market research report :oil and gas market in china 2012

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Oil and Gas Market in China

March 2012

2

SAMPLE

OIL AND GAS MARKET IN CHINA 2012.PPT

Executive Summary

Market

Drivers & Challenges

Competition

Domestic oil demand is expected to reach x mn tonnes growing with a CAGR of y% during 20‐‐ ‐ 20‐‐Domestic gas production reached z bcm growing with a CAGR of a% during 20‐‐ ‐ 20‐‐Oil and Gas accounted for b% of China’s energy consumption mix in 20‐‐

Major Players

Company 1 Company 2 Company 3 Company 4 Company 5 Company 6

Government Initiatives

Chinese 12th Five Year PlanTax and Pricing Reforms

Drivers: Untapped Potential

Rising Population and Urbanization

Growing Automobile Sector

Low Penetration

Power Generation

Growing Petrochemical Industry

Challenges: Foreign Dependence

Reduction in CO2 Emission

Increase in Renewable Energy

Construction and Expansion of LNG TerminalConstruction and Upgrading of Oil RefineriesOverseas InvestmentsReliance on Unconventional Gas

Trends

3

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•Market Overview• Global

• China

•Exports and Imports

•Drivers & Challenges

•Government Initiatives

•Trends

•Competition

•Key Takeaway

4

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Global oil consumption grew z% in 2010, registering an increase of g mn tons from 20‐‐

• Global oil production reached x4 mn tonnes growing with a CAGR of y % during 20‐‐ ‐ 20‐‐

• Global oil consumption reached 4,028 mn tonnes growing with a CAGR of 0.2% during 2007‐10

• Due to economic recovery post recession in 20‐‐ ‐ 20‐‐, global oil consumption surged by z% in 20‐‐over the previous year

• Global oil reserves increased from y1 thousand mn barrels in 20‐‐ to y4 thousand mn barrels in 20‐‐

• Country 4 accounted for b4% of the global oil reserves in 20‐‐, registering a decline of r% percentage points during 20‐‐ ‐20‐‐

Global Oil Market – Overview Global Oil Production

Global Oil Consumption

0

1,000

2,000

3,000

4,000

z%

y%

20‐‐

x4

20‐‐

x3

20‐‐

x2

20‐‐

x1mn tonnes

0

1,000

2,000

3,000

4,000

5,000

mn tonnes q%

p%

20‐‐

y4

20‐‐

y3

20‐‐

y2

20‐‐

y1

Global Oil Reserves

0

500

1,000

1,500

a3% a2% a1%

‘000 mn barrels

20‐‐

z2

b6%b5%

b4%

b3%b2%

b1%

20‐‐

z1

a6% a5%

a4%Country 6

Country 5

Country 4

Country 3

Country 2

Country 1

5

SAMPLE


Global gas production grew by y% in 20‐‐, increasing e bcmfrom 20‐‐

• Global gas production reached x4 bcm growing with a CAGR of z% during 20‐‐ ‐ 20‐‐

• Global gas consumption reached y4 bcm growing with a CAGR of p% during 20‐‐ ‐ 20‐‐

• Country 4 accounted for b4% of the global gas reserves in 20‐‐ registering an increase of t% during 20‐‐ ‐ 20‐‐

• Global gas reserves increased from s1 tcm in 20‐‐ to s2 tcm in 20‐‐

• In 20‐‐, Place 1 and Place 2 registered d% decline in gas reserves from 20‐‐

Global Gas Market – Overview Global Gas Production

Global Gas ConsumptionGlobal Gas Reserves

0

1,000

2,000

3,000

4,000

bcmz%

y%

20‐‐

x4

20‐‐

x3

20‐‐

x2

20‐‐

x1

0

1,000

2,000

3,000

4,000

5,000

20‐‐

y4

20‐‐

y3

20‐‐

y2

20‐‐

y1

bcm q%

p%

0

500

1,000

1,500

tcm

20‐‐

z2

b6%b5%

b4%

b3%b2%

b1%

20‐‐

z1

a6% a5%

a4%

a3% a2% a1%

Country 6

Country 5

Country 4

Country 3

Country 2

Country 1

6

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In 20‐‐, global R/P ratio of oil and gas was x and y respectively

