Oil India Limited · NSE:OIL
Oil India — Investor Presentation (August 2018)
39 slides from Oil India's investor presentation, Aug 29, 2018
Slide 1: Oil India Limited Investor Presentation – August 2018
Oil India Limited Investor Presentation – August 2018 1
Slide 2: Table of Contents
TABLE OF • Company Overview CONTENTS • Strategic Strengths • Assets Overview • Operating & Financial Performance • Growth Strategy 2
Slide 3: Company Overview
Company Overview 3
Slide 4: Oil India Ltd.: An Introduction
Oil India Ltd.: An Introduction 6 decades of presence in oil & gas sector Rich Heritage Owns and operates a fully-automated cross country crude oil pipeline Became a Public Sector Undertaking in 1981 Strong Parentage with GoI ownership of 66.13% Govt. of India Awarded ‘Navratna’ status in
Slide 5: Experienced Management Team
Experienced Management Team Functional Directors Government Nominee Directors Utpal Bora Experience in diverse fields S. Sudhir IFS 1993 Chairman & MD of exploration management Jt. Sec. (IC), Former Consul General of > 33 yrs experience of onshore and offshore fields MoP&NG India in Sydney D N
Slide 6: Shareholding Pattern
Shareholding Pattern Corporate Bodies, 11.23 Listed on BSE & NSE DII, 14.33 GOI, 66.13 Number of shares Others, 3.85 113.49 crore FII, 4.46 Dividend FY18 Interim Rs.14/ Share, Final Re.1/ Share Key shareholders % Shareholding Share price (52 Week High / Low) Government of India 66.13 Rs.259 / Rs.188
Slide 7: Share Price Movement
Share Price Movement 18000 600 16000 500 14000 12000 400 10000 Price Correction for 300 8000 Bonus Issue 6000 200 4000 100 2000 0 0 BSE OIL & Gas Index OIL ONGC Share performance of OIL in line with peers 7
Slide 8: Oil India: Milestones and Track Record
Oil India: Milestones and Track Record Formed as a JV First time IPO – Raised Intl. Credit Rating: Acquisitions in Acquisition in Awarded 4 GAs with Burmah Oil Participation Rs.2,777 crore. Moody's : ‘Baa2’ Rovuma Block in TYNGD and JSC under CGD Company In NELP Listed in Stock Exch. Fitch : BBB(-)
Slide 9: Key Performance Highlights
Key Performance Highlights Awarded 9 blocks under first bidding round of OALP Increase in PAT by 72% to Rs.2,668 crore in FY 18 from Rs.1,549 crore in FY 17 Increase in crude oil production by 3.57% to 3.394 MMT in FY 18 Hydrocarbon discovery in KG basin, 1st HPHT well discovery Commissioning of win
Slide 10: Strategic Strengths
Strategic Strengths 10
Slide 11: Integrated and Diversified Oil & Gas Player
Integrated and Diversified Oil & Gas Player Non Conventional Exploration Production Transportation Downstream Energy Domestic: 44 Crude oil Crude Oil Refining and Wind Energy active E&P blocks 44 installations 1,157 km marketing Capacity 174 1,602 km pipeline; Over 6 26% equity stake
Slide 12: In-House Capabilities
In-House Capabilities Vertically Integrated E&P Operations Infrastructure to Support E&P Activities One 2D (in house), Three 3D Seismic crew (one in 10 Logging Units house , 2 CH) Drilling Seismic API Wireline 24 Work-over Rigs (12 19 Drilling Rigs (2D and 3D) Logging in house, 12 CH) (11 in house,
Slide 13: Technology Induction
Technology Induction Deployment of wide array of IOR/ EOR to achieve maximum recovery of oil reserves Hydro-frac operations to produce tight sands Radial drilling technology to improve productivity ESPs to improve artificial lifting from wells Gravel pack completion for efficient production of uncon
Slide 14: Assets Overview
Assets Overview 14
Slide 15: Domestic Assets
Domestic Assets Non Area Blocks Operated Total Operated (SQKM) PML (Nom) 22 0 22 4826 Kherem 40% PEL (Nom) 3 0 3 332 AAP-ON-94/1 44.1% Kharsang 40% Pre-NELPJV 0 2 2 121 NELP 5 2 7 9445 DSF 0 1 1 16 MPA Nominated PML / PEL OALP 9 0 9 7907 Total 39 5 44 22647 AA-ONN-2010/3 40% RP Nominated PML AA-ON
Slide 16: International Assets
International Assets Libya US Area 95/96 25% 6,629sq.km Colorado 20% 60 sq.km Ghadames Basin Julesburg Basin Russia License 61 50% 4,991sq. km TAAS 10% 1,382sq. km Nigeria JSC Vankor 8% 1,869sq.km 17.5% 1,295sq.km OML 142 Venezuela Israel 203sq.km 25% 357 sq.km Carabobo 1 North 3.5% Block 32 180sq.k
Slide 17: Major Overseas Projects
Major Overseas Projects Project Carabobo, Venezuela Area 1 Rovuma, Mozambique Two blocks in Orinoco Heavy Oil Belt OIL & OVL acquired 10% stake in Jan. 2014 ~ 30 billion barrels of Oil in place Acquisition Cost for OIL - US$ Production started from Dec 2012 1,007 mn. Cumulative Productio
Slide 18: Major Overseas Projects (Contd...)
