Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP

Hindustan Oil Exploration — FY2019 Earnings Presentation

34 slides from Hindustan Oil Exploration's earnings presentation, May 14, 2019

  1. Slide 1: Covering letter to stock exchanges

    Hindustan Oil Exploration Company Limited ‘Lakshmi Chambers’, 192, St. Mary’s Road, Alwarpet, Chennai - 600 018. INDIA. : 91 (044) 66229000 ● Fax: 91 (044) 66229011 / 66229012 E-mail: contact@hoec.com ● Website: www.hoec.com CIN: L11100GJ1996PLC029880 May 14, 2019 By Online The Listing Department Th

  2. Slide 2: Investor Presentation 15th May 2019

    INVESTOR PRESENTATION 15TH MAY 2 0 1 9 T R A N S F O R M I N G T H R O U G H T A L E N T AND T E C H N O L OG Y 1 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED

  3. Slide 3: Safe Harbour

    SA F E HARBOUR Investor presentation Q4 2018-19 This presentation and the accompanying slides (the “Presentation”), which have been prepared by HOEC (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti

  4. Slide 4: Contents

    CO N T E N TS Investor presentation Q4 2018-19 1 FY 18-19 Performance Highlights 2 Focus Areas & Priorities 3 Business Outlook 02 | H I N D U S T A N OIL E X P L O R A TI ON C O M P A N Y L I M I T E D

  5. Slide 5: Financial Year Performance Highlights

    F I N A N C I A L Y EA R 2 0 1 8 - 1 9 P E R F O R M A N C E H I G H L I G H TS Investor presentation Q4 2018-19 Gross Production Revenue (BOEPD) (in Cr.) ― Hollong Modular Gas Processing Plant (HMGPP) completed one year of LTI and downtime free operations. Consolidated FY 19 – 9171 FY 19 – 265 prod

  6. Slide 6: Marching ahead consistently on the growth path

    ST RO N G FO U N DAT I O N F O R G ROW T H Investor presentation Q4 2018-19 Marching ahead consistently on the growth path Maintain Strong Financial Foundation Deliver Consistent Production • Continue to maintain debt free balance sheet and low cost • Average Gross Operated Production; FY19 - 9171 b

  7. Slide 7: Focus Areas & Priorities

    FO C U S A R EA S & P R I O R I T I ES Investor presentation Q4 2018-19 Deliver • B-80 Development – Endeavor to deliver ‘First Oil’ by June 2020 • Phase - II development of Dirok to increase production by Q1 21-22 Development • Work with new operator ONGC to revive PY-3 Projects • Appraisal & Devel

  8. Slide 8: B-80 Development Plan

    B - 8 0 D E V E LO P M E N T P L A N Investor presentation Q4 2018-19 1 FDP involves drilling of two wells and process by MOPU 2 Marketing and pricing freedom Evacuating Gas/Oil through existing ONGC 3 lines 5000 bopd & Target: 15 mmscfd in Phase - I 50% PI June 2020 06 | H I N D U S T A N OIL E X P

  9. Slide 9: B-80 Updates

    B - 8 0 U P DAT ES Investor presentation Q4 2018-19 Project On-track for delivery of ‘First Oil’ by June 2020 First Oil Target June 2020 STOIIP/ GIIP 40 MMBBls/ 44 BCF Production Rate 5000 bopd of Oil & 15 mmscfd of gas from 2 wells in Phase - I Planned activities 2 new development wells. Processing

  10. Slide 10: Dirok Phase-II Development

    D I RO K P H A S E - I I D E V E LO P M E N T Investor presentation Q4 2018-19 Project on-track for delivery of additional gas by Q1 FY21-22 1. DRILLING 2. PROCESSING 3. DELIVERY 35 KM pipeline from HMGPP 4 development wells HMGPP to marketing hub of Duliajan & Appraisal capacity expansion - Will ai

  11. Slide 11: Kharsang Updates & Development Plan

    K H A RSA N G U P DAT ES & D E V E LO P M E N T P L A N Investor presentation Q4 2018-19 Plan for 18 wells in Phase - I FDP approved with the following parameters: Reservoir Upper Girujan OIIP/ GIIP 223 MMBBls/ 184 BCF Production Rate Production to be increased to 1800 bopd from ~650 bopd Planned Ac

  12. Slide 12: PY-3: Change in Operatorship

    P Y - 3 : C H A N G E I N O P E R ATO RS H I P Investor presentation Q4 2018-19 ― ONGC is assuming operatorship of PY-3 field under the PSC/JOA. Field will be operated under joint operatorship model with appropriate role for HOEC ― HOEC has 21% stake in PY-3. Operates PY-1 Gas field with an offshore

