NAYARA ENERGY LIMITED UNLISTED SHARE
About Nayara Energy Limited
Nayara Energy Limited (formerly Essar Oil Limited) is a globally integrated oil refining company that covers the entire hydrocarbon value chain from refining to production and marketing, across segments, including retail. The company has positioned itself to fulfil about 10% of India’s petro products demand. In 2016, Rosneft along with an investment consortium comprising of global commodity trading companies Trafigura & UCP Investment Group acquired Essar Oil Limited.
Nayara Energy Limited owns the Vadinar refinery of Gujarat, which is India’s second-largest single site, a state-of-the-art refinery. It constitutes approximately 8% of India’s refining capacity. The Vadinar refinery is one of the most modern and complex refineries in the world having a Nelson Complexity index of 11.8. The refinery has an annual capacity of 20 million metric tonnes (MMT) or 405,000 barrels per day (BPD). It is capable of processing some of the toughest crudes and yet produces high-quality Euro IV and Euro VI grade products. They are now producing high-quality Bharat Stage (BS-VI) compliant fuels that meet international standards.
The company is known for business across the entire hydrocarbon value chain from refining to retail and is working with vision to deliver crude to chemicals. Nayara Energy Limited has a well-developed Process Safety Management (PSM) system, which covers the monitoring of multiple vital aspects of the Refinery functions, including Chemical Safety Management, Hazard Identification & Risk Analysis, Management of Change, and Asset Reliability.
Nayara Energy Limited is planning to invest Rs. 1.3 Lakh Crore to expand its capacity from 20 million metric tonnes (MMT) per annum by an additional 26 million metric tonnes (MMT) and a 10.75 million metric tonnes per annum (MMTPA) petrochemical complex. The expansion project is estimated to be completed by 2022 to 2024.
INCORPORATION DETAILS
CIN | U11100GJ1989PLC032116 | |||||
Registration Date | 12 September 1989 | |||||
Category / Sub-Category of the Company | Public Limited Company | |||||
Address of the Registered office and contact details |
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Name, Address & contact details of the Registrar & Transfer Agent, if any |
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Principal Business Activities of the Company
Name and Description of main products/services | NIC Code of the Product/ service | % to the total turnover of the company |
Refining and Marketing | 19201 | 100 |
NAYARA ENERGY LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 1,49,05,61,155 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE011A01019 |
PAN No. | AAACE0890P |
Lot Size: | 100 Shares |
Last Traded Price | Rs. 200 |
Market Cap: | Rs. 29811.22 Crore |
PARTICULARS OF SUBSIDIARY COMPANIES
Name of the Company | % of shares held |
Nayara Energy Global Limited (Formerly ‘Essar Oil Trading Mauritius Limited.) | 100% |
Vadinar Oil Terminal Limited | 97.63% |
Coviva Energy Terminals Limited | 100% |
SHAREHOLDING PATTERN
(As on 31-03-2020)
S. No. | Shareholder's Name | No. of Shares | % of total Shares of the company |
1 | Kesani Enterprises Company Limited | 25,65,94,520 | 17.21% |
2 | Rosneft Singapore Pte. Limited (Formerly Petrol Complex Pte Limited) | 73,23,26,446 | 49.13% |
3 | Shares held by Custodian for GDRs & ADRs | 47,57,31,927 | 31.92% |
4 | Others | 2,59,08,262 | 1.74% |
Total | 1,49,05,61,155 | 100 |
BOARD OF DIRECTORS
Charles Anthony Fountain (Executive Chairman)
Jonathan Kollek (Non-Executive Director)
Chin Hwee Tan (Non-Executive Director)
Krzysztof Zielicki (Non-Executive Director)
Victoria Cunningham (Non-Executive Director)
Avril Conroy (Non-Executive Director)
Alexander Romanov (Non-Executive Director)
Deepak Kapoor (Independent Director)
Naina Lal Kidwai (Independent Director)
Alexey Lizunov (Non-Executive Director)
Prasad K Panicker (Director & Head of Refinery)
B Anand (Chief Executive Officer)
Anup Vikal (Chief Financial Officer)
INDUSTRY OUTLOOK
In the past few years, the oil industry had faced several speed-breakers including sanctions and other supply outages. The USA announced sanctions on oil trade against Venezuela after Iran. Sour Crude supplies were further hampered by the issue of contamination of organic chlorides in Urals crude delivered from pipelines into Europe.
The Oil Industry was one of the worst affected sectors amid COVID 19 Pandemic. Oil Companies lost around 40% of demand during the early lockdowns, and globally more than 10% across the year. The industry saw a steep drop in oil prices even before producers have made huge cuts.
Refinery margins have been at the very bottom end of the all-time lows. This was mainly due to lower-than-expected demand growth.
The global oil demand growth realized for 2019 was 1.0 million BPD (barrels per day) as against projections of 1.3 million BPD at the beginning of the year. In the end of FY 2020, the oil markets were impacted by two key events. First, the OPEC+ cooperation for restricting oil production faced a breakdown. Secondly, COVID 19 pandemic, leading to widespread lockdowns and shutdowns globally. This has led to global oil demand falling off the cliff, with estimates of global oil demand loss ranging between 20-30%. The low demand of oil products led to reduced crack margins while the oversupply of crude oil led crude prices to fall by more than 50%. After a difficult 2020, global economic activity is expected to rebound more strongly as the world recovers from COVID 19.
The world’s third-largest oil consumer, India continues to be the engine of world energy demand. The impact of COVID 19 plunged the country’s oil demand by 2.18 mb/d (Millions of Barrels per Day) year over year to 2.58 mb/d in April (the lowest since October 2008).
Asia’s oil demand growth is expected to be the main impetus driving the expansion in global oil consumption and India, along with China, continues to be the largest contributor to this growth. Domestic retail margins on auto fuels continue to remain strong partly offsetting the impact of softer refining margins during the year. This continues to benefit the entire business model of refining and retail.
PROFIT & LOSS STATEMENT OF NAYARA ENERGY LIMITED (In Rs. Lakhs)
PARTICULARS | 2020 | 2019 | 2018 | 2017 |
Revenue from Operations | 99,86,830 | 98,65,940 | 85,52,800 | 7,20,845.7 |
Total Revenue including Other Income | 1,00,54,990 | 1,00,31,320 | 86,69,270 | 7,48,746.2 |
EBIDTA | 6,40,520 | 5,63,090 | 7,98,400 | 1,11,182.0 |
Profit before Exceptional items and Tax | 1,43,210 | 1,23,170 | 2,91,510 | 56,650 |
Exceptional items | -45,440 | -17,730 | 1,84,470 | 52,755.50 |
Profit before discontinued operations and tax | 97,770 | 1,05,440 | 1,07,040 | 3,896.20 |
Profit / (Loss) from discontinued operation | 0 | 0 | -9,230 | -22,085.30 |
Profit / (Loss) before Tax | 97,770 | 1,05,440 | 97,810 | -18,189.10 |
Tax | -1,52,230 | 36,590 | 40,110 | 9,359 |
Net Profit after Tax | 2,50,000 | 68,850 | 57,700 | -27,548.10 |
EPS (In Rs.) | 16.61 | 4.55 | 3.86 | -18.92 |
BALANCE SHEET OF NAYARA ENERGY LIMITED (In Rs. Lakhs)
PARTICULARS | 31ST March 2020 | 31ST March 2019 |
ASSETS | ||
NON-CURRENT ASSETS | ||
Tangible Assets | 44,85,160 | 46,28,220 |
Intangible Assets | 3,85,710 | 2,660 |
Goodwill | 10,81,840 | 10,81,840 |
FINANCIAL ASSETS | ||
Investments | 0 | 0 |
Other financial assets | 17,700 | 56,000 |
Other non-current assets | 27,320 | 32,020 |
Non-current tax assets (net) | 87,460 | 87,130 |
TOTAL NON CURRENT ASSETS | 60,85,190 | 58,87,870 |
CURRENT ASSETS | ||
Inventories | 5,92,810 | 9,45,500 |
FINANCIAL ASSETS | ||
Receivables | 1,27,030 | 3,68,910 |
Cash and Cash equivalents | 4,10,760 | 1,33,420 |
Other financial assets | 3,15,710 | 66,830 |
