Market Research Report : Oil and gas market in china 2014 - Sample

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Oil and Gas Market – China September 2014


Executive Summary Market

Drivers & Challenges

Government Initiatives Trends

 Domestic oil demand is expected to reach x Mb/d in 20-- growing with a CAGR of x.y% during 20-- - - Chinese Government is planning to boost the share of natural gas as part of total energy consumption to around x% by the end of 20-- and y% by 20--

Drivers:

Challenges:

 Untapped Potential  Rising Population and Urbanization  Growing Automobile Sector  Low Penetration  Growing Petrochemical Industry

 Foreign Dependence  Reduction in CO2 Emission  Increasing Focus on Renewable Energy

 Chinese 12th Five Year Plan  Tax and Pricing Reforms  Construction and Expansion of LNG Terminal  Construction and Upgrading of Oil Refineries  Overseas Investments  Reliance on Unconventional Gas Major Players

Competition

Company A

Company B

Company C

OIL AND GAS MARKET IN CHINA 2014.PPT

Company D

Company E

2


•Macro Economic Indicators •Market Overview • Global • China

•Exports and Imports •Drivers & Challenges •Government Initiatives •Key Trends •Competitive Landscape •Strategic Recommendation •Appendix OIL AND GAS MARKET IN CHINA 2014.PPT

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SAMPLE

Economic Indicators (2/3) Lending Rate: Annual

2010

A

B

C

D

E

F

G

% Per Annum

E D USD bn

0

Trade Balance: Annual

x

d

a

b

c

C B A

2011

0

y

2010 2011 N.B.: 2009 2012-13 encompasses figure for Apr – Nov 2012

2012

FDI: Net Inflow 2012

z USD bn CC

2013

bb

m BB

cc

dd

aa

AA Commercial Bank Rates: Key Lending Rates as Prescribed by RBI (All Commercial Banks including SBI) - Minimum Rate General

0

2009

OIL AND GAS MARKET IN CHINA 2014.PPT

2010

2011

2012

4


•Macro Economic Indicators •Market Overview • Global • China

•Exports and Imports •Drivers & Challenges •Government Initiatives •Key Trends •Competitive Landscape •Strategic Recommendation •Appendix OIL AND GAS MARKET IN CHINA 2014.PPT

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Global oil production grew x% in 2013, registering an increase of aa mn tons from 2010

SAMPLE

Global Oil Market – Overview

Global Oil Demand

• Global oil production reached xx mn tonnes in 2013 growing with a CAGR ofa% during 20-- -13 Quadrillion BTUs

 US recorded the largest growth in the world and accounted for around x% of the Non OPEC output in 2013

• Global oil consumption reached aamn tonnes in 2013 growing with a CAGR of x% during 20-- -13  Non OECD countries now account for a% of global oil consumption and they once again accounted for all of the net growth in global consumption

x

A5

A4

e

2025e

2040e

c

b

a

A3 A2

d

A1 0 1990

• Global oil reserves increased from aaa thousand mn barrels in 20-- to bbb thousand mn barrels in 20--

2000

2010

Global Oil Production Mn tonnes A3 A2

x a

b

c

d

e

f

g

h

i

j

k

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

A1 0

OIL AND GAS MARKET IN CHINA 2014.PPT

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In 2013,Middle east region accounted for x% proved oil reserves

SAMPLE

Global Gas Consumption bcm y

AA4 a

b

c

2003

2004

2005

AA3

d

e

f

g

h

i

j

k

2006

2007

2008

2009

2010

2011

2012

2013

AA2 AA1 0

Global Gas – Proved Reserves A2

A3

A4

a2

A5

A6

19--

a1

a3

20--

b1

b2

b3

b4

20--

c1

c2

c3

c4

A7

A8

A9

A10 A11 A12 A13 A14 A15 A16 A17 A18 A19 A20

a4

a5

a6

b5

b6

c5 aa1

aa2

c6 aa3

aa4

aa5

A A

TCM

A1

B C

aa6

Note: TCM: Trillion Cubic Meters

OIL AND GAS MARKET IN CHINA 2014.PPT

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In 2013, global R/P ratio of oil and gas was x and y respectively

SAMPLE

Global Oil Reserves

Global Oil Reserve to Production Ratio

• At the end of 2013, global R/P ratio of oil was x

D

• In 2013, R/P ratio of oil was the highest for Middle East at y

C

• In 2013, R/P ratio of oil was lowest for Asia Pacific at Z

B

A3 A4

A1 A2

A5

A 0 North America

Europe and Middle East Eurasia

Africa

Asia Pacific

Global Gas Reserves

Global Gas Reserve to Production Ratio

• At the end of 2013, global R/P ratio of gas was x

B

• In 2013, R/P ratio of gas was the highest for Africa at y • In 2013, R/P ratio was lowest for North America at z

