia North America Latin America Europe (Incld Turkey) Africa/M iddle East
Source: PCI 2007
5 Polyester Staple
Acrylic
3
PES filament to overtake PES staple to overtake Polypropylene
cotton by 2015 cotton by 2020
2 Cellulosic
Cotton
1
Wool
0
1980 1985 1990 1995 2000 2005 2010 2015 2020
Source: Tecnon OrbiChem
CAGR 2005-2010
-0.4%
70000
Nylon -0.5%
Acrylic 6%
60000 Cellulose
Cotton 1%
50000
40000
KT
30000 4.2%
PSF
20000 6.5%
PFY
10000
-
Source: PCI Textile industry growth 3%
1100 PSF
700
2008 (P)
2009 (P)
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Cotlook ‘A’
c/lbs 63 58 71 94 86 79 72 59 53 57 42 59 68 52 56 59 74 80 83
12%
Custom duty of polyester products reduced to 5% from 10% (mid year revision to 7.5%)
Major filament capacity (~1.3 MMT) being planned in view of strong domestic demand
Rupee appreciation has hit downstream exporters resulting in slower demand growth
10% capital subsidy on technical textiles & garments m/c under TUFS
www.ril.com 103
Polyester Production: FY 2007-08
Industry RIL
www.ril.com 104
Upstream & downstream squeezing PX
1800 1800
Naptha in PSF PX Delta
Cotton prices
PTA Delta MEG in PSF capping Polyester
1600 PSF Price Cotton Price 1600
1400 1400
1200 1200
MEG prices
Skyrocket on the
1000 back of global 1000
outages
800 800
400 400
Aug-03
Aug-04
Aug-05
Aug-06
Aug-07
Nov-02
Feb-03
May-03
Nov-03
Feb-04
May-04
Nov-04
Feb-05
May-05
Nov-05
Feb-06
May-06
Nov-06
Feb-07
May-07
Nov-07
Feb-08
www.ril.com 105
Domestic Market Outlook : 2008-09
www.ril.com 106
Domestic Fiber Market: Growth outlook
India World
Home
Home
Textiles
Textiles
Automotive
5% 16%
3%
Apparel
41%
Industrial Automotive
2% 20%
Industrial
Apparel
90% 23%
Source: PCI
www.ril.com 108
Innovations
New Products
Recron Polylon
Recron Stretch
Octagonal Black
Deep Dye Low Shrinkage FDY
Carpet fibre
Low Pill Tow
Recrobulk
Short cut fibers for wet laid
application
www.ril.com 109
Growth Strategy
Integrated POY-PTY for new capacity to reduce packing and logistic costs
2006 2007
Sales (KT) 126 138
Marketing
Focus on premium automotive, functional wear, home and technical textiles market
Manufacturing
www.ril.com 111
Recron Malaysia (Hualon): Update
availability - will operate amongst the most complex deep water production
systems globally
www.ril.com 114
Thank
ThankYou
You