•At the end of 2010, global R/P ratio of oil was x

• In 20‐‐, R/P ratio of oil was the highest for Country 2

at a2

• In 20‐‐, R/P ratio of oil was the lowest for Country 1

and Country 2 at a1 each

Global Oil Reserves Global Oil Reserve to Production Ratio

Global Gas Reserve to Production RatioGlobal Gas Reserves

• At the end of 20‐‐, global R/P ratio of gas was y

• In 20‐‐, R/P ratio of gas was the highest for Country 5

at b5

• In 20‐‐, R/P ratio was lowest for Country 1 at b1

0

50

100

Country 3

a3

Country 2

a2

Country 1

a1

Country 6

a6

Country 5

a5

Country 4

a4

0

20

40

60

80

Country 5

b5

Country 4

b4

Country 3

b3

Country 2

b2

Country 1

b1

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.

7

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China is the world’s second largest consumer of crude oil; oil consumption witnessed a growth of x% during 20‐‐ ‐20‐‐

•Domestic oil demand is expected to reach a3 mn tonnes growing with a CAGR of x1% during 20‐‐ ‐ 20‐‐

•Domestic oil production reached c4 mn tonnes growing with a CAGR of x2% during 20‐‐ ‐ 20—

•Domestic oil consumption reached b4 mn tonnes growing with a CAGR of x3% during 20‐‐ ‐20‐‐

• In 20‐‐ the R/P ratio of oil in China was t implying that if oil production continues at the current rate the reserves would last for only t years

Domestic Oil Market – Overview Domestic Oil Demand

Domestic Oil Consumption

0

200

400

600

mn tonnes x1%

20‐‐e

a3

20‐‐e

a2

20‐‐

a1

Domestic Oil Production

0

100

200

300

400

500

q%x3%

20‐‐

b4

20‐‐

b3

20‐‐

b2

20‐‐

b1

mn tonnes

0

50

100

150

200

250

mn tonnes

20‐‐

c3

20‐‐20‐‐

p%

c2

20‐‐

c1

x2%

c4

8

SAMPLE Development of oil industry in China

Phase I19‐‐ ‐19‐‐

Phase IV20‐‐ ‐ Present

• Point 1

Phase II19‐‐ ‐19‐‐

• Point 2

Phase III20‐‐ ‐ 20‐‐

• Point 3 • Point 4

Event 1 Event 2 Event 3

9

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Demand and consumption of gas in China is higher than production leading to foreign dependence

•Domestic gas production reached a4 bcm growing with a CAGR of x1% during 20‐‐ ‐20‐‐

•Domestic gas consumption reached b4 bcm growing with a CAGR of x3% during 20– ‐ 20‐‐

•Natural gas demand is expected to reach c2 bcm with a CAGR of x5% during 20‐‐ ‐20‐‐• In 20‐‐ the R/P ratio for gas in China was t implying that if gas production continues at the current rate the gas reserves would last for another t years only

Domestic Gas Market – Overview Domestic Gas Demand

Domestic Gas ConsumptionDomestic Gas Production

0

20

40

60

80

100

bcmx2%

x1%

20‐‐

a4

20‐‐

a3

20‐‐

a2

20‐‐

a1

0

20

40

60

80

100

120

20‐‐

b4

20‐‐

b3

20‐‐

b2

20‐‐

b1

bcm x4%x3%

0

50

100

150

bcmx5%

20‐‐e

c2

20‐‐

c1

10

SAMPLE


Major oil fields are concentrated in Eastern China accounting for t1 a and t2 b oil fields

Major Oil Fields in China

• x% of total oil production in China is from a oil fields, remaining y% contributed by the b oil fields

•Majority of the growth in Chinese oil production is expected to be from the Chinese b oil fields

b exploration and production activities has increased over the years particularly in the Bay 1 and the Sea 1 region

x1

x7

x5

x6

x8

x3

x2

x4

b Oil Fields

11

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Three major gas basins contribute x% of the natural gas production in China

Major Gas Basins in China

x1

b Gas Fields

x2

x3

x4

x5

x6

• Basin 1 in the south west, basin 2 and Basin3 in the north west and basin 4 in the north account for x% of the natural gas production in China

• Place 1 is the largest gas producing province in China accounting for z bcf of gas production in 20‐‐

• Place 2 is the second largest gas basin in China accounting for p% of the gas production in 20‐‐

12

SAMPLE


Country 1 is the major oil exporter to China accounting for d1% of the total oil imports

