Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q4 FY2021 Earnings Presentation
36 slides from Hindustan Oil Exploration's earnings presentation, June 2021
Slide 1: Investor Presentation | June 2021
Hindustan Oil Exploration Company Limited INVESTOR PRESENTATION | June 2021
Slide 2: HOEC – On the Cusp of Transformation
HOEC – On the Cusp of Transformation Right Resources Right Strategy Right Environment • Established player with • Short cycle projects with • Next level of revenue and proven track record immediate production uptick cashflow generation from project delivery • Experienced and focused • Cost effective
Slide 3: Proven Track Record
Proven Track Record Gross Production (boepd) 9,179 8,590 7,869 2,429 525 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 > 100% 27 Months 5 yr Gross Production CAGR Dirok – FDP to First Gas Timeline 3
Slide 4: Board of Directors
Board of Directors Vivek Rae - Non Executive Independent Director/ Chairman Mr Rae, a former secretary, Ministry of Petroleum & Natural Gas, Government of India, served in the Indian Administrative Services for 36 years. Subsequent to his retirement, Mr. Rae served as a whole-time member of the 7th
Slide 5: Tailored Asset Portfolio with Broad Geographical Presence
Tailored Asset Portfolio with Broad Geographical Presence Onshore Offshore Onshore Offshore Onshore Oil Well Oil Well Gas Gas Exploration • India Focused Asset Portfolio tailored to deliver our strategy of rapid development of discovered resources • Strong offshore presence with anchor assets on bot
Slide 6: Focused Strategy for Value Generation
Focused Strategy for Value Generation Uniquely placed with right organization and right asset portfolio to deliver superior value Focus on Low cost operating Light Asset Model Growing responsibly Growth strategy Discovered Resources model • Focus on discovered • Follow Light-Asset • Follow a low-cos
Slide 7: Combining Resources and Strategy to Extract Value
Combining Resources and Strategy to Extract Value Cost-effective delivery Near Field Exploration Opportunistic of Development to widen existing Portfolio Projects “Footprint” Growth Make Portfolio work to deliver Discover resources near existing Leverage “Opening Up” of Sector in value even in low p
Slide 8: Clear Strategy Delivering Cost Efficiency
Clear Strategy Delivering Cost Efficiency Lean team with Effective planning to reach Partnership with service expertise across OnG production quickly at lower providers for innovative E&P value chain cost contracting models Focus on Reducing infrastructural cost by ‘Value over Volumes’ converting ca
Slide 9: External Environment Presents Tailwinds for Growth
External Environment Presents Tailwinds for Growth • Tight supply control by OPEC+ and robust demand outlook leading to sharp recovery in oil and Industry Macro gas prices Scenario • Excess capacity in Oil Field Services (OFS) sector presents opportunity for cost effective and timely project executi
Slide 10: Operational Update
Operational Update 10
Slide 11: Q4-FY21 Operational Highlights
Q4-FY21 Operational Highlights Gross Production Net Production Gross Production Gross Production (BOEPD) (BOEPD) - PY-1 (BOEPD) - Dirok (BOEPD) Q4 FY21: 8,424 Q4 FY21: 2,380 Q4 FY21: 163 Q4 FY21: 7,525 FY21: 8,590 FY21: 2,460 FY21: 209 FY21: 7,654 Dirok • Dirok is consistently producing at full capa
Slide 12: B-80: Ready for 'First Oil' Post Monsoon – 60% PI
B-80: Ready for ‘First Oil’ Post Monsoon– 60% PI* • Drilling & completion – 2 subsea development wells KGB- Offshore Installation at B-80 Site • Offshore Installation(OI) for collecting, separating and processing well fluids • Subsea production controls and flexible flowlines / export lines • Gas ev
Slide 13: B-80 Project Update
B-80 Project Update KGB - Offshore Installation (OI) Flexibles & Umblicals Calm buoy • Safety reviews and • Flexible pipelines & Umblicals • Safely docked at Das Offshore, certifications completed installed & connected to KGB- Rohini Yard for the Monsoon OI Season • Class & flag certifications compl
Slide 14: B-80 Project – Post Monsoon Work
B-80 Project – Post Monsoon Work Scope for Completion Post – Monsoon • Installation & Hook-up of CALM buoy Single Point Mooring (SPM) System • Commissioning of Topsides connections on KGB OI • ‘First Oil’ in Q3-FY 22 14
Slide 15: Dirok: Progress on Phase-II development
Dirok: Progress on Phase-II development 34.75 mmscfd 743 boepd Currently, Oil India is the sole buyer for the gas produced in this field Condensate > 15% Gas Production Assam Gas Production (in Q4FY21) Production (in Q4FY21) Concentrated in India’s North-East Premier Basin • Phase – I execution invo
Slide 16: Dirok: E-auction for Dirok Gas Results
Dirok: E-auction for Dirok Gas Results Pipeline envisaged as part of NE gas grid Existing DNPL pipeline Margherita Gas pipeline to be laid by Dirok JV HIGHLIGHTS of E-Auction – 23rd & 24th June 2021 Significant Impact of E-auction Monthly gross Monthly Net Price used on Dirok Value – Illustration re
Slide 17: PY-1: Enhancing Production and Offtake Arrangements
PY-1: Enhancing Production and Offtake Arrangements USD 3.65 55 mmscfd 56 km Realised Price per Processing Sub sea MMBTU Capacity pipeline Cauvery • Only offshore platform in Cauvery Basin with 8 slots and four wells drilled • Unique, predominantly gas-bearing reservoir and the only offshore fractur
Slide 18: Kharsang: Phase I Development Plan
Kharsang: Phase I Development Plan ~600 bopd 30% 18 Number of Current Oil Production Direct + Indirect PI Wells to be drilled Field Overview • The Kharsang oil field is located in the state of Arunachal Pradesh and 60 kms away from Dirok. • Post drilling of 18 wells, production expected to increase
Slide 19: Cambay: Developments
Cambay: Developments 87 bopd 0.40 mmscfd Asjol, North Total Oil Production Total Gas Production Balol and Palej Cambay Cambay (Q4FY21) (Q4FY21) Marginal fields at Cambay Developments Gujarat • Asjol & North Balol – FDP approved. Planning for execution of FDP has commenced. EC Clearance process initi
Slide 20: Other Blocks
Other Blocks • Block awarded under DSF - 2016 HOEC PI JV Partners • Tested - Oil 402 bopd • Field Plan- 2 wells to be completed in 3 years from date of receiving PML Kherem • Forest Clearance in final stages. PML will be processed after 40% Forest Clearance • Block awarded under DSF - 2019 • Located
Slide 21: Financial Overview
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Slide 22: Standalone Statement of Profit or Loss
Standalone Statement of Profit or Loss PARTICULARS (INR Cr) Q4-FY21 Q3-FY21 FY21 FY20 INCOME Revenue from operations 23.36 24.18 99.44 179.84 Other income 0.83 2.53 11.82 21.58 Total revenue 24.19 26.71 111.26 201.42 EXPENSES Expenses from producing oil and gas blocks 5.85 5.68 22.96 26.00 Royalty,
Slide 23: Standalone Statement of Assets & Liabilities
Standalone Statement of Assets & Liabilities PARTICULARS (INR Cr) FY21 FY20 FY19 PARTICULARS (INR Cr) FY21 FY20 FY19 EQUITY AND LIABILITIES ASSETS Non-Current Asset 704.41 584.44 463.61 Equity 730.18 665.08 522.34 (a) Property, Plant and Equipment (a) Equity share capital 132.26 132.26 130.51 (i) Oi
Slide 24: Consolidated Statement of Profit or Loss
Consolidated Statement of Profit or Loss PARTICULARS (INR Cr) Q4-FY21 Q3-FY21 FY21 FY20 INCOME Revenue from operations 28.82 27.81 113.86 202.05 Other income 0.86 2.70 11.32 21.76 Total revenue 29.68 30.51 125.18 223.81 EXPENSES Expenses from producing oil and gas blocks 7.71 7.20 29.54 35.34 Royalt
Slide 25: Consolidated Statement of Assets & Liabilities
Consolidated Statement of Assets & Liabilities PARTICULARS (INR Cr) FY21 FY20 FY19 PARTICULARS (INR Cr) FY21 FY20 FY19 EQUITY AND LIABILITIES ASSETS 733.17 679.71 540.24 Non-Current Asset 958.41 769.13 489.00 Equity (a) Property, Plant and Equipment (a) Equity share capital 132.26 132.26 130.51 (i)
Slide 26: Capital Market Data
Capital Market Data S&P Oil and Gas Index HOEC 250% Price Data (31st March, 2021) 200% CMP (INR) 97.15 150% 52 Week H/L (INR) 116.25/35.0 100% Avg. Net Turnover 57.1 (INR Mn) 50% Market Cap (INR Mn) 12,801.15 0% Equity Shares 132.24 Outstanding (Mn) 26
Slide 27: Backup Slides
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Slide 28: Production Sharing Model
Production Sharing Model Aggregate Aggregate Investment value of Net value of *Aggregate value to be taken from the year when production/investments Multiple Cash Income Investments first incurred Net Cash Income Investments Cost Petroleum Contractors exploration cost + Profit Petroleum + + Contract
Slide 29: Investment Multiple under PSC
Investment Multiple under PSC Block AAP-ON-94/1 PY-1* PY-3* North Balol Kharsang* CB-ON-7 Asjol* Gas 10% 10% 10% 10% - - - Royalty Oil/Cond 20% - 10% - 20% 20% 20% Cess Oil/Cond 20% 20% 20% 0% 20% 20% 20% Cost Recovery 80% 100% 100% 80% 100% 60% 100% Limit Investment Multiple (Govt. Share Percentage
Slide 30: Revenue Sharing Model
Revenue Sharing Model 90% 100% Bidding process based on the Revenue Sharing Model involves 2 parameters – % of Govt. share of revenue 90% 80% Lower Revenue Point (LRP) and Higher Revenue Point (HRP). The revenue share 70% for intermediate points will be calculated by linear interpolation. The bidder
Slide 31: Industry Overview
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Slide 32: Industry Snapshot
Industry Snapshot Domestic Natural Gas (MMSCM) Robust Demand Policy Support • India is the third largest energy • Government has enacted various Gross natural gas production Natural gas consumption LNG imports consumer and fourth largest policies such as OALP, DSF and 63,932 Production enhancement 5
Slide 33: Milestones in the Oil and Gas Industry
Milestones in the Oil and Gas Industry State Monopoly - Discovered Small Field Bid Round II Acreages awarded Liberalization of E&P Sector with - Policy permitting exploration & exploitation to NOCs on 9 NELP rounds. 254 exploratory Discovered Small of unconventional hydrocarbons Nomination Basis blo
Slide 34: Price Trends for Crude Oil and Natural Gas
Price Trends for Crude Oil and Natural Gas Average Brent Crude Oil Price ($/barrel) Domestic Natural Gas Prices (US$/MMBtu) 6 120 111.26 111.63 5.05 108.56 5 4.66 98.97 100 4 3.82 79.61 3.69 80 3.36 71.34 3.23 3.06 3.06 64.3 2.89 61.74 3 60 54.13 2.5 2.48 52.32 2.39 43.64 41.96 2 1.79 1.79 40 1 20 0
Slide 35: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 36: Thank You
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