Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q2 FY2019-20 Earnings Presentation
31 slides from Hindustan Oil Exploration's earnings presentation, Nov 7, 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION 7TH NOVEMBER 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
Slide 2: Safe Harbour
SA F E HARBOUR Investor presentation Q2 2019-20 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
Slide 3: Contents
CO N T E N TS Investor presentation Q2 2019-20 1 Q2 FY 19-20 Performance Highlights 2 Focus Areas & Priorities 3 Business Outlook 02 | H I N D U S T A N OI L E X P L O R A TI O N C O M P A N Y L I M I T E D
Slide 4: Q2 FY19-20 Performance Highlights
Q 2 F Y 1 9 - 2 0 P E R F O R M A N C E H I G H L I G H TS Investor presentation Q2 2019-20 Gross Production Net Production • Dirok delivered full production. End Customers consumption at full capacity (BOEPD) (BOEPD) Q2 FY20 : 9740 Q2 FY20 : 3820 • Production at PY-1 had to be curtailed due to majo
Slide 5: Focus Areas & Priorities
F O C U S A R EA S & P R I O R I T I ES Investor presentation Q2 2019-20 Deliver • B-80 Development – Endeavor to deliver ‘First Oil’ by June 2020 Development • Phase - II development of Dirok to increase production by Q1 21-22 Projects • Appraise North Dirok Potential within Dirok Development Area
Slide 6: B-80 Development Plan
B - 8 0 D E V E LO P M E N T P L A N Investor presentation Q2 2019-20 1 FDP involves drilling of two wells and process by MOPU 2 Marketing and pricing freedom Evacuating Oil through spread-moored 3 FSO & shuttle tankers; Gas through existing ONGC lines STOIIP – 40 MMbbls; 4 GIIP – 44 bcf 5000 bopd &
Slide 7: B-80 Project Update
Investor presentation Q2 2019-20 B - 8 0 P ROJ EC T U P DAT E 1. DRILLING 2. MOPU 3. EXPORT SYSTEMS 2 Subsea wells Processing of Hydrocarbon Hydrocarbon Evacuation - Drilling Rig ‘Parameshwara’ from Shelf drilling secured - Topsides of MOPU awarded to Expro, UK. - Oil to be exported through spread-m
Slide 8: B-80 – Significant Progress toward First Oil
B - 8 0 – S i g n i f i c a n t P ro g re s s to wa rd ‘ F i rst o i l ’ Investor presentation Q2 2019-20 Engineering works ongoing in Lamprell Shipyard, Hamriyah, UAE Leg Reinforcement Knock-out drum installed 07 | H I N D U S T A N OI L E X P L O R A TI O N C O M P A N Y L I M I T E D
Slide 9: 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 Q2 2019-20 Project on-track for delivery of additional gas by Q1 FY21-22 RFDP approved by Managing Committee 1. DRILLING 2. PROCESSING 3. DELIVERY 35 KM pipeline from HMGPP 3 development wells HMGPP to marketing hub of Duliajan & Ap
Slide 10: 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 Q2 2019-20 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
Slide 11: PY-3: Corporate Developments
Investor presentation Q2 2019-20 P Y - 3 : CO R P O R AT E D E V E LO P M E N TS ― HEPI was acquired by Inveniere Energy on 2nd October 2019 FPS PY3 ― Operatorship is retained by Hardy under new management ― HOEC has 21% stake in PY-3. Operates PY-1 Gas Gas export field with an offshore platform and
Slide 12: Cambay Blocks
C A M BAY B LO C KS Investor presentation Q2 2019-20 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 approved for Asjol & PSC ex
Slide 13: Value Proposition
VA LU E P RO P O S I T I O N Investor presentation Q2 2019-20 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 OI L E X P L O R A TI
Slide 14: Quality Asset Portfolio
Q UA L I T Y A S S E T P O RT F O L I O Investor presentation Q2 2019-20 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
Slide 15: 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 Q2 2019-20 14 | H I N D U S T A N OI L E X P L O R A TI O N C O M P A N Y L I M I T E D
Slide 16: Market Outlook
M A R K E T O U T LO O K Investor presentation Q2 2019-20 Historic Brent Price ($/bbl) GoI Price of Domestic Gas ($/mmbtu) 120 6 5.05 4.66 100 5 3.82 3.69 80 4 3.06 3.36 3.23 2.89 3.06 3 2.5 2.48 60 2 40 1 20 0 0 Jul-2014 Jul-2015 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Nov-2014 Nov-2015 Nov-2016 Nov-20
Slide 17: Business Outlook - Summary
B U S I N ES S O U T LO O K - S U M M A RY Investor presentation Q2 2019-20 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
Slide 18: Annexures
Annexures
Slide 19: Standalone Statement of Profit & Loss
S TA N DA LO N E S TAT E M E N T O F P RO F I T & LO S S Investor presentation Q2 2019-20 For the Quarter (₹ Crores) . Particulars Qtr2-19-20 Qtr1-19-20 INCOME Revenue from operations 56.86 49.35 Other income 4.89 4.03 Total revenue 61.75 53.38 EXPENSES Expenses from producing oil and gas blocks 6.6
Slide 20: Standalone Statement of Assets & Liabilities
S TA N DA LO N E S TAT E M E N T O F A S S E T & L I A B I L I T I ES ( U N AU D I T E D ) Investor presentation Q2 2019-20 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Sep 30, 2019 March 31, 2019 Sep 30, 2019 March 31, 2019 Non-current assets Shareholders’ funds Property, Plant and E
Slide 21: Consolidated Statement of Profit & Loss
CO N S O L I DAT E D S TAT E M E N T O F P RO F I T & LO S S Investor presentation Q2 2019-20 For the Quarter (₹ Crores) . Particulars Qtr2-19-20 Qtr1-19-20 INCOME Revenue from operations 62.38 56.67 Other income 5.06 4.07 Total revenue 67.44 60.74 EXPENSES Expenses from producing oil and gas blocks
Slide 22: Consolidated Statement of Assets & Liabilities
CO N S O L I DAT E D S TAT E M E N T O F A S S E T & L I A B I L I T I ES ( U N AU D I T E D ) Investor presentation Q2 2019-20 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Sep 30, 2019 March 31, 2019 Sep 30, 2019 March 31, 2019 Non-current assets Shareholders’ funds Property, Plant a
Slide 23: GoI Policy on Royalty & Cess
G O I P O L I C Y O N ROYA LT Y & C ES S Investor presentation Q2 2019-20 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
Slide 24: Investment Multiples
I N V ES T M E N T M U LT I P L ES Investor presentation Q2 2019-20 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 lim
Slide 25: RSC Parameters
RS C PA R A M E T E RS Investor presentation Q2 2019-20 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
Slide 26: 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 S T - T R AC K M O D E Investor presentation Q2 2019-20 24 | H I N D U S T A N OI L E X P L O R A TI O N C O M P A N Y L I M I T E D
Slide 27: 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 Q2 2019-20 • 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 (
Slide 28: 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 Q2 2019-20 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
Slide 29: Company Overview
CO M PA N Y OV E RV I E W Investor presentation Q2 2019-20 Shareholding Pattern (more than 10 %) HDFC 10.65% 75.39% 13.96% (66,000+) 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
Slide 30: Contact
CO N TAC T Investor presentation Q2 2019-20 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
Slide 31: Glossary
G LO S SA RY Investor presentation Q2 2019-20 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 — Q2 FY2019-20 Earnings Presentation on 6ix