  13. Slide 13: Cambay Blocks

    C A M BAY B LO C KS Investor presentation Q4 2018-19 3 blocks with developed infrastructure with upside to be exploited E Asjol ; (O); PI 50.0% D North Balol ; (O); PI 25.0% C CB-ON-7; (O); PI 35.0% 3 blocks - Asjol, North Balol and CB-ON/7 R2 Area : CB-ON/7 ― Revised FDP submitted for Asjol & under

  14. Slide 14: Value Proposition

    VA LU E P RO P O S I T I O N Investor presentation Q4 2018-19 Quality Asset Portfolio Strong Organisation Focused Strategy Uniquely placed to combine a quality asset portfolio with a strong organisation through a focused strategy to deliver better returns 12 | H I N D U S T A N OIL E X P L O R A TI

  15. Slide 15: Quality Asset Portfolio

    Q UA L I T Y A S S E T P O RT F O L I O Investor presentation Q4 2018-19 A AAP-ON-94/1; (O); PI 26.882% • Portfolio of discovered resources – Ten blocks B AA/ONDSF/KHEREM/2016; (O); PI 40.0% with discoveries producing / ready to be developed K • Diverse geographical footprint - Presence in 4 out of

  16. Slide 16: Firing up the growth engine

    F I R I N G U P T H E G ROW T H E N G I N E Investor presentation Q4 2018-19 Gas (boe/d) Forecast Oil/ Cond. (bbl/d) GP ~ 21000 boepd GP ~ 15000 boepd GP – Gross Production NP – Net Production Boepd – Barrels of Oil Equivalent GP ~ 10000 boepd NP ~ 9000 GP - 9170 boepd boepd NP ~ 7500 boepd NP - 410

  17. Slide 17: Market Outlook

    M A R K E T O U T LO O K Investor presentation Q4 2018-19 GoI Price of Domestic Gas ($/mmbtu) Historic Brent price($/bbl) 6 120 5.05 5 4.66 100 3.82 3.69 4 3.36 80 3.06 3.06 2.89 60 3 2.5 2.48 40 2 20 1 0 0 Dec-2014 Mar-2015 Dec-2015 Mar-2016 Dec-2016 Mar-2017 Dec-2017 Mar-2018 Dec-2018 Mar-2019 Jun

  18. Slide 18: Business Outlook - Summary

    B U S I N ES S O U T LO O K - S U M M A RY Investor presentation Q4 2018-19 1 Unique value proposition - Quality asset portfolio with strong organisational capabilities 2 Company established on firm financial foundation with growing cash flow from operations 3 Management committed to growth through

  19. Slide 19: Annexures

    Annexures ; eas ~ | povereorerceerrersaree” |1]1i1)\/1(\1\)) Saeceeatea a at jl fi i i fi sl Halt | mt a

  20. Slide 20: Standalone Statement of Profit & Loss

    STA N DA LO N E STAT E M E N T O F P RO F I T & LO S S Investor presentation Q4 2018-19 For the year (₹ Crores) . Particulars 2018-19 2017-18 INCOME Revenue from operations 236.89 48.71 Other income 10.07 11.44 Total revenue 246.96 60.15 EXPENSES Expenses from producing oil and gas blocks 28.23 11.1

  21. Slide 21: Standalone Statement of Assets & Liabilities

    STA N DA LO N E STAT E M E N T O F A S S E T & L I A B I L I T I ES ( AU D I T E D ) Investor presentation Q4 2018-19 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Mar 31, 2019 March 31, 2018 Mar 31, 2019 March 31, 2018 Non-current assets Shareholders’ funds Property, Plant and Equipme

  22. Slide 22: Consolidated Statement of Profit & Loss

    CO N S O L I DAT E D STAT E M E N T O F P RO F I T & LO S S Investor presentation Q4 2018-19 For the year (₹ Crores) . Particulars 2018-19 2017-18 INCOME Revenue from operations 265.14 48.71 Other income 11.19 11.84 Total revenue 276.33 60.55 EXPENSES Expenses from producing oil and gas blocks 37.21

  23. Slide 23: Consolidated Statement of Assets & Liabilities

    CO N S O L I DAT E D STAT E M E N T O F A S S E T & L I A B I L I T I ES ( AU D I T E D ) Investor presentation Q4 2018-19 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Mar 31, Mar 31, 2019 March 31, 2018 March 31, 2018 2019 Non-current assets Shareholders’ funds Property, Plant and Eq

