Oil India Limited · NSE:OIL
Oil India — Investor Presentation (February 2011)
38 slides from Oil India's investor presentation, February 2011
Slide 1: Investor Presentation
Investor Presentation A Navratna Company February, 2011
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward looking statements concerning OIL India’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements.
Slide 3: Oil India Limited – An Overview
Oil India Limited – An Overview
Slide 4: Oil India: Brief Overview
Oil India: Brief Overview Rich Heritage Independent India’s first commercial oil discoveries, with the first made in 1953 Integrated O&G Player Presence across Oil & Gas Value Chain (E&P, Transportation and Downstream) Infrastructure to support growth Large Acreage Domestic acreage: 127,879 square k
Slide 5: Shareholding pattern
Shareholding pattern 4.1% 0.7% 1.7% 3.3% 11.9% 78.4% Promoters (GOI) Bodies Corporate Public & Others FII MF FI / Banks Key shareholders % Shareholding Indian Oil Corporation 4.45% Bharat Petroleum Corporation 2.23% • Listing :Listed on BSE/NSE on 30th Sept 2009 Hindustan Petroleum Corporation 2.23%
Slide 6: Share price performance vs ONGC
6 SHARE PRICE` SHARE PRICE` 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,550 5-Nov-10 5-Nov-10 8-Nov-10 8-Nov-10 9-Nov-10 9-Nov-10 10-Nov-10 10-Nov-10 11-Nov-10 11-Nov-10 12-Nov-10 12-Nov-10 15-Nov-10 15-Nov-10 16-Nov-10 16-Nov-10 18-N
Slide 7: Share price performance vs NIFTY and SENSEX
7 SHARE PRICE` SHARE PRICE` 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 5-Nov-10 5-Nov-10 8-Nov-10 8-Nov-10 9-Nov-10 9-Nov-10 10-Nov-10 10-Nov-10 11-Nov-10 11-Nov-10 12-Nov-10 12-Nov-10 15-Nov-10 15-Nov-10 16-Nov-10 16-Nov-10 18-Nov-10 18-Nov
Slide 8: Our Vision
Our Vision "The fastest growing energy company with a global presence providing value to the shareholder" Fastest growing Energy Company with highest profitability. Delight customers with quality products and services at competitive prices Learning Organization, nurturing initiatives, innovations an
Slide 9: Rich heritage of building a company
Rich heritage of building a company • Independent India’s first commercial oil discoveries were made by Assam Oil Company – Nahorkatiya, Assam – 1953 – Moran, Assam – 1956 • Incorporated as Joint Sector Company on 18 February, 1959 – 2/3rd Owned by Assam Oil Company / Burmah Oil Company – 1/3rd Owne
Slide 10: Integrated Oil & Gas Player
Integrated Oil & Gas Player Exploration Production Transportation Downstream Domestic: 30 E&P 50 years of Crude Oil: Refining and blocks1 experience – 1,157 km pipeline ; marketing petroleum FY 10 Produced ~6 MMT capacity products: International: Egypt, 25.70 mm bbl of – 26% equity stake Gabon, Iran
Slide 11: Strong Domestic Acreage Base
Strong Domestic Acreage Base Blocks Op N/Op Total NELP 12 18 30 AA-ONN 30% Pre-NELPJV - 3 3 PEL (Nom) 19 - 19 AA-ONN 90% PML 13 - 13 AA-ONN 50% ASSAM +AP Total 44 21 65 AