HYUNDAI OILBANK. Hyundai Heavy Industries Group Company

Transcription

1 HYUNDAI OILBANK Hyundai Heavy Industries Group Company

2 At a Glance Fast Facts Establishment November 1964 CEO Refining Capacity Energy is our VALUE Mr. Moon, Jong-Bak 390 MBD Number of Employees 1,775 Domestic Market shares 22.0% (No.3 in Korea) Number of Service Stations 2,026 Major Products Petroleum and Petrochemical products Financial Highlights (USD Millions) Sales 19,100 18,534 17,335 EBIT Total Asset 7,549 7,852 7,312 In 2014, in contrast with other refining companies in Korea, only HDO reports a positive operating income Refining Value Expanding Value Empowering Value Sharing Value The 20 th largest refinery in the world with 390 MBD of refining capacity, soon to be 530 MBD (2016) No.1 HOU ratio in Korea with 36.7% Over 2,000 gas station with 22.0% market share Founded a JV with Cosmo to produce BTX Formed a JV with Shell to produce Lubricant Base Oil Launched Hyundai Chemical, a JV with Lotte, to pursue the condensate refining and MX manufacturing businesses Named One of the Best Employers in Korea by Aon Hewitt Daesan Refinery acclaimed three million man hours no accident in 2014, 3 rd times in total Declared a wage freeze for all employees in 2014, based on our will for co-prosperity 96% of Hyundai s 1,800-plus employees have voluntarily chosen to participate in donating 1% of their payroll Named a social responsible and reliable leader by the 2015 Management Transparency Awards by Korea Employers Federation In February

3 Achievements and Global Presence Brief History Global Footprint Established HyundaI Chemical, a JV with Lotte Chemical 2012 Established HyundaI Shell Base Oil, a JV with Shell Completed construction of #2 BTX Plant, Established HyundaI Oil Terminal 2011 Commenced #2 HOU plant 2010 Became an affiliate of the Hyundai Heavy Industries Group London Dubai Shanghai Hanoi Singapore Established HCP Pertochem, JV with Cosmo Oil 2002 Renamed to Hyundai Oilbank Invested from IPIC Merged Hanwha Energy and Energy Plaza 1998 Constructed a 400 Ktpa BTX plant 1996 Relocated and commenced a 200 KBD facility at Daesan (Dow s Texas facility) Daesan Head Office & Refinery Seoul Office Became a Hyundai Affiliate company 1989 Completed construction of Daesan Plant (60 MBD) Established as Kukdong Oil Industrial Company Domestic Branch 2

4 Stable Governance with Pan-Hyundai Advantage Shareholding Structure Hyundai Families Hyundai Motor Company Hyundai Development 1.4% 2.2% 4.4% Hyundai Steel World No. 1 shipbuilder and ship engine manufacturer 27affiliates World s top five automobile company Produce 8 million automobiles in 10 factories across 9 countries 56 affiliates Korea s No.1 manufacturer of paint and building materials 91.1% Hyundai Heavy Industries Hyundai Merchant Marine Hyundai Department Store Hyundai Development Company Hyundai Marine & Fire Insurance Factory Fueling Lubricant Chemical Engineering and Construction 3

5 Seasoned Management Chief Executive Officer Executive Officers Kim, Byung Sub Senior Executive Vice President Head of Sales and Marketing Previous Positions and Awards Moon, Jong Bak Representative Director, President & CEO Kang, Dal Ho Senior Executive Vice President Head of Safety & Production SEVP & CFO / CSO, Hyundai Oilbank Chang, Ji Hak President & CEO, HCP Hyundai Cosmo Petrochemical President & CEO, HSB Hyundai and Shell Base Oil Company CEO, HHI Hyundai Heavy Industries Holdings Company in China(~2010) Kang, Myoung Sub Executive Vice President Head of Global Business Awarded Best Management in Korea (Hankyung) Executive Vice President Head of Projects and Constructions 4

6 Geographic Advantage Strategically Positioned China Net Importer 638,000 B/D Malaysia Singapore Net Importer 716,000 B/D China Singapore Seoul South Korea Korea, Daesan Japan Net Importer 560,000 B/D Japan Source: BP Statistical Review., Bloomberg. A sole west-coast Korean refiner, close to East coast of China (China is a net importer) Closest to metropolitan Seoul Historically, China policies have restricted exports to ensure domestic supply Japan is a net importer, with oil product demand further compounded by nuclear power shutdowns Australia has been shutting down inland refineries, increasing net imports while Korean refineries meet the strengthened regulations Synergy within the Daesan Complex with scalable site Samsung Total : Purchase Hydrogen, C4, C5, C6 Sell Naphtha, Steam LG : Sells Naphtha and Steam, Purchases Hydrogen Secured future sites LOTTE : Sells Steam, Purchases Hydrogen KNOC : Contingent Storage KCC : Hyundai family. Coating, Specialty chemicals. 5