A

A2

A3

South and Central America

Europe and Eurasia

A4 A5

A1

0 North America

Africa

Asia Pacific

Note: Reserves-to-production (R/P) ratio: If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time (yrs.) that those remaining reserves would last if production were to continue at that rate Proved reserves of natural gas – Generally taken to be those quantities that geological and engineering information indicates with reasonable certainty can be recovered in the future from known reservoirs under existing economic and operating conditions Oil R/P ratio for South and Central America and Gas R?P Ratio for Middle East region is not available OIL AND GAS MARKET IN CHINA 2014.PPT

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China’s oil production and consumption has increased over the past decade at a remarkable rate in China…

SAMPLE

Domestic Oil Market – Overview Domestic Oil Demand • Domestic oil demand is expected to reach a Mb/d in 20-- growing with a CAGR of x% during 2013-18 • In 2013 the R/P ratio of oil in China was y implying that if oil production continues at the current rate the reserves would last for only y years • Domestic oil production reached aa mn tonnes in 2013 growing with a CAGR of a% during 2003-13

Mb/d X

C B

 Domestic oil consumption reached a mn tonnes in 2013 growing with a CAGR of x% during 2003-13

• Country’s national oil companies dominate the oil and gas upstream and downstream sectors  However the Chinese government has granted international oil companies more access to technically challenging onshore and deep water of shore fields

x2

x3

x4

x5

x6

2013

2014e

2015e

2016e

2017e

2018e

A 0

 China’s oil production is expected to increase to about x million bbl/d by the end of 2014

• China’s oil consumption growth has been reduced after a high of m% in 2009

x1

Oil Production from Overseas Acquisition Mn barrels / day Y

x4

A

x3

x2 x1

X

0.0

OIL AND GAS MARKET IN CHINA 2014.PPT

2000

2012

9


Oil demand in China is expected to witness rapid growth in the transportation sector

SAMPLE

Road Transportation

Aviation Sector Mboe/d

Mboe/d

A

6

z

y

4

0.8

B

0.6

y

0.4

x A

0.2

0

0.0 2010

2020e

2035e

Rail and Domestic Navigation

2020e

2035e

Marine Bunkers Mboe/d

Mboe/d

1.0 0.8 0.6 0.4 0.2 0.0

x

2010

Sector – Wise Oil Demand

z

C

z

y

z

2.0 D

1.5

x

1.0 0.5

y x

0.0 2010

2020e

2010

2035e

OIL AND GAS MARKET IN CHINA 2014.PPT

2020e

2035e

10


Gas production and consumption has increased rapidly over the past decade in China and …

SAMPLE

Domestic Gas Market – Overview

Domestic Gas Demand

• Domestic gas production reached aa bcm in 2013 growing at a CAGR of x% during 2003-13  Chinese Government is planning to produce about x Tcf of natural gas by the end of 2015  Gas production is expected to increase by x% from aa bcm in 2013 to bb bcm by the end of 2019  Government is also planning to boost the share of natural gas as part of total energy consumption to around x% by the end of 20--and y% by 20--

bcm x

C B

2013

2014e

2015e

2016e

A 0

• In the long term, China’s gas consumption is expected to touch aa bcm in 20-- and bb bcm by 20- In general, industrial sector consume majority of the gas produced in the country  However, the share of gas consumption in power, residential and transportation sectors have been rising over the past decade

• In 2013 the R/P ratio for gas in China was x implying that if gas production continues at the current rate the gas reserves would last for another x years • Natural gas demand is expected to reach aa bcm with a CAGR of x% during 2013-18

a3

a4

a1

a2

a6

a5

2017e

2018e

Sector – Wise Gas Demand (2012) D

E

A

C

A

D

B

E

C

B

 In the long term, the demand is expected to increase to x Tcf in 20--and y Tcf by 20-OIL AND GAS MARKET IN CHINA 2014.PPT

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Saudi Arabia is a major oil exporter to China accounting for x% of the total oil imports of China

