Presentation on Energy sector explaning the brief on the industry. With reference to Indian oil corporation having the maximum refinaries in India which is 11. A detailed analysis on the sector and the company is being presented

1. ENERGY INDUSTRY

2. OIL & GAS INDUSTRY OVERVIEW
• Oil and Gas provide the world's 7.5 billion people with 56
percent of their daily energy needs.
• India is 2nd largest refiner in Asia.
• Its also is the 4th largest consumer of Energy & importer of
LNG.
• It represent global commerce on a massive scale.
• Large quantities of oil and gas flow daily from "exporting"
regions such as the Middle East, Africa and Latin America to
"importing" regions such as North America, Europe and the Far
East.

3. STREAM IN INDIAN OIL & GAS SECTOR
UPSTREAM
Exploration
& Production
Ongc 60%
MIDSTREM
Storage
&Transportat
ion
Iocl 30%
DOWNSTREAM
Refining ,
Processing &
Marketing

4. M&A IN OIL & GAS SECTOR

5. FDI INVESTMENT
• FDI inflows stood at USD 6,756.30 billion ( 2.08% of total FDIs)
till 2017
• During the period 2011-2017 the FDI grew at CAGR 16.06%
2011 2012 2013 2014 2015 2016 2017
3.2 3.3
5.4 5.5
6.6 6.67 6.76
FDI INFLOWS INTO PETROLEUM AND
NATURAL GAS (USD BILLION)

6. PORTER’S FIVE FORCES
THREATS OF SUBSTITUTE
LOW: Threat is low as other sources of
energy like solar, wind, coal and hydro
electric power are less developed.
Pressure from alternative sources might
rise in future.
BARGAINING POWER OF BUYERS
LOW: Customers have low/non existence
bargaining power
Customer are price taker not price maker
THREATS OF NEW ENTRANTS
LOW: Threat to new entrants continues to
be low due to the capital intensive nature
of the industry and economies of scale
BARGAINING POWER OF SUPPLIERS
MEDIUM: Bargaining power is
medium as despite few players
operate government at times delays
subsidy payment to oil companies
thereby increasing losses.
Competitive Rivalry
LOW: Competitive rivalry is
low as just one or two players
operate in upstream,
midstream & Downstream

7. OIL CONSUMPTION & PRODUCTION
3.27 3.43 3.69 3.78 3.79 4.05 4.27
0.67 0.75 0.76 0.76 0.75 0.74 0.72
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016 2017
OIL PRODUCTION & IMPORTS IN %
Imports Production
0.67
0.8
0.76 0.76 0.76
0.8 0.81
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2011 2012 2013 2014 2015 2016 2017
Oil Consumption in %

8. CRUDE PIPELINE NETWORK
• In February 2018 India had a network of 10,293 km of crude
pipeline having capacity of 139.2 mmtpa.
• In terms of capacity ONGC leads pack with 42.03% followed by
IOC 34.91%
51%
12%
12%
25%
SHARES IN CRUDE PIPELINE BY LENGTH
IOC OIL ONGC OTHERS
42%
35%
6%
17%
SHARES IN CRUDE PIPELINE
NETWORK BY CAPACITY
ONGC IOC OIL OTHERS

9. CRUDE REFINERY PIPELINE NETWORK & MARKET
SHARE
47.86%
20.29%
11.73%
3.94%
16.18%
Shares in product pipeline
network by length (out of
16,611km)
IOC HPCL BPCL OIL OTHERS
IOC, 38%
ONGC, 23%
GAIL, 20%
PETRONET LNG,
12%
GUJARAT GAS,
7%
MARKET SHARE OF OIL & GAS
COMPANY IOC ONGC GAIL PETRONET LNG GUJARAT GAS

11. MAJOR PLAYERS
Company Ownership % in
2017
Turnover ($
billion)
ONGC
60.07 11.99
IOC
57.34 56.29
GAIL
54.97 7.68
PETRONET LNG
34.56 5.28
GUJARAT GAS
40.5 9.35
RELIANCE Public Listed 48.46

12. COMPANY MARKET CAP LAST PRICE PE RATIO EPS LTPT
ONGC 2,31,896.56 180.05 12.91 13.95 266.31
IOC 1,58,205.38 161.15 4.00 40.31 769.44
GAIL 72,861.34 323.7 15.64 20.7 395.12
PETRONET LNG 33,907.50 225.9 8.17 27.66 527.98
GUJARAT GAS 1,20,112.36 872.42 54.73 15.94 304.27
TOTAL PE 95.44
AVERAGE PE 19.09