7 Upgraded Refinery Throughput & Utilization Rate Main Process Overview (Unit: MBD) Process #1 #2 Total 86% 80% 79% 88% 94% 87% 83% Crude Distillation Vacuum Distillation Akylation LBO Hydrocraking HOU Delayed Coking RFCC Aromatics Benzene Para-xylene , (Unit : MBD, KTA) Expansion History Sales Breakdown (2014) (1996) 390 (1999) CDU 530 (2016) (Unit: MBD) 34 (1989) (2013) (2014) HOU (Unit: Ktpa) 1415 (Present) 400 (1998) BTX Bunker C 3% [ Sales by Volume] [ Export Destination ] Diesel 39% Others 12% Naphtha 8% Gasoline 16% Kerosene 1% Jet fuel 21% Others 26% China 23% Japan 13% USA 6% Singapore 22% Oceania 10% 6

8 Quality Brand and Marketing Capability Domestic Market Share Lubricant Business 500,000 Unit: DM 497, % 22.0% 400, , , % 18.5% 200, , ,756 65, (e) 2016(e) July launch Domestic Overseas Major Sponsorship Consumer Loyalty Co-marketing Customer Satisfaction K 리그스폰서조인식 K-LEAGUE title sponsor since consecutive years Membership reaches 12 million and continues to grow Securing customers with information and feedback Co-marketing with Hyundai Motor Group Also implementing co-marketing efforts with other Hyundai affiliates Customer Call Center ranked No.1 in KS-QI 2014 (Korean Service Quality Index) Awarded No.1 of KS-CQI 7

9 Expanding Value - Petrochemical HYUNDAI Chemical HYUNDAI COSMO Petrochemical Condensate Mixed Xylene Business Mixed Xylene BTX Condensate 140KBD MX 1,000 Ktpa Capacity BZ 250 Ktpa PX 1,180 Ktpa USD 6,100 Mil Revenue USD 2,739 Mil 60% Hyundai Chemical Co., Ltd, jointly owned by Hyundai Oilbank and Lotte Chemical of the Republic of Korea began to construct a new Mixed Xylene production plant and supporting facilities at the site of Hyundai Oilbank Daesan refinery. The main objective of Condensate Crude Refining and MX production Project is to produce above 1,000 KMTA of Mixed Xylene and other products. Share-holding Ratio 50% Hyundai Oilbank built and run at Daesan refinery the #2 BTX plant in partnership with Cosmo Oil of Japan. The #2 BTX plant increased our capacity by 800,000 tons of paraxylene and 130,000 tons of benzene, actively targeting growing demand from China, India, and other regional Asian markets. 8

10 Expanding Value - Lubricants HYUNDAI and SHELL Base Oil Lubricants Lube Base Oil Business Lubricant Products GⅡ Base Oil 650Ktpa Capacity 258,000 DM annually* USD 857 Mil Revenue USD 100 Mil 60% Share-holding Ratio 100% Hyundai Oilbank announced in Feb 2012 that it has entered into a contract with Shell to establish a joint venture and construct a lubricant base oil plant. Mechanical completion was finished at the end of April 2014 and commercial operation started from Aug The JV supplies its high-quality products to major Asian countries including China and other regions as to meet the rapidly growing lube base oil demand. Hyundai Oilbank entered the automobile engine oil market by launching XTeer, a new lubricant product, in ,000 barrels of finished products annually are serving demand at home and abroad. This will consist of expanding our distribution network to include over 2,000 gas stations and automobile repair shops nationwide. * Sales Volume 9

11 Expanding Value - Associated businesses HYUNDAI Oil Terminal Carbon Black Oil Storage Business Carbon Black 280,000 KL Capacity 160,000 Ton annually(e) USD 22 Mil Revenue USD 300 Mil(e) 70% We established Hyundai Oil Terminal to pursue the oil storage business more professionally. The terminal has a storage capacity of 280,000 kiloliters and dock facilities capable of handling tankers of up to 50,000 deadweight tons. The terminal securely stored the first arrival of products in December 2013, attracting customers for 100% of its total storage capacity. Share-holding Ratio 60%(e) We are to advance a higher value-added business taking advantage of slurry oil, which is a by-product of our FCC process. To proceed energy sales business(i.e. selling energy to Petchem plants within Daesan complex) by utilizing surplus steam available from carbon black. Aim to complete the plant in Sep, 2016 and to operate commercially in Nov. 10

