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2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited

Reliance Industries Limited · Oct 13, 2014 · 72 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 1
    2Q FY 2014-15 Financial Results 13 October 2014
  2. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 2
    Financial Results 3 www.ril.com
  3. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 3
    Consolidated Financial Results : 1H FY15 % Change (in Crore) 1H FY15 1H FY14 Y-o-Y T urnover 221,301 219,054 1.0% Segment EBIT 14,310 12,148 17.8% Net Profit 11,929 11,110 7.4% Robust growth in operating profit led by…
  4. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 4
    Consolidated Financial Results : 2Q FY15 % Change % Change 1Q FY15 (in Crore) 2Q FY15 Y-o-Y Q-o-Q 107,905 T urnover 113,396 -4.3% 5.1% 6,916 Segment EBIT 7,394 9.2% 6.9% 5,957 Net Profit 5,972 1.7% 0.3% Y-o-Y decline in…
  5. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 5
    Operational Highlights 2Q FY15 Refining Crude throughput of 17.3 MMT, operating rate of 112%. GRM at 8.3/bbl as compared to 7.7/bbl last year ( 8.7/bbl in 1Q FY15) GRM marginally lower on Q-o-Q; lower product cracks offset by crude…
  6. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 6
    Consolidated Segment Revenue : 2Q FY15 % Change % Change 1Q FY15 (in Crore) 2Q FY15 Y-o-Y Q-o-Q 98,081 Refining 103,590 -5.9% 5.6% 25,398 Petrochemicals 26,651 -1.8% 4.9% 3,178 Oil & Gas 3,002 11.9% -5.5% 3,999 Organised…
  7. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 7
    Consolidated Segment EBIT : 2Q FY15 % Change % Change 1Q FY15 (in Crore) 2Q FY15 Y-o-Y Q-o-Q 3,814 Refining 3,844 19% 1% 1,863 Petrochemicals 2,361 -1% 27% 1,042 Oil & Gas 818 -14% -21% 81 Organised Retail 99 41% 22% 116…
  8. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 8
    Refining & Marketing 9 www.ril.com
  9. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 9
    Business Environment Uneven and weak global recovery continues Oil Prices (/bbl) Brent Avg. 2QFY15: 101.8/Bbl US indicators continue to remain positive 120 1QFY15: 109.6/Bbl 110 Economies in EU struggling with stagnation 100…
  10. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 10
    Global Refining Margins 20 Global Refinery Margins GRMs recovered in USGC and NWE but fell in 15 Singapore on Q-o-Q basis (/bbl) US refiners continue to witness high operating rates 10 Rising shale oil supply 5 Low cost of…
  11. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 11
    Light Distillates Cracks Source : Platts Source : Platts Naphtha cracks lost steam Weak gasoline cracks pulled Singapore margins Asia Weak demand from petchem due to LPG down substitution and ample supplies Asia Gasoline demand…
  12. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 12
    Middle Distillates Cracks 2QFY15 Source : Platts Source : Platts Weak gasoil cracks in US & Asia Jet-kero cracks supported margins in all regions Asia Weak regional demand amid ample supplies Asia Improved Asia-Pacific passenger…
  13. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 13
    Fuel Oil Cracks (/bbl) FO Cracks 0 Asian FO cracks trended higher supporting -4 regional margins, but are still in the -8 to -10 /bbl range -8 Improved buying due to low absolute -12 prices along with falling crude prices…
  14. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 14
    Performance Highlights Crude processing of 17.3 MMT in 2Q FY15 Operating rate at 112% GRM : 8.3/bbl ( 8.7/bbl in 1Q FY15) Continuous emphasis on advantaged feedstock acquisition 2 new crudes processed during the quarter Focus on…
  15. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 15
    Business Performance 2Q FY15 6 Premium (RIL vs. Singapore) Brent-Dubai AL-AH Strong performance despite weak regional 5 4.9 margin environment 4.8 4 4.1 Crude processing of 17.3 MMT, up 3.6% 3.8 3.5 (/bbl) 3 3.5 Q-o-Q;…
  16. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 16
    Product Placement India Domestic Demand (KT) % Change Refinery Sales (KT) 2Q 1Q % 2Q % Product 2Q FY14 1Q FY15 2Q FY15 2Q - 2Q 2Q vs 1Q (Unit in KT) FY15 FY15 Change FY14 Change MS 4121 4796 4578 11.1 (4.5) PSU Sales 1,955 1,843 6%…
  17. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 17
    Petcoke Gasification Project Gasifier Reactor erection in Progress Significant progress made on engineering work, on the verge of completion Ordering of almost all equipment achieved Construction work in full swing at the…
  18. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 18