SAMPLE

Oil Market – Exports USD mn

Exports Country Split – 2013

E D

D

A A1

A3

A2

C A

A4

C

Japan

B

USA

A

Malaysia

B

0 2010

2011

2012

2013

Imports Country Split – 2013

Oil Market – Imports USD mn E D C B A 0

Korea

A

B A2

A3

A4

Saudi Arabia E

A1

B

Angola Oman Russian Federation

C D 2010

2011

2012

Others

2013 Note: Oil exports and imports under HS code 2709 OIL AND GAS MARKET IN CHINA 2014.PPT

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Growth in petrochemical industry acts as a major growth driver for the oil and gas market in China

SAMPLE

Growth in Petrochemical Industry

Oil Demand in Petrochemical Sector

• In China, the total core business revenue of petrochemical enterprises grew x% year on year to ~USD a tn in 2013 • In 2013, Chinese petrochemical industry has recorded y% growth in value added output terms

Mboe/d

A

z y

 The value added output from Chinese petrochemical industry accounted for a% of country’s total

Impact

z1

y1 x1

x 0.0

• Growth in the petrochemical industry is expected to drive the oil market in China

2010

2020e

2035e

0

A

2012

a1

2013

b1

2014e

c1

B

C

D

a2

E

F

a3

a4

b2

b3

b4

c2

c3 AA

BB

G a5

DD

EE

c5 FF

OIL AND GAS MARKET IN CHINA 2014.PPT

I a6

b5

c4 CC

H

J a7

b6

A b7

c5

K

B c7

‘000 barrels per day

Oil Demand by Product

C

GG

13


Increase in foreign dependence for oil and gas supply to act as a major challenge to the Chinese oil and gas market Foreign Dependence

Rank – Net Oil Importers (2013) D

mn barrels per day

• XX • XX  XX1

a

Impact

b

C

c

B

d

e

India

South Korea

A 0 United China States

Foreign Natural Gas Dependence

Foreign Crude Oil Dependence % D a2

C

B

a4

X a3

% D C

a1

a1

a2

a3

a4

a5

a6

B

A

A

0

0

2009

Japan

2012

2015e

2030e

Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13

OIL AND GAS MARKET IN CHINA 2014.PPT

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Chinese 1-th five year plan has outlined several steps to develop the oil and gas industry in China

SAMPLE

1-th Five Year Plan – Focus on Oil and Gas Market in China

Target • XX • XX Stabilizing Oil Production and Increasing Gas Production

Initiatives

• XX • XX • XX • XX • XX Construction of Oil and Gas Pipe Networks

• XX • XX • XX • XX • XX

OIL AND GAS MARKET IN CHINA 2014.PPT

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SAMPLE

Mergers & Acquisitions in Chinese Oil and Gas Market Overseas Investments (2/6) Announced Date

Closed Date

Transaction Type

Target

Buyer/Investors

Sellers

Deal Size (USD mn)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

OIL AND GAS MARKET IN CHINA 2014.PPT

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Chinese oil and gas players are venturing into construction and expansion of… Construction and Expansion of LNG Terminal (1/3) • XX

Players invest in LNG terminals to secure unhindered supply of natural gas

• XX • XX • XX • XX LNG Terminals – Current and Proposed Development Plans (1/3) Terminal Name

Status/Online Date

Developer

Initial / Expansion Capacity (Mncf/d)

Possible Supplier

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Note: mncf/d= mn cubic ft per day

OIL AND GAS MARKET IN CHINA 2014.PPT

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SAMPLE

Market Competition – Porter’s Five Forces Analysis Impact X

Threat of New Entrants

• XX

Impact X

Bargaining Power of Suppliers

• XX

Competitive Rivalry

Impact X

• XX

Impact X

Bargaining Power of Buyers

• XX

Threat of Substitutes

Impact X

• XX

OIL AND GAS MARKET IN CHINA 2014.PPT

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Competitive Benchmarking (1/x) Public Trading Comparables (FY 2013)

SAMPLE

Company A

Company B

Company C

Market Capitalization (USD mn)

-

-

-

Share Price (USD)

-

-

-

EV/EBITDA (x)

-

-

-

EV/Revenue (x)

-

-

-

PE Ratio

-

-

-

Note: Top 3 Public companies based on the Market Capitalization; Market Capitalization is as on 25/06/20--, Share Price is as on 25/06/20-- and PE ratio is as on 24/06/20-OIL AND GAS MARKET IN CHINA 2014.PPT

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Competitive Benchmarking (3/5)

SAMPLE

Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (2/3)

Return on Equity

Return on Capital Employed

Current Ratio

% Y

x1

y1

X

x2

y2

x3

y3

Z

x1

Y

x2

x3

Company B

Company C

X 0

0.0 Company A

Company B

Company C

Company A

• XX • XX • XX

• XX • XX

OIL AND GAS MARKET IN CHINA 2014.PPT

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Public: Domestic Company – Company A (1/4)

SAMPLE

Company Information

Locations – China

XX Corporate Address Tel No.