12 Awards and Recognitions Operational Recognition ISO ISO-9001 ISO ISO-9001 OHSAS OHSAS Certification from KFQ (Korean Foundation for Quality) Certification from KFQ (Korean Foundation for Quality) EMS (Environmental Management System) Certification QMS (Quality Management System) Certification Certification from KFQ (Korean Foundation for Quality) SMS (Safety and Health Management System) KOLAS International Laboratory Qualification is accredited Awards Received Received No.1 of 2015 Management Transparency Awards Received the Presidential award in Korean Safety Management Awards 2014 Received No.1 of Knowledge Management Awards 2014 Received the Minister of Environment award in Global Green Management Excellence Awards

13 Empowering Value Shutdown Days Successful Upgrading 5.68 (Unit: days per 100,000 equivalent distillation capacity) 36.7% 34.6% Awarded one shot startup of RFCC by UOP 22.1% 20.8% * Solomon study (~2012), In-house Data (2013~14) Hyundai GS Caltex S-Oil SK Energy Cooperative Labor Relations The Best Place to Work in 2013 No labor dispute since 1964 No strike declaration by labor union, with agreement to delegate wage increase decisions to the management Hyundai Oilbank was named as one of the 2013 Best Employers in Korea by Aon Hewitt in Feb The results judged that we enjoyed high employee engagement pride, and excellent CEO leadership. 12

14 Sharing Value Hyundai Oilbank 1% Nanum Foundation Supporting Local Communities Since September 2011, our employees have donated 1% of their monthly salaries to realize a warm and sound society by reaching out to our neighbors in need. We were the first large company in Korea whose employees pledged to do so every month In September 2011, we completed Daejuk Park on a 17,400 square meter site, providing community residents with access to cultural and sports activities In May 2014, we completed Hwagok Reservoir Park in Seosan, providing local residents with a place for rest and relaxation Volunteer activities Hiring the Disadvantaged Support and encourage employee volunteer service by making a financial contribution (KRW 10,000 per volunteer hour) to the charities they volunteer at. Our employees are providing over 5,000 hours of community service each year Operate employment programs that offer jobs to the physically disabled to assist with self-sufficiency. Since 2003, we have hired disabled individuals as car wash attendants at our directly run gas stations in cooperation with Korea Employment Agency 13

15 Disclaimer 14

16 Disclaimer Hyundai Oilbank Co., Ltd., a corporation organized and existing under the laws of the Republic of Korea ( Korea ), with its registered head office located at 182, Pyeongsin 2-ro, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea ( HDO ); HDO (among various businesses) owns and operates an existing refinery plant, located at its Daesan industrial complex ( Daesan Complex ) in the Republic of Korea; These materials have been provided to You by HDO in connection with an actual or potential business discussion or engagement and may not be disclosed or referred to (in whole or in part) or used or relied upon for any other purpose other than as specifically agreed by HDO. The information used in preparing these materials was obtained from or through HDO, its representatives or public sources. While HDO has taken reasonable care in preparing these materials, HDO has not independently verified the information contained in these materials. HDO, its affiliates and their respective directors, officers or employees (the Hyundai Heavy Industries ( HHI ) Group ) assume no responsibility for and do not represent or warrant the completeness or accuracy of the information (whether written or oral) including estimates, projections or forecasts (of future financial performance or otherwise) referred to in these materials or that may be supplied in connection with these materials ( Information ). HDO is under no obligation to inform You or anyone about any change (whether or not known to HDO) to the Information. You must make Your own independent judgment with respect to any matter contained in these materials. The HHI Group will not be responsible for any losses or damages which any person suffers or incurs as a result of relying upon or using these materials or as a result of any information being omitted from these materials. These materials do not constitute an offer or commitment to arrange any form of business and do not create any legally binding obligations on the HHI Group. The HHI Group does not owe any fiduciary or other duties to You or any other person and the HHI Group may be involved in other transactions and services with those who may have conflicting interests with You or any other person. If You do not accept any of the conditions above, you must immediately return these materials and any copies of it, otherwise, the retention of these materials by You shall evidence Your acceptance of such conditions. 15