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Essar Ports Ltd.Performance UpdateFYE March 2014
Salaya
Paradip I (Dry Bulk)
HaziraINDIA
BAY of BENGAL
INDIAN OCEAN
Paradip II (Coal)
Vadinar
Hinterland for Essar Ports
§ 20 MTPA Dry Bulk Terminal at Salaya
§ 23 MTPA Iron Ore Berths at Vizag§ 20 MTPA General Cargo Terminal at Hazira§ 14 MTPA Coal Terminal at Paradip§ Liquid Storage Terminal (expansion) at
Vadinar
Operational
Under Construction
Under Development
§ 58 MTPA Liquid Terminal at Vadinar§ 30 MTPA Dry Bulk / General Cargo Terminal
at Hazira§ 16 MTPA Dry Bulk Terminal at Paradip
Vizag (Iron Ore)
Current capacity of 104 MMTPA to be scaled up to 181 MMTPA
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Essar Ports: Overview
§ 3 stand-alone ports on the West Coast and 3 terminals on the East Coast of India§ Presence in strategic locations of east and west coast, with bulk of the investments in the key state of Gujarat§ High visibility on revenue with long term Take-or-Pay contracts § High operating margins at operating ports. Further scalability possible at most locations
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Performance Summary
FY14 Updates
ü Results delivered in line with growth plans
ü Financial Results
ü Essar Ports board recommends a dividend of 5 % (Rs. 0.50 per share) for FY14
ü Revenue for the year increased by 13% to Rs. 1637.4 crore from Rs. 1448.6 crore in FY13
ü EBITDA for the year increased by 14% to Rs. 1327.1 crore from Rs. 1167.9 crore in FY13
ü Net Profit for the year increased by 16% to Rs. 383.7 crore from Rs. 331.6 crore in FY13
ü Approvals
ü Stage 1 Forest Clearance (FCA) for Salaya port has been received. Compensatory afforestation land has been finalized and
agreement has been executed. Final FCA clearance is expected soon
ü Received final environment clearance for Hazira expansion
ü Court cases by labour unions against award of concession of Vizag iron ore terminals have been dismissed by honourable High
Court of Andhra Pradesh
ü Paradip coal terminal construction expected to start soon as Supreme Court dismissed all the petitions filed by port users
occupying the land during December 2013. Paradip Port Trust has initiated action to vacate the land earmarked for the terminal.
ü Third Party Cargo set to increase starting FY2015
ü Upgradation of Vizag terminal simultaneously with operations. Terminal will contribute to third party revenues of EPL from Q2
FY2015
ü Increasing Third Party cargo share upon addition of New projects : Salaya and Paradip Coal
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Key HighlightsCargo Handled
(Figures in Rs Cr)
Note: Company has earned trade revenues and incurred expenses of Rs 577.5 cr each (Profit neutral) during FY14 on account of fulfilling export obligations under EPCG.
Ø 52.24 million tonnes of cargo handled during FY14 as against 54.52 million
tonnes of cargo handled during FY13
Ø 13.03 million tonnes of cargo handled during Q4 FY14 as against 14.81
million tonnes of cargo handled during Q4 FY13
Ø Essar Ports board recommends a dividend of 5 % (Rs. 0.50 per share) for
FY14
FY14 FY13 Growth % Q4 FY14 Q4 FY13 Growth %
Revenue (Excluding trade revenues) 1637.4 1448.6 13% 415.5 396.7 5%Trade revenues/expenses for fulfilling export obligations 577.5 0.0 275.5 0.0
Total Revenues 2,214.9 1,448.6 691.1 396.7
EBITDA 1327.1 1167.9 14% 329.6 307.4 7%
PAT 383.7 331.6 16% 90.8 92.1 -1%
EPS (Rs per Share) 8.97 7.80 15% 2.12 2.15 -1%
0
10
20
30
40
50
60
FY13 FY14
39.82 40.91
14.15 10.26
0.55 1.07
Vadinar Hazira Paradip Dry Bulk
52.2454.52
Asset-wise Highlights
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Vadinar
Ø Vadinar terminal handled 40.91 MMT of cargo during FY14 as
against 39.82 MMT during FY13
Ø The total cargo handled during Q4 FY14 was 10.27 MMT as
against 10.54 MMT during Q4 FY13
Ø Terminal has accomplished over 2700 Loss Time Injury Free
Days and handled over 2500 ships safely.
Hazira
Ø Final environment clearance received for expansion project
Ø The total cargo handled during FY14 was 10.26 MMT as against
14.15 MMT during FY13
Ø Traffic increased to 2.63 MMT during Q4 FY14 as against 1.85
MMT during Q3 FY14 due to anchor customer production ramp
up
Ø Cargo expected to grow further during FY15 backed by anchor
customer volumes
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Pradip Dry Bulk
Ø Handled 0.12 MMT cargo during the quarter as against 0.44
MMT during Q4 FY13
Ø The total cargo handled during FY14 was 1.07 MMT as against
0.55 MMT during FY13.
Ø Cargo ramp-up expected to happen soon as anchor customer
throughput increases
Ø Third party cargo tie ups in progress. Third party handling to start
soon
Asset-wise Highlights
Salaya
Ø Expected COD: March 2015
Ø Construction of Jetty completed.
Ø Approach trestle to Jetty completed. Bund work in progress
Ø Stockyard is operational with three stacker cum reclaimers
Ø Loader and 2 unloaders erection is complete
Ø Stage 1 Forest Clearance (FCA) received
Ø 1,710 MW of imported coal based power generating capacity already operational
Vizag – Iron Ore: An existing project, with no gestation period for commencement
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Outer harbour (Phase –I)
Inner harbour (Phase – II)
Total
Berth dimensions 295 mtr. 280 mtr.