    R&M Business Outlook Global macro-economy remains sluggish except in US IMF trimmed global growth forecast to 3.3 % in 2014 (from 3.4%) and 3.8 % (from 4.0%) for 2015 Global oil demand set to grow at 1.3% p.a. in 2015 Asia along…
  19. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 19
    Petrochemicals 20 www.ril.com
  20. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 20
    Business Environment Naphtha declined on the back of weakening Ethylene spread close to all-time high of more than crude oil price 600/ MT Large planned and unplanned outages kept Polymer prices remained firm on Q-o-Q basis ethylene…
  21. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 21
    Global Ethylene Operating Rates US: 91.2 % SEA: 89.6 % WE: 89.0 % US operating rates declined sharply to 91% due to scheduled and unscheduled shutdowns SE Asia operating rates at 90% - marginally higher on Q-o-Q basis taking…
  22. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 22
    Price Movement % Change % Change /MT 2Q FY14 1Q FY15 2Q FY15 Q-o-Q Y-o-Y Oil - Dubai (/bbl) 106 106 101 -4.7% -4.7% Naphtha 904 946 899 -5.0% -0.6% Ethylene 1325 1450 1484 2.3% 12.0% Propylene 1337 1309 1282 -2.1% -4.1% EDC 359…
  23. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 23
    Polymer Delta Scenario PP-Propylene 5 Year Avg. HDPE-Naphtha 5 Year Avg. 300 700 677 258 643 245 609 250 232 600 568 570 200 500 151 400 /MT /MT 150 133 300 100 200 50 100 0 0 2Q FY14 1Q FY15 2Q FY15 1H FY14 1H FY15…
  24. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 24
    India Polymer Demand: 1H FY15 Domestic demand up 5% India Demand (1H FY15 vs. 1H FY14) End use demand across all majority sectors remained 6% 6% 5% 5% healthy during the first half 4% 4% RIL Polymer production was marginally…
  25. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 25
    New PP Application: Composite for Truck Battery Cover OEMs in auto sector are constantly upgrading their technology and focusing on parts with lower weight and improved performance at lower cost Battery Cover used to be in metal…
  26. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 26
    New initiatives - Ethane Imports from USA Providing feedstock flexibility and long-term supply security to existing crackers RILs crackers to receive ethane imported from the US Long term feedstock competitiveness. Exploring…
  27. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 27
    ROGC (Refinery off-gas Cracker) Feedstock from Refinery ROGC at Jamnagar Downstream Capacity Refinery off-gases from Ethylene 1.4 MMTPA LLDPE 550 KTPA primary and secondary units Propylene150 KTPA LDPE 400 KTPA MEG 730 KTPA PP 156…
  28. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 28
    ROGC Furnace 29 www.ril.com
  29. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 29
    PX 4 Equipment 30 www.ril.com
  30. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 30
    Outlook Global operating rates expected to remain firm SE Asia operating rates to firm up to over 89% in the near term SE Asia polymer demand growth estimated at 5.5% in 2014; global growth 4.7% Demand growth in India likely to…
  31. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 31
    Elastomers 32 www.ril.com
  32. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 32
    Butadiene Butadiene prices remained low at 1300 Butadiene-LPG 5 Year Avg. 1500 /MT 1200 New capacities coming online 900 613 592 /MT 588 Lackluster demand from synthetic rubber 600 420 517 and ABS sectors in Asia…
  33. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 33
    Polybutadiene Rubber (PBR) RIL stabilized operations of its new swing PBR-Butadiene 5 Year Avg. 1000 40 KTPA PBR plant at Hazira 800 665 Total capacity now at 114 KTPA 600 590 560 575 /MT 480 400 Product from new plant…
  34. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 34
    Polyester & Fibre Intermediates 35 www.ril.com
  35. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 35
    Business Environment Fibre Intermediates Polyester High volatility across feedstock and intermediates Feedstock volatility affected market sentiments prices Margins remained stable Q-o-Q, higher Y-o-Y Weak naphtha prices provide…
  36. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 36
    Domestic Polyester Demand Demand growth led by PET and FDY 1H FY15 vs. 1H FY14 Demand Growth (%) Spinners inability to pass on costs impacted 8% PSF demand 6% 6% Cheaper yarn imports impacting demand growth for PSF 4% 3% 3%…
  37. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 37