Oil Market – Exports

Oil Market – Imports

0

5,000

10,000

15,000

20,000

20‐‐

a4

20‐‐20‐‐

a3

20‐‐

x%USD mn

a1

a2c3%

c2%

c1%

c6%c5%

c4%

Country 4

Country 3Country 1

Country 2

Country 5

Others

USD mn

200,000

150,000

100,000

50,000

b2

20‐‐

b4

20‐‐

b3

20‐‐

b1

20‐‐

y%

Exports Country Split – 20‐‐

Imports Country Split – 20‐‐

o1%

Others

o5%

o4%

o2%o3%

Region 1

Region 5

Region 4

Region 3

Region 2

d6%d2%

d5%

d1%

d4%d3%

Country 8

Country 7

Country 6

Country 9

Country 10

Others

o9%

o8%o7%o6%

o10%

Others

Region 6

Region 10

Region 7

Region 9

Region 8

13

SAMPLE


China is the world’s second largest importer of crude oil importing x% of its consumption

Oil Market – Exports

Oil Market – Imports

0

5,000

10,000

15,000

20,000

mn tonnes x%

20‐‐

a4

20‐‐

a3

20‐‐

a2

20‐‐

a1

c6%c5%

c4%c3%

c2%

c1%

Others

Country 5

Country 4

Country 3

Country 2

Country 1

20‐‐

b3

20‐‐

b2

20‐‐

b1

mn tonnes

200,000

150,000

100,000

50,000

y%

20‐‐

b4



Others

o5%

o4% o3%o2%o1%

Region 5

Region 4

Region 3

Region 2

Region 1

d4%

d6%

d5%d3%

d2%

d1%

Country 10

Country 9 Others

Country 8

Country 7

Country 6

o8%

o6%o7%

Others

o9%

o10%

Region 8

Region 7

Region 6

Region 9

Region 10

14

SAMPLE


In terms of value, gas market in China witnessed a trade deficit of over USD x mn in 20‐‐

Gas Market – Exports

Gas Market – Imports under HS Codes

0

500

1,000

1,500

20‐‐20‐‐20‐‐

a2

x2%

a4USD mn

x1%

20‐‐

a1

a3

c4%

c6%c5%c3%

c2%

c1%

0

2,000

4,000

6,000

8,000

USD mn

20‐‐20‐‐

x4%

b1

20‐‐

x3%

b4

b3

20‐‐

b2

d3%

d2%

d1%

d7%

d4%

d5%

d6%

d8%

d9%

Country 9

Country 8

Country 7

Country 6

Country 10

Country 11

Country 13

Others

Country 12

Others

Country 2

Country 5

Country 4

Country 3

Country 1



15

SAMPLE


In terms of volume, Chinese gas market witnessed a trade deficit of y mn tons in 20‐‐

Gas Market – Exports

Gas Market – Imports under HS Codes

0

500

1,000

1,500

20‐‐

x2%

20‐‐

a4

20‐‐20‐‐

USD mn

a2

x1%

a1

a3

c6%

c4%c3%

c2%

c1%

c5%

0

2,000

4,000

6,000

8,000

20‐‐

USD mn

20‐‐

b4

b2

x4%

20‐‐

b1

20‐‐

b3

x3%

d8%

d9%

d7%

d6%

d3%

d5%

d4%

d2%

d1%

Others

Country 12

Country 11

Country 13

Country 6

Country 7

Country 10

Country 9

Country 8

Country 4

Country 2

Country 5

Others

Country 3

Country 1



16

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Drivers & Challenges – Summary

Drivers

Untapped Potential

Rising Population and Urbanization


Low Penetration

Power Generation

Growth in Petrochemical Industry

Challenges

Foreign Dependence

Reduction in CO2 Emission

Increase in Renewable Energy

17

SAMPLE


Presence of high amount of untapped oil reserves to act as a major growth driver for the oil market in China

Untapped Potential (1/2) ‐ Oil Reserves Impact

Regional DistributionQuality of ReservesDepth* of Reserves

0

2

4

6

8

10

C

b6b5

A

b2

b1

bn tons

B

b3b4

0

1

2

3

4

5

6

7

8

<2000 2000‐5000

a3a6

a5a2

a1

3500‐4500

a4 a7

>4500

a8

bn tons

• Finding 1

• Finding 2

• Finding 3

• Finding 4

69.60

500

1,000

1,500

2,000

c2

Region 1

c1

Bn tons

Region 2

c7

c8

Region 4

c6c9

Region 3

c5c4

Region 3

c3

In PlaceRecoverable

18

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High untapped recoverable gas reserves in China is a major driver for the growing gas market in China