Capacity (MMTPA) 16.20 6.80 23.0
Draft 21 m (proposed)16.5 m (current)
14 m (proposed)12 m (current)
Vessels Super capesize(upto 200,000 DWT)
Panamax
Stackyard area (ha) 48.3 7.6 55.97
Project Cost Rs 1153 Crore
Historical Iron Ore Traffic at Vizag
Ø Concession Agreement has been executed on 13th December 2013 at Chennai.
Ø All court cases against award of project by labour unions dismissed
Ø Project will significantly enhance third party mix of the Company and gives strategic presence on the east coast after Paradip.
Ø Significant volumes are for coastal movement and exports picking up will further boost volumes
Project profile
18.1 19.1
16.2
12.3 13.0
FY2010 FY2011 FY2012 FY2013 FY2014
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Strong Cargo Mix
99%
1%
FY13AEssar Group Third Party
Growing 3rd Party Cargo Mix
70%
30%
FY17EEssar Group cargo Third party cargo
89%
11%
FY15EEssar Group cargo Third party cargo
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Diversified cargo split
FY14FY13
Crude (SPM), 16.50
Liquid Product (Jetty), 12.60
Liquid Product (Road/Rail),
4.32
Liquid Intermediate,
6.40
Dry Bulk, 12.97
Breakbulk/Project Cargo, 1.73
FY13 Total Volume 54.52 MMT
Crude (SPM), 17.18
Liquid Product (Jetty), 13.09
Liquid Product (Road/Rail),
4.24
Liquid Intermediate,
6.40
Dry Bulk, 9.98
Breakbulk/Project Cargo, 1.35
FY14 Total Volume 52.24 MMT
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Strong growth in performance
37% CAGR in Net Profit highlighting the continued improvement in the Company’s performance and overall financials
0.0
250.0
500.0
296.6
396.7 415.5
Revenue (Rs Crore)
0.0
150.0
300.0
450.0
243.2307.4
329.6
EBITDA (Rs Crore)
0.0
40.0
80.0
120.0
48.5
92.1 90.8
PAT* (Rs Crore)
0.00
1.00
2.00
3.00
1.18
2.15 2.12
EPS* (Rs per Share)
* Q4 FY12 PAT and EPS figures are before exceptional items
Financial Performance
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Ø Revenue increase on account ofhigher contracted volumes fromanchor customers
Ø Year on year revenue excludingtrade revenues saw a growth of13% to Rs 1637.4 cr and EBITDAsaw a growth of 14% to Rs. 1327.1cr
Ø PAT for FY14 increased by 16% toRs 383.7 cr as against Rs 331.6 crfor the previous year
Ø EPS for FY14 at Rs 8.97 per shareas against EPS of Rs 7.80 for FY13
Highlights
Debt as on 31st March 2014 (Rs Cr)
Operating 4,672
Project 1,164
TOTAL 5,836
(Figures in Rs Crore)
Q4 FY14 Q3 FY14 Q4 FY13 FY14 FY13
Total Income 415.5 406.4 396.7 1637.4 1448.6Trade revenues for fulfilling export obligations 275.5 0.0 0.0 577.5 0.0
Total Expenses 86.0 74.6 89.3 310.3 280.7Trade expenses for fulfilling export obligations 275.5 0.0 0.0 577.5 0.0
EBITDA 329.6 331.7 307.4 1327.1 1167.9
EBITDA Margin 79% 82% 77% 81% 81%
Interest and Finance Expenses 151.6 152.2 145.9 599.1 524.8
Profit Before Depreciation and Tax 178.0 179.6 161.5 728.0 643.1
Depreciation 69.8 69.5 67.5 277.2 244.0
Profit Before Tax 108.1 110.1 94.0 450.8 399.1
Tax 16.4 15.1 1.0 63.4 64.5
Adjustment for Share of Minority Interest -0.9 -1.0 -0.9 -3.7 -3.1
Profit After Tax 90.8 94.0 92.1 383.7 331.6
Basic EPS (Rs) 2.12 2.20 2.15 8.97 7.80
Note: Company has earned trade revenues and incurred expenses of Rs 577.5 cr each (Profit neutral) during FY14 on account of fulfilling export obligations under EPCG.
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Annexures: Terminal Photographs
Vadinar Photographs
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Product Jetties – Draft 20m, 16m
Jetty Area
SBM – Draft 32 m
Jetty With Loading arms in operation
Vadinar Photographs.. contd
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Product and Intermediate Tankage Farm
Rail Gantry
Crude Oil Tankage farm
Road Gantry
Hazira Photographs
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Finished Steel HandlingBulk cargo handling
Paradip Dry Bulk Photographs
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ConveyorShip Loader, Reclaimers
Salaya Photographs
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Unloaders
Loader
Jetty
Stockyard
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Vizag Photographs
Receipt and Wagon Tippling Stockyard - Stacker
Conveyors Ship Loading
Legal Disclaimer
“This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement withrespect to the purchase or sale of any security of Essar Ports Limited (the “Company” or “EPL” or “Essar Ports Limited”)and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
This presentation is not a complete description of the Company. Certain statements in this presentation contain words orphrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties andassumptions that could cause actual results to differ materially from those contemplated by the relevant forward lookingstatement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and therecan be no assurance that future results or events will be consistent with any such opinion, estimate or projection. Theinformation in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete orcondensed and it may not contain all material information concerning the Company. We do not have any obligation to, anddo not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of thispresentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.
All information contained in this presentation has been prepared solely by the Company. No information contained hereinhas been independently verified by anyone else. No representation or warranty (express or implied) of any nature is madenor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of anyinformation, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither theCompany nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on thispresentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced,copied, distributed, shared or disseminated in any other manner.
The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession thispresentation comes should inform them about, and observe, any such restrictions.”
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