XX

Fax No.

XX

Website

XX

Year of Incorporation

XX

Ticker Symbol

XX

Stock Exchange

XX

Products and Services Category

Products/Services

Oil and Gas

XX

Oil Refining

XX

Petrochemicals

Services

XX

XX

Headquarters

Key People Name

Designation

Chunguang Li

XX

Xinhua Wang

XX

Xiyou Cai

XX

Houliang Dai

XX

OIL AND GAS MARKET IN CHINA 2014.PPT

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Public: Domestic Company – Company A (2/4) Financial Snapshot Total Income USD mn XX

Total Income 11,615

10,887

Key Ratios Profit / Loss 10,924

10,248

XX

15,000 10,000

XX

291,179.1

398,831.9

447,424.0

477,133.8

2011

2012

2013

0

5,000 0

2010

y-o-y change (2013-2012)

2013

2012

2011

2010

Operating Margin

-0.15

3.38%

3.53%

4.19%

6.11%

Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets

0.00

2.29%

2.29%

2.91%

3.74%

0.04 -1.02 -1.18

3.29% 10.64% 12.05%

3.25% 11.66% 13.23%

4.16% 14.43% 15.06%

5.40% 15.91% 17.79%

17.25

-49.17%

-66.42% -103.89%

Profit USD mn

Financial Summary

Particulars Profitability Ratios

-154%

-0.76

7.07%

7.83%

9.21%

11.78%

-1.23

11.77%

13.00%

15.57%

18.61%

0.14

96.61%

96.46%

95.79%

93.87%

0.30

4.35%

4.05%

4.17%

4.43%

-0.03

0.37%

0.40%

0.37%

0.42%

Current Ratio

-8.26%

0.65

0.71

0.77

0.77

Cash Ratio

34.03%

0.16

0.12

0.16

0.19

-11.38%

0.42

0.48

0.38

0.45

-7.99%

0.30

0.32

0.27

0.31

4.96%

9.22

8.78

11.41

14.72

-5.62%

3.47

3.68

3.70

3.03

-5.96%

2.08

2.21

2.19

1.92

1.16%

7.72

7.63

7.31

7.35

-22.86% -5.37%

-14.48 3.25

-18.78 3.44

-24.69 3.59

-25.11 2.92

Cost Ratios

• XXX

Operating costs (% of Sales)

SAMPLE

Administration costs (% of Sales) Interest costs (% of Sales) Liquidity Ratios

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

Financial Summary Indicators Market Capitalization (USD) Total Enterprise Value (USD) EPS (USD) PE Ratio (Absolute)

Value (26/06/20--) XX XX XX XX

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

Improved

OIL AND GAS MARKET IN CHINA 2014.PPT

Decline

22


SAMPLE

Public: Domestic Company – Company A (3/4) Key Business Segments A

C

100%

B

5.6% 29.2%

50% 0%

E

24.0%

2010

D

27.8%

31.3% 9.9%

Key Geographic Segments A

5.6%

26.9%

5.4%

27.0% 5.0%

30.9% 9.7% 26.0%

31.2% 8.7% 27.8%

31.0% 9.0% 28.0%

2011

2012

2013

B

100% 50%

100%

0%

0% 2010

78%

75%

73%

22%

25%

27%

2011

2012

2013

Key Recent Developments Description

News

Overview

• XX

Reserves

• XX

Business highlights

• XX

OIL AND GAS MARKET IN CHINA 2014.PPT

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SAMPLE

Public: Domestic Company – Player A (4/4)

• XX

• XX

S

W

Strength

Weakness

O

T

Opportunity

Threat

• XX

• XX

OIL AND GAS MARKET IN CHINA 2014.PPT

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SAMPLE

Strategic Recommendations AAAAAA

Focus on BB Sector

Focus on AA Sector

• XX

• XX

CC

• XX

OIL AND GAS MARKET IN CHINA 2014.PPT

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Thank you for the attention Oil and Gas Market – China report is a part of Netscribes’ Energy Industry Series. For any queries or customized research requirements, contact us at: Phone: E-Mail:

+91 22 4026 7600 info@netscribes.com

About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. OIL AND GAS MARKET IN CHINA 2014.PPT

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