Untapped Potential (2/2) – Gas Reserves Impact

Regional DistributionQuality of ReservesDepth* of Reserves

69.60

500

1,000

1,500

2,000

c1

bcm

c6

Region 1 Region 4

c9

c8

Region 3

c7

Region 3

c5c4

Region 2

c3c2

In PlaceRecoverable

0

500

1,000

1,500

2,000

2,500

3,000

b2

b1

bcm

B

b4b3

A

• Finding 1

• Finding 2

• Finding 3

• Finding 4

0

1

2

3

4

5

6

7

8

bcm

>4500

a8a7

3500‐4500

a6a5

2000‐5000

a4a3

<2000

a2

a1

19

SAMPLE


Rising population and rapid urbanization to drive the growth of oil and gas industry in China

•Finding 1

•Finding 2 Sub‐ Finding 1

•Finding 3

•Finding 4

Rising Population and Urbanization Impact

Rise in PopulationHousehold Energy Consumption

0

500

1,000

1,500

53%

47%

57%

20‐‐

43%

b1 b2

20‐‐

mn y%

20‐‐e

b4

43%

57%

2‐‐‐e

b3

48%

52%

Rural populationUrban population

0

5

10

15

20

EJ

x%

20‐‐e

a2

20‐‐

a1

20

SAMPLE


Rise in demand for automobiles acts as a major growth driver for the oil and gas market in China

Impact

• Finding 1• Sub‐finding 1

• Finding 2• Sub‐finding 2


Annual Demand – Gasoline and Diesel

0

50

100

150

200

250

300

mn tons

x%

20‐‐e

b2

20‐‐

b1

Automobile Production

Sales Segmentation (20‐‐)

0

5

10

15

20

25

30

20‐‐ 20‐‐e

c2

c5

20‐‐‐

c4

c3

20‐‐20‐‐ 20‐‐e

c6mn units

y%

c1

a1%

a2%

Commercial VehiclesPassenger Vehicles

21

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Relatively low level of oil and gas consumption is expected to provide a huge opportunity for market growth

•Finding 1• Finding 2• Finding 3• Finding 4

Low Penetration Impact

Per Capita Oil Consumption Per Capita Natural Gas Consumption

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Country 4

Country 3

a4

a5

China 20‐‐

a6

a3

a1

a2

Country 2

Country 1

tons

China 20‐‐e

0

500

1,000

1,500

2,000

2,500

b3

cms

China

b2

Country 6 Country 7Country 5

b4

b1

22

SAMPLE


Growing capacity of gas fired power plants is expected to act as a major growth driver for the gas market in China

Thermal Power Generation Impact

Thermal Power Capacity

• Finding 1

• Finding 2

• Finding 3

• Finding 4

0

500

1,000

1,500

2,000

GW

20‐‐e

a2

20‐‐

a1

x%

20‐‐e

a3

Gas Fired Power Plants Installation

0

10

20

30

40

50

60

GW

20‐‐e

b2

20‐‐

b1

y%

23

SAMPLE


Growth in petrochemical industry to raise the crude oil refinery capacity to x1 mn metric tons in 20‐‐

Growth in Petrochemical Industry Impact

Oil Product Demand

0

100

200

300

400

20‐‐

mn tons

x%

a1

20‐‐

a2

•Finding 1•Finding 2•Finding 3•Finding 4

24

SAMPLE


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

Foreign Dependence Impact

Foreign Crude Oil Dependence

0

20

40

60

80

%

20‐‐ 20‐‐

y%

a2

a4

a3

20‐‐ 20‐‐

a1


25

SAMPLE


Reduction in carbon emission under the 12th FYP to emerge as a major challenge to the oil and gas market in China

Reduction in CO2 Emissions Impact

Per Capita CO2 Emission

0

2

4

6

8

tons

20‐‐

a2

19‐‐

a1

p%

20‐‐

q%

0

5

10

15

%

20‐‐e

y%

20‐‐

x%

r%

Rise in Non Fossil Fuel Usage


26

SAMPLE


Growing emphasis on renewable energy utilization to act as a major challenge to the oil and gas market in China