    Price Movement % Change % Change /MT 2Q FY14 1Q FY15 2Q FY15 Q-o-Q Y-o-Y Oil - Dubai (/bbl) 106 106 101 -4.7% -4.7% Naphtha 904 946 899 -5.0% -0.6% PX 1462 1264 1350 6.8% -7.7% Benzene 1256 1292 1305 1.0% 3.9% LAB 1834 1778 1779…
  38. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 38
    Polyester Delta Scenario POY-PTA-MEG 5 Year Avg. PSF-PTA-MEG 5 Year Avg. 400 250 352 358 355 332 313 200 300 183 177 180 164 146 150 /MT /MT 200 100 100 50 0 0 2Q FY14 1Q FY15 2Q FY15 1H FY14 1H FY15 2Q FY14 1Q…
  39. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 39
    Fibre Intermediates Delta Scenario PTA-PX 5 Year Avg. PTA margins were stable in 2Q 200 Formula based pricing partially adopted 150 142 137 stemming losses, producers 116 112 109 /MT 100 continued to curtail operations 50…
  40. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 40
    Aromatics Delta Scenario PX-Naphtha 5 Year Avg. Benzene-Naphtha 5 Year Avg. 600 542 556 500 437 388 382 400 364 336 341 400 375 313 300 /MT /MT 200 200 100 0 0 2Q FY14 1Q FY15 2Q FY15 1H FY14 1H FY15 2Q FY14 1Q FY15…
  41. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 41
    RIL Operational Highlights Production (KT) 1H FY14 1H FY15 Production (KT) 1H FY14 1H FY15 PX 963 1,046 POY 326 435 PTA 1,016 1,021 PSF 318 308 MEG 335 323 PET 172 200 TOTAL 2,314 2,391 TOTAL 816 943 Polyester production…
  42. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 42
    New Product Developments Apparel fibre and yarns Recron Sparkle For rugs, fancy yarn and hand knitting Recron GreenGold For sustainable apparel & denim Recron EcoD Dope dyed PSF for apparel & home textiles Recron Certified…
  43. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 43
    Business Outlook Possible China slowdown is a concern for overall textile growth Polyester facilitates better inventory management, thus would continue to be preferred over cotton PX prices settled for the first time since Jan…
  44. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 44
    Oil and Gas Exploration and Production 45 www.ril.com
  45. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 45
    Business Environment LNG markets to stay tighter for longer Incremental reserves development Asian LNG markets growing at 5% p.a. at various gas prices (tcf) Japan nuclear restart limited; Uncertainties over Chinas shale gas…
  46. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 46
    Domestic E&P Production Update 2Q FY 15 1H FY15 1H FY14 % Chg. Panna-Mukta 1.8 Oil (MMBBL) 3.8 3.6 6% 16.5 Gas (BC F) 34.7 33.8 3% T apti 0.1 Oil (MMBBL) 0.1 0.1 -15% 3.9 Gas (BC F) 8.5 14.9 -43% KG-D6 0.5 Oil (MMBBL) 1.0 1.0…
  47. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 47
    KG-D6 Block Project Update Onshore Terminal Booster Compressor (OTBC): OTBC : AIR COOLER , COMPRESSOR STACK Compressors and Gas Turbine package installed on foundation. Construction activities underway Working towards commissioning…
  48. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 48
    KG-D6 Block Update on D55 Discovery D55 discovery made in May13 in central segment Appraisal period available up to May16 Successful appraisal of North segment by well MJ-A1 Appraisal well MJ-A2 in East segment did not…
  49. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 49
    Other Updates Panna-Mukta and Tapti Work-overs planned in Panna-Mukta fields to arrest decline MB Development - rig contract in place, drilling to commence during 2015, EPIC execution underway first oil expected by 1Q FY16…
  50. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 50
    Coal Bed Methane Development Update Phase 1 development on track - more than 60% of project activity completed First gas by 2H 2015 Land Acquisition Drilling and Completion Surface facilities and Civil Construction Land…
  51. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 51
    Coal Bed Methane (CBM) Pipeline Project Laying of 312 KMs natural gas pipeline from Shahdol in MP to Phulpur in UP to transport gas from CBM blocks FEED, detailed engineering and ordering for long lead items completed 100 %…
  52. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 52
    Shale Gas Business 53 www.ril.com
  53. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 53
    Price Environment Q-o-Q softening of prices and high differentials - a key challenge US Natural Gas Inventory Levels (Bcf) HH gas averaged at 4.1/MMBTU in 2Q vs. 4.7/MMBTU in 1Q US dry gas production at a record high of 69.6 BCFD in…
  54. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 54
    Business Performance Highlights 2Q FY15 1Q FY15 2Q FY14 % Chg. from 1H FY15 1H FY14 % Chg. from 2Q FY14 1HFY14 Production (BCFe) 49.8 48.6 36.5 36% 98.4 74.4 32% Revenues ( MM) 244 270 193 26% 514 408 26% EBITDA ( MM) 202 201 127…