  24. Slide 24: GoI Policy on Royalty & Cess

    G O I P O L I C Y O N ROYA LT Y & C ES S Investor presentation Q4 2018-19 Previously After GoI Policy on Royalty & Cess Royalty & Cess Royalty & Cess Paid 100% by Licensee and not cost To be shared by JV parties in ratio of Revenue recoverable Revenue their PI and cost recoverable as contract costs

  25. Slide 25: Investment Multiples

    I N V EST M E N T M U LT I P L ES Investor presentation Q4 2018-19 Block AAP-ON-94/1 PY-1* PY-3* N. Balol Asjol CB-ON-7 Kharsang* Gas 10% 10% 10% 10% - - - Royalty Oil/Cond 20% INR 481/MT 10% - INR 481/MT 20% INR 481/MT Cess Oil/Cond 20% INR 900/MT 20% 0 INR 900/MT 20% INR 900/MT Cost Recovery limit

  26. Slide 26: RSC Parameters

    RS C PA R A M E T E RS Investor presentation Q4 2018-19 Block B-80 Kherem AA-ONHP-2017/19 Umatara Government Share of 12% 21% 22% 48% Revenue – LRP Government Share of 55% 99% 99% 99% Revenue - HRP 10% for crude oil, 12.5% for crude oil 12.5% for crude oil 12.5% for crude oil Royalty condensate and

  27. Slide 27: Dirok: Delivered results on fast-track mode

    D I RO K : D E L I V E R E D R ES U LTS O N FA ST - T R AC K M O D E Investor presentation Q4 2018-19 24 | H I N D U S T A N OIL E X P L O R A TI ON C O M P A N Y L I M I T E D

  28. Slide 28: Upcoming Natural Gas Grid in North-East

    U P CO M I N G N AT U R A L G A S G R I D I N N O RT H - EA ST Investor presentation Q4 2018-19 North Eastern Gas/Oil fields North Eastern gas fields of Dirok, Kharsang and Kherem indirectly connected to Indradhanush through Numaligarh Pipeline envisaged as part of NE gas grid Existing DNPL pipeline

  29. Slide 29: Upcoming Natural Gas Grid in North-East

    U P CO M I N G N AT U R A L G A S G R I D I N N O RT H - EA ST Investor presentation Q4 2018-19 Company Name Core business North – East natural gas grid (Indradhanush) Gas transporter that serves 38- tea estates, AGCL 900 commercial establishments and about connecting all seven NE state capitals and

  30. Slide 30: Kherem (Arunachal Pradesh – DSF Block)

    K H E R E M ( A R U N AC H A L P R A D ES H – D S F B LO C K ) Investor presentation Q4 2018-19 • Block Area: 16.45 Sq. Km. • Drilled Wells: 3 • Tested Production: ➢Oil 402 bopd ➢Gas not measured • Discovered Resources: DSF Data HOEC Internal Resources Million BBLs Million BBLs STOIIP 3 10.27 GIIP (

  31. Slide 31: Asset Portfolio & JV Partners

    A S S E T P O RT F O L I O & J V PA RT N E RS Investor presentation Q4 2018-19 Block Name Operator Location Oil/Gas PI Partner(s) Oil/Gas Consumers Gas – OIL India; Dirok HOEC Onshore Gas 27% Condensate – IOCL Gas – GAIL; Producing PY-1 HOEC Offshore Gas 100% Nil Condensate – CPCL CB-ON-7 HOEC Onsho

  32. Slide 32: Company Overview

    CO M PA N Y OV E RV I E W Investor presentation Q4 2018-19 Shareholding Pattern (more than 10 %) HDFC 10.79% 75.06% 14.15% (67,000+) Retail & Others AKGT Board of Directors Vivek Rae P. K. Borthakur Sharmila Amin Ashok Goel Rohit Rajgopal Dhoot P. Elango R. Jeevanandam Non-Executive Non-Executive No

  33. Slide 33: Contact

    CO N TAC T Investor presentation Q4 2018-19 For further information, please contact: Company : Investor Relations Advisors : Hindustan Oil Exploration Company Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L11100GJ1996PLC029880 CIN: U74900MH2014PTC259212 G. Josephin Daisy Gaurang Vasani/ Vikash Verma jdais

  34. Slide 34: Glossary

    G LO S SA RY Investor presentation Q4 2018-19 2P - Proved + Probable reserves RSC - Revenue Sharing Contract BCF - Billion Cubic Feet of Gas HMGPP - Hollong Modular Gas Processing Plant GGS - Gas Gathering Station M-GPP - Modular Gas Processing Plant MMbbls - Million Barrels of Oil MMSCFD - Million

Hindustan Oil Exploration Company — FY2019 Earnings Presentation on 6ix