Increase in Renewable Energy Impact

• Finding 1

• Finding 2

Renewable Energy Share

0

5

10

15

20‐‐

ad1

x% ad2%

20‐‐e

0

50

100

150

200

250

300

a1

a2

a4 a6

A

a3

GW

C

a5 a8

B

a7

D

20‐‐e20‐‐c2%c1%

z2

b4%

z1

b3%

0%

b2%b1%

80%

c4%

GW

100%

60%

40%

20%

c3%

20‐‐ 20‐‐e

Renewable Energy Source Split

B

D

C

A

27

SAMPLE

Regulatory body 1

Development of energy regulatory framework in China

Regulatory body 2 Regulatory body 3

• Point 1

• Point 2

• Point 3

• Point 1

• Point 2

• Point 1

• Point 2

28

SAMPLE


Chinese 12th five year plan has outlined several steps to develop the oil and gas industry in China

Initiatives

Target

• Point 1• Point 2

Initiative 1

• Point 1

• Point 2

• Point 3

• Point 4

Initiative 2

• Point 1

• Point 2

• Point 3

12th Five Year Plan‐ Focus on Oil and Gas Market in China

29

SAMPLE


Tax and Pricing Reforms

Acknowledging the need for reforms, China has revised pricing and tax policies of its oil and gas market

KeyReforms

• Key Reform 1

• Key Reform 2

Conclusion 1

30

SAMPLE


Trends ‐ Summary

Construction and Expansion of LNG Terminal

Construction and Upgradingof Oil Refineries

Reliance on Unconventional Gas

Overseas Investments

Trends

31

SAMPLE


Chinese oil and gas players are venturing into construction and expansion of…

•Finding 1

• Finding 2

• Finding 3

Construction and Expansion of LNG Terminal (1/2)

Players invest in LNG terminals to secure unhindered supply of natural

gas

LNG Terminals – Current and Proposed Development Plans

Terminal Name Status/Online Date DeveloperInitial / Expansion Capacity (Mncf/d)

Possible Supplier

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

32

SAMPLE OIL AND GAS MARKET IN CHINA 2012.PPT

…oil and gas terminals with a view to obtain a secure supply of natural gas

Construction and Expansion of LNG Terminal (2/2)

LNG Terminals – Current and Proposed Development Plans

Terminal Name Status/Online Date DeveloperInitial / Expansion Capacity (MMcf/d)

Possible Supplier

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

33

SAMPLE


Following a surge in demand for oil, key players are foraying into the construction and…

Construction and Upgrading of Oil Refineries (1/2)

Players invest in oil refineries to increase

production and earn higher profit

‐

Oil Refinery Projects

Company Location Capacity Planned start‐date Features

‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

• Finding 1

• Finding 2

• Finding 3

34

SAMPLE OIL AND GAS MARKET IN CHINA 2012.PPT

…upgrading of oil refineries to maintain a steady supply of oil

Construction and Upgrading of Oil Refineries (2/2)

‐

‐

‐

‐

‐

‐

‐

‐

‐

Oil Refinery Projects

Company Location Capacity Planned start‐date Features

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

‐ ‐ ‐ ‐

35

SAMPLE


Chinese players are making overseas investments with a view to reduce foreign dependence for oil and gas

Overseas Investments (1/5)

With a view to increase

resource base overseas

investments are on the rise

Point 1

Point 3

Point 2

Point 5

Point 4

Point 6

Point 7

Point 8

Point 9

Point 10

Investment Motivations and Key Initiatives

36

SAMPLE


Mergers & Acquisitions in Chinese Oil and Gas Market

Overseas Investments (2/5)

Source: EIA

Size (USD bn)ShareBuyer/ InvestorTargetDate

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐

37

SAMPLE


Heavy import dependence has led the players to shift their focus on…

Reliance on Unconventional Gas (1/2)

Players are foraying into production and development of unconventional

resources to reduce imports

Unconventional Gas

Type 2 Type 3Type 1

Conclusion 1

• Finding 1• Sub‐Findings

38

SAMPLE


…the development of unconventional sources to meet the growing demand for energy

Reliance on Unconventional Gas (2/2)

CBM Location CBM Production

Shale Gas

Coal Bed Methane

• Finding 1• Finding 2• Finding 3

• Finding 1• Finding 2• Finding 3

Reserves CBM Shale

Total Reserve ‐ ‐

Recoverable Resource ‐ ‐

Proven Reserves ‐ ‐

Non‐ Conventional Gas Reserves

0

1

2

3

4

5

mncf/d

c%

20‐‐e

b3

20‐‐e

b2

20‐‐

b1

0

10

20

30

40

50

60 a1

SouthNorth Northwest

a2

a4

a3

Northeast

mncf/d

39

SAMPLE


-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

-50,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

Net Income

Revenue

m3m4

m1

m2

Domestic Competition – Summary (1/2)