  55. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 55
    Business Growth Trends Net Sales Volumes Total Wells Drilled and Put on (Reliance Share) Production 50.0 1000 Wells Drilled Wells put on Production 919 NGLs Condensate Gas 42.9 873 45.0 41.4 900 38.0 815 RIL Share of Volumes…
  56. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 56
    Shale Gas JVs: Development Progress Overview Particulars Pioneer JV Carrizo JV Chevron JV TOTAL Average Rigs in operation 9 - 2 11 Wells Drilled in 2Q FY15 30 - 16 46 Wells put online in 2Q FY15 35 2 20 57 Total Wells Drilled…
  57. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 57
    Reliance Retail 58 www.ril.com
  58. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 58
    Macro Environment GDP Growth (YoY) CPI 10% Food Inflation 9.2% 9% 10% 11% 8% 5% 7% 5% Jan-14 Jun-14 Oct-13 Feb-14 Nov-13 Dec-13 Apr-14 Aug-14 Jul-13 Jul-14 Aug-13 Sep-13 Mar-14 May-14…
  59. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 59
    2Q FY15 Key Highlights Turnover for 2Q FY15 at 4,149 crore, up 20% Y-o-Y LFL growth of up to 21% across formats Record quarterly PBDIT of 186 crore, up 96% Y-o-Y PBDIT at 4.5% of sales compared to 2.7% in the same period last…
  60. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 60
    2Q FY15 Key Highlights Successful Independence Day sales event, with all formats exceeding targets Opened first set of Payless Shoesource stores in the country Payless is the largest specialty family footwear retailer in the Western…
  61. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 61
    2Q FY15 Turnover & Mix 2Q FY15 turnover at 4,149 crore Turnover ( crore) 8,130 Growth of 20% Y-o-Y 6,930 PBDIT of 186 crore 17% 4,149 Growth of 96% Y-o-Y 3,456 20% Q2 H1 FY 2013-14 FY 2014-15 Turnover Mix Q2 FY 15…
  62. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 62
    2Q FY15 Turnover Growth Headwinds of persistent inflation and slow Turnover Growth consumption growth 51% 52% Value sector revenue impacted due to Reliance Fresh store network optimization Digital and Fashion & Lifestyle…
  63. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 63
    Pan-India Presence Store Count by Format Sector Jun 30, 2014 Sep 30, 2014 422 Jewellery 54 53 Brands 100 100 624 199 Digital 427 689 Fashion & Lifestyle 540 569 Store Count Value & Others 602 595 761 Total 1,723…
  64. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 64
    Index Business Performance Macro Environment Key Highlights Financial Performance Store Network Sector Updates Value Format Digital Fashion & Lifestyle Brands 65 www.ril.com
  65. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 65
    Value Focusing on increasing store density in core cities for growth and scale efficiency Began augmenting Reliance Fresh portfolio Limited roll-out of Reliance Fresh Direct home delivery of fresh grocery Own brand products…
  66. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 66
    Digital Continuing to rapidly scale up Digital Xpress Mini concept added over 250 stores in the quarter operating 438 stores in 68 cities Deep understanding of consumer needs and strong partnerships with brands Extensive…
  67. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 67
    Fashion & Lifestyle Strengthened own design studio capabilities to enable superior fashion quotient and speed to market Launched own design studio and sampling facility to enable superior fashion quotient and speed to market Own…
  68. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 68
    Fashion & Lifestyle Payless Shoesource Payless Shoesource is the largest footwear retailer in the world with 4,400 stores in 30 countries Stylish products positioned at competitive price points. Primarily mall based stores in the…
  69. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 69
    Brands Continuing growth momentum of the first quarter Second quarter turnover also increased by 50% on Y-o-Y basis Continue leveraging Iconix Lifestyle India brand portfolio Initiated retail of Cannon an American furniture…
  70. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 70
    Summary 71 www.ril.com
  71. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 71
    Summary Robust operating performance reflecting strong integrated energy portfolio of RIL Refining Crude differential offset weakness in product cracks; stable demand outlook Petrochemicals Rebound in polymer and aromatics;…
  72. 2Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 72
    Thank You

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