Other Current Assets | 59,800 | 59,300 |
TOTAL CURRENT ASSETS | 15,06,110 | 15,73,960 |
TOTAL ASSETS | 75,91,300 | 74,61,830 |
EQUITY AND LIABILITIES | ||
Equity share capital | 1,50,720 | 1,50,720 |
Other equity | 17,42,090 | 17,44,610 |
Non-controlling Interests | 28,680 | 26,320 |
TOTAL EQUITY | 19,21,490 | 19,21,650 |
LIABILITIES | ||
NON-CURRENT LIABILITIES | ||
FINANCIAL LIABILITIES | ||
Borrowings | 9,88,000 | 11,82,660 |
Other financial liabilities | 16,00,960 | 7,01,570 |
Deferred tax liabilities (net) | 5,47,390 | 8,07,060 |
Other non-current liabilities | 2,28,850 | 3,58,210 |
TOTAL NON-CURRENT LIABILITIES | 33,65,200 | 30,49,500 |
CURRENT LIABILITIES | ||
FINANCIAL LIABILITIES | ||
Borrowings | 87,730 | 5,74,020 |
Trade payables | 9,64,160 | 9,27,110 |
Other financial liabilities | 9,77,400 | 7,20,200 |
Other current liabilities | 2,60,340 | 2,60,410 |
Provisions | 8,030 | 8,110 |
Current tax liabilities (net) | 6,950 | 830 |
TOTAL CURRENT LIABILITIES | 23,04,610 | 24,90,680 |
TOTAL EQUITY AND LIABILITIES | 75,91,300 | 74,61,830 |
DIVIDEND HISTORY
Particulars | 2020 | 2019 | 2018 |
Dividend (Interim + Final) (In Rs.) | Nil | Nil | Nil |
PERFORMANCE OF THE COMPANY
Vadinar refinery (A subsidiary of Nayara Energy Limited) continued operating beyond its rated capacity. It processed 20.62 MMT (Million Metric Ton) of crude during the year, as against its capacity of 20 MMTPA (Million Metric Ton Per Annum).
The company’s year-over-year growth in Volume for FY 2019-20 was 18% against the industry’s year-over-year volume growth of 1%.
Nayara Energy Limited added 574 new outlets in FY 2019-20.
Revenue from Operations increased by 1.24% to Rs. 99,94,110 lakhs in FY 2020 as compared to Rs. 98,71,290 lakhs in FY 2019. The increase was mainly due to higher operating performance.
Current Price Gross Refinery Margin (CP GRM) was lower at USD 5.88/bbl (Barrel of oil) in FY 2019-20 as against USD 6.97/bbl in FY 2018-19.
EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) increased by 27% to Rs.5,69,740 lakhs in FY 2020 from the Rs. 4,49,770 lakhs in FY 2019.
The company earned a Net profit of Rs. 1,48,510 lakhs in FY 2020 against Rs. 34,420 lakhs in the previous year. In FY 2019-2020, the company has reassessed its tax positions in line with the new tax rate regime, which contributed the most in increasing the Profit After Tax (PAT).
One of its subsidiary companies, Enneagon Limited was liquidated on 14 January 2020.
The company’s EPS has improved consistently both standalone and consolidated-wise. In FY 2020, the standalone EPS jumped by 331.17% to Rs. 9.96 as compared to 2.31 in FY 2019. While Consolidated EPS increased by 265.05% in FY 2020 to 16.61 from 4.55 in FY 2019.
Current liabilities of FY 2020 are exceeding the Current assets of FY 2020. Total current liability stands at Rs. 23,04,610 lakhs against the Total current assets of Rs. 15,06,110 lakhs. As the current ratio is less than 1, the company might face a liquidity crisis in the near term.
Nayara Energy Limited has not given any dividend for the past 3 years.
It can be clearly stated that among the subsidiaries of Nayara Energy Limited, Vadinar Oil Terminal Limited contributes the most for Net Assets and Profit/Loss to the consolidated financial statements of Nayara Energy Limited. In fact, it has contributed 39.80% to the consolidated Profit and Loss Statement.5
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