14. I Interact with customer regularly
N Needs identity precise needs of
customer
D Delight customers every time
I Innovate services for customer
excellence
A Accurate Quantity to be provided
N Never argue with customer
O Offer every services available
I Invite customer to visit again
L Long lasting impression

15. OVERVIEW
• Established on 30th June 1959, as Indian Oil Company Ltd. &
renamed as Indian Oil Corporation Ltd. on 1st September 1964.
• 18th largest petroleum company in the world.
• Indian Oil is the highest ranked Indian company in the latest
Fortune ‘Global 500’
• It operates 11 out of 22 refineries in India with capacity of
1.30mbpd
• Its crude oil network is around 11,081km.
• Registered in Nifty 50 stock index National Stock Exchange
from 31st March 2017.
• Globalised itself in Srilanka, West Asia, Mauritius.

16. MISSION & VISSION
• To achieve international standards of excellence through value
of products and services, and cost reduction.
• A major diversified, trans-national, integrated energy company,
with national leadership and a strong environment conscience,
playing a national role in oil security& public distribution.

17. SHAREHOLDING PATTERN
56.9826.43
4.12
0.09
6.16
6.11 0.11
Percentage
Promoters Public Mutual Fund Financial Institution
Foreign Insventors Insurance Company Government

18. SALES & PROFIT MARGIN
%

19. EPS & DPS

20. DEBT EQUITY RATIO
1.28
1.22
0.73
0.48 0.51
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1 2 3 4 5
DEBT EQUITY (%)

21. GROSS REFINERY MARGIN
4.2
0.3
5.1
6.8
6 6.3
2014 2015 2016 2017 2018 2019
GRM %

22. SWOT ANALYSIS
STRENGTH
• Very strong distribution network
• Extensive joint venture agreement
• Entered overseas market such as Srilanka,
Maldives, Oman
• Acquired equity stake in CPCL & BRPL in 2001
became subsidiary of IOC.
WEAKNESS
• Petrochemicals product development
technology.
• Technology drawback as compared to some
major foreign players
• Size of organisation is to big to manage all
efficiency.
OPPORTUNITY
• Extention opportunity and new products
introduction.
• Makes buying process easy for customer.
• Great scope for exploration.
THREAT
• Foreign players with advanced technologies.
• In future market will welcome more private
players.
• Crude oil supply cannot fix its price.

23. TECHNICAL CHART
ri
MARCH APRIL
5 189.63 2 170.45
6 189.7 3 174.45
7 191.05 4 171.75
8 191.57 5 173.55
9 192.75 6 174.25
12 200.33 9 179.82
13 203.93 10 179.8
14 197.53 11 167.35
15 192.05 12 168.25
16 184.75 13 165.35
19 177.9 16 165
20 173.85 17 167.2
21 172.45 18 164.95
22 170.1 19 157.95
23 168.85 20 160.1
26 167.2 23 161.7
27 174.85 24 163.05
28 176.6 25 160.6
29 176.5 26 161.15
30 176.6 27 162.58

24. SOME RECENT NEWS
• IOC Q4 profit doubles to Rs 7,883 cr; approves bonus issue
1:1.
• Indian Oil Corp acquires Shell's 17% Oman oilfield
• Indian Oil Q4 PAT seen up 108.5% YoY to Rs. 7,758.1 cr
• Net Sales are expected to increase by 27.5 percent Y-o-Y (up
15.6 percent Q-o-Q) to Rs. 1,27,913.9 crore.
• The gross refining margin (GRM) for Q4 FY2016-17 was US$
8.95 per bbl as compared to US$ 2.99 per bl in Q4 FY2015-16.
• Partners with Indian Air Force in fueling the biggest airforce
exercise ‘Gagan Shakti’

25. FUTURE PERFORMANCE
• IOC & Bharat Petroleum plans to spend $20 billion on refinery
expansions by 2020
• It plans to have a longest LPG pipeline of 1987km, ranging
from Gujarat to Gorakhpur .
• India targets US $ billion worth investment in gas by 2022, by
adding 228 cities for gas distribution networks