Major Overseas Projects (Contd...) Vankorneft, Russia Taas Yuryakh, Russia Acquired 23.9% stake in Oct 2016 Acquired 29.9% stake in Oct 2016 jointly with IOCL & BPRL jointly with IOCL & BPRL Acquisition Cost: US$ 2.02 Billion Acquisition Cost: US$ 1.121 Billion OIL’s share 33.5% OIL’s sh
Slide 19: Operating and Financial Performance
Operating and Financial Performance 19
Slide 20: Operating Performance
Operating Performance Crude Oil Production (MMT) Natural Gas Production (MMSCM) 3.39 2,937 2,905 3.25 3.28 2,838 0.84 696 FY16 FY17 FY18 Q1 FY 19 FY16 FY17 FY18 Q1 FY19 20
Slide 21: Large and Diversified Reserve Base
Large and Diversified Reserve Base Balance Domestic Recoverable Reserves Domestic Reserves Split by Type (2P) Natural Gas (MMTOE) Crude Oil (MMT) 165 Crude, Gas, 58% 42% 128 80 105 79 27 1P 2P 3P Consistent Reserve Replacement Ratio >1 Total Reserves Split by Geography (2P) 1.38 Overseas, 1.34 19% 1
Slide 22: Competitive Cost Structure
Competitive Cost Structure Finding & Development Cost (USD/BOE) Crude Crude OilOilProduction Production Cost Cost(USD / bbl) (USD / bbl) 30.06 27.78 8.4 26.55 15.63 17.61 16.59 6.1 6.1 5.8 9.96 12.15 12.45 FY 16 FY 17 FY 18 4.1 4.2 Raising Cost Levies Natural Gas Production Cost (USD/ MMBTU) 1.5 1.6
Slide 23: Track Record of Strong Financial Performance
Track Record of Strong Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) & EBITDA Margin (%) 5,395 12,141 4,982 11,159 11,191 4,785 47% 45% 43% 44% 3,517 1,644 FY16 FY17 FY18 Q1 FY19 FY16 FY17 FY18 Q1 FY19 EBITDA EBITDA Margin PAT (Rs. Crore) & PAT Margin (%) 2,668 2,302 21% 1,549 22% 20%
Slide 24: EPS & Dividend
EPS & Dividend Dividend (Rs Crore) Dividend Payout Ratio (% of PAT) GOI Others 72% 1121 1173 962 374 397 42% 44% 311 651 747 776 FY 16 FY 17 FY 18 FY16 FY17 FY18 Earning Per Share (Rs.) 23.32 19.51 13.13 6.20 FY16 FY17 FY18 Q1 FY19 24
Slide 25: Strong Balance Sheet
Strong Balance Sheet Net Worth (Rs. Crore) Book Value per Share (Rs.) 256 23,202 23,106 246 22,802 22,745 241 220 FY16 FY17 FY18 Q1 FY19 FY16 FY17 FY18 Q1 FY19 Cash and bank balance (Rs. Crore) 10,088 7,502 4,137 3,528 FY16 FY17 FY18 Q1 FY19 25
Slide 26: Low Leverage
Low Leverage Total Debt (Rs. Crore) Total Debt / Equity (%) 9,489 9,133 8,948 9,004 40.0% 41.0% 38.6% 39.6% FY16 FY17 FY18 Q1 FY19 FY16 FY17 FY18 Q1 FY19 Net Debt/ EBITDA (x) 1.2 0.5 FY17 FY18 26
Slide 27: Contribution to Exchequer
Contribution to Exchequer Central Exchequer (Rs.crore) 1,411 1,439 1,340 1,229 1,224 1,114 719 681 475 2015-16 2016-17 2017-18 Corporate Tax Cess Dividend & Others State Exchequer (Rs.crore) 2,448 1,268 1,482 593 564 626 2015-16 2016-17 2017-18 Royalty VAT & Others Royalty for 2016-17 includes payme
Slide 28: Realized Price for Crude Oil & Natural Gas
Realized Price for Crude Oil & Natural Gas Crude Oil (US$/ bbl) Natural Gas (US$/ MMBTU) 72.0 5.05 55.7 4.66 47.4 48.0 45.3 3.82 37.4 3.06 3.06 2.89 27.9 28.8 2.50 2.48 2015-16 2016-17 2017-18 Q1 2018-19 Nov-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Price Realized Net Realization after Lev