Size of the Bubble represents Market Capitalization in USD mn

Company 3

Company 4Company 2

Company 1

40OIL AND GAS MARKET IN CHINA 2012.PPT

Domestic Competition – Summary (2/2)

Revenue and Profit for Major Domestic Companies

104

106

22,230

10,890

13

131

46

68

0 5,000 10,000 15,000 20,000 25,000

USD

Company 4

Company 3

Company 2

Company 1

Revenue Net Income

SAMPLE

41

SAMPLE


Domestic Company – Company 1

Key People

Products and Services

Company Information Locations – China

Corporate Address‐

Tel No. xxx‐yyy‐zzz

Fax No. xxx‐yyy‐zzz

Website www.xxx.com

Year of Incorporation 20‐‐

Ticker Symbol ‐‐‐ (‐‐‐)

Stock Exchange ‐‐‐ (‐‐‐)

Category Products/Services

Category 1 Product 1, Product 2

Category 2 Product 3, Product 4

Category 3 Product 5, Product 6, Product 7, Product 8

Category 4 Product 9 and Product 10

Name Designation

Person 1 Vice Chairman

Person 2 Chief Finance Officer

Person 3 Senior Vice President


Headquarters

42

SAMPLE


Financial Snapshot Key Ratios

Financial Summary

Domestic Company –Company 1

• The company incurred a net profit of USD x mn in FY 20‐‐, as compared to net profit of USD y mn in FY 20‐‐

• The company reported total Income of USD z mn in FY 20‐‐, registering an increase of q per cent over FY 20‐‐

• The company earned an operating margin of t per cent in FY 20‐‐a decrease of g percentage points over FY 20‐‐

• The company reported debt to equity ratio of r in FY 20‐‐ a decrease of u per cent over FY 20‐‐

Financial Summary

Profit / Loss

Total Income

0

100,000

200,000

300,000

0

500

1,000

1,500

2,000a2

a1

20‐‐20‐‐ 20‐‐20‐‐

Total IncomeUSD mn

a3

ProfitUSD mn

a4

Indicators Value (20/02/2012)Market Capitalization (USD) ‐

Total Enterprise Value (USD) ‐EPS (USD) ‐PE Ratio (Absolute) ‐

Particulars y‐o‐ychange (2010‐09)

2010 2009 2008 2007

Profitability Ratios

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

Cost Ratios ‐ ‐ ‐ ‐ ‐Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐

Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐

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

Current Ratio ‐ ‐ ‐ ‐ ‐

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

Efficiency Ratios ‐ ‐ ‐ ‐ ‐

Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐Asset Turnover ‐ ‐ ‐ ‐ ‐Current Asset Turnover ‐ ‐ ‐ ‐ ‐Working Capital Turnover ‐ ‐ ‐ ‐ ‐Capital Employed Turnover ‐ ‐ ‐ ‐ ‐

Improved Decline

43

SAMPLE


Key Business Segments Key Geographic Segments

Domestic Company –Company 1

Key Recent Developments

Description News

Overview• Company is a petroleum and petrochemical enterprise group functioning as a state authorized investment organization where the state holds the controlling share

New business• In 20‐‐ company has announced plans to increase the country1 crude oil imports from x barrels per day under a term contract

Business highlights• In the first half of 20‐‐ company produced t million barrels of crude oil registering a YoYrise of x %; and produced g billion cubic feet of natural gas registering a YoY rise of y %

0%

50%

100%

a15%

a11%

a7%

a3%

a14%

a10%

a6%

a2%

20‐‐

a13%

a9%

a5

a1%

20‐‐

a16%

a12%

a8%

a4%

20‐‐20‐‐

Chemical Industry

Marketing and Retailing

Refinery

Exploration and Production

0%20‐‐

100%100%

50%

Country1

The company’s geographic reportable segment is

‘Country 1’

44

SAMPLE


Foreign Company – Company 2

Key People

Source: Company Websites; Press Articles; Databases

Products and Services

Company Information Locations – China

Corporate Address ‐

Tel No. xxx‐yyy‐zzz

Fax No. xxx‐yyy‐zzz

Website www.xxx.com

Year of Incorporation 19‐‐

Ticker Symbol ‐‐‐ (NYSE)