Slide 29: Growth Strategy
Growth Strategy 29
Slide 30: Capex Plans
Capex Plans 2017-18 (Actual) : Rs.3,400 crore 2018-19 (Plan) : Rs.4,300 crore 12% 8% 33% 23% 9% 20% 20% 26% 20% 29% 2015-16 391 753 706 921 1002 3622 2016-17 375 1623 915 1273 151 4337 Survey Exploratory Drilling Development Drilling Capital Equipment Overseas Projects 30
Slide 31: Production Guidance for FY'19
Production Guidance for FY’19 2018-19 (Target) Crude oil 3.661 MMT Natural gas 3,020 MMSCM 31
Slide 32: Short Term Growth Perspective
Short Term Growth Perspective Ningru PML: • Part of Assam & Assam-Arakan basin. • PML awarded in 2018 • Resources mobilised to resume drilling activities. • PML includes Kumchai oil field with an estimated Oil-in-place (OIP) reserve of ~ 94 mn. bbl and Gas-in-place (GIP) is of ~ 4055 MMSCM. • Curren
Slide 33: Short Term Growth Perspective (contd..)
Short Term Growth Perspective (contd..) Extended Reach Drilling (ERD) ERD planned in Baghjan field to produce oil & gas from the reservoirs below Dibru - Saikhowa National Park (DSNP) MoP&NG approval for ERD obtained Plan to drill seven ERD wells to extract oil from depth of about 3900-4000 me
Slide 34: Long Term Growth Strategy
Long Term Growth Strategy OIL has aspiration to be an international E&P player with operations at scale in at least two geographical clusters outside India, significantly higher production, reserves and cash flows while being known globally for its capabilities to extract value from mature assets. 1
Slide 35: Strategies to Achieve 2030 Aspirations
Strategies to Achieve 2030 Aspirations Reimagine Main Producing Area development to maximise potential Step up exploration and development activities in select Indian basins Build international presence at scale in one or two geographic clusters Pursue selective, profitable diversification in the en
Slide 36: Positive Policy Environment
Positive Policy Environment Maximising domestic Oil & Gas production a strategic priority for Govt. Aim to reduce import dependence by 10% by 2022. Hydrocarbon Exploration Licencing Policy implemented in place of NELP 1st round of OALP bidding completed. OIL awarded 9 blocks. National Data
Slide 37: Positive Policy Environment
Positive Policy Environment Monetisation of marginal fields: DSF 1st round completed in 2018, 2nd bidding round launched Unconventional Exploration Policy for PSUs Recent Policy announcements: Sharing of royalty & Cess on Pre-NELP blocks by all participants Additional Extension of Explor
Slide 38: Conclusion
Conclusion 2nd Largest Public Sector E&P Company …With Strong Credit Metrics Steady and sustained growth Sound financial health Strong operating track record 6 decades of E&P expertise Spreading wings: NE – Pan India – Global Large prospective E&P acreage Pioneer in Pipeline Transportation A
Slide 39: Thank You
Thank You 39