Stock Exchange New York Stock Exchange

Category Products/Services

Category 1 Product 1



Name Designation

Person 1 Chairman

Person 2 Chief Financial Officer

Person 3 Chief Administrative Officer


Regional Office

45

SAMPLE


Financial Snapshot Key Ratios

Financial Summary


Financial Summary

Profit / Loss

Total Income

0

10,000

20,000

30,000

0

5,000

10,000

20‐‐20‐‐

a2

a4

20‐‐20‐‐

ProfitUSD mn

Total IncomeUSD mn

a3a1

Indicators Value (21/02/2012)

Market Capitalization (USD) ‐

Total Enterprise Value (USD) ‐EPS (USD) ‐PE Ratio (Absolute) ‐

Particulars y‐o‐ychange (2010‐09)

2010 2009 2008 2007

Profitability Ratios

Operating Margin ‐ ‐ ‐ ‐ ‐Net Margin ‐ ‐ ‐ ‐ ‐Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐Return on Equity ‐ ‐ ‐ ‐ ‐Return on Capital Employed ‐ ‐ ‐ ‐ ‐

Return on Working Capital ‐ ‐ ‐ ‐ ‐

Return on Assets ‐ ‐ ‐ ‐ ‐Return on Fixed Assets ‐ ‐ ‐ ‐ ‐

Cost Ratios ‐ ‐ ‐ ‐ ‐Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐

Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐

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

Current Ratio ‐ ‐ ‐ ‐ ‐Cash Ratio ‐ ‐ ‐ ‐ ‐

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

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

Improved Decline

• The company incurred a net profit of USD x mn in FY 20‐‐, as compared to net profit of USD y mn in FY 20‐‐

• The company reported total Income of USD z mn in FY 20‐‐, registering an increase of q per cent over FY 20‐‐

• The company earned an operating margin of t per cent in FY 20‐‐a decrease of g percentage points over FY 20‐‐

• The company reported debt to equity ratio of r in FY 20‐‐ a decrease of u per cent over FY 20‐‐

46

SAMPLE


Key Business Segments Key Geographic Segments


Key Recent Developments

Description News

Overview• Company is the xth largest energy company in the country 9 based on market capitalization and proven reserves and production of oil and natural gas

New business

• Company is investing in several emerging businesses like development of integrated power generation, new technology projects to support exploration, production, refining and marketing of oil and gas products

• Company 3 signed an agreement with the company to lease oil; and natural gas at Lowry for USD x mn

0%

50%

100% a11%

20‐‐

a12%

a18%

a17%a15% a16%

a8%

a7%a5% a6% a10%

20‐‐

a9% a14%

20‐‐

a2%

a13%

a4%

a3%

a1%

20‐‐

Refining and Marketing

Exploration and Production

Midstream

Emerging Business

Chemicals

0%

50%

100% c2%b1%

c6%

b4%

b3%

20‐‐

b6%b2%c5%

c3%c1%

c4%

b5%

20‐‐

Country 6

Country 5

Country 4

Country 1 Country 3

Country 2

47

SAMPLE


Led by rising investments and infrastructure construction, Oil and gas market in China to witness robust growthChinese energy industry has tremendous growth opportunity as the unexplored reserves of oil and gas available less

than 2000 feet is estimated to be X% and Y% respectively

Huge untapped oil and gas reserves to act as a major growth driver for the oil and gas market in China

Opportunities in the Market Market Size

Government Initiatives

Challenges

Rising population and urbanization coupled with rising automobile demand and low penetration to significantly contribute to the growth of the market

Growing investments in gas fired power plants along with the growing petrochemical industry to lead to rapid market growth

• Foreign Dependence

• Reduction in CO2 Emission

• Increase in Renewable Energy

Measures to boost the Oil and Gas industry has been a major focus of the 12th five year plan in China

Reforms in resource tax by the government benefited both the buyers and producers of the oil and gas marketPricing reforms has also been undertaken by the government to boost the oil and gas market

0

200

400

600

mn tonnes

20‐‐e20‐‐

a2a1

x1%

a3

20‐‐e0

50

100

150

bcm

c1

x5%

20‐‐e

c2

20‐‐

Oil Demand Gas Demand

48OIL AND GAS MARKET IN CHINA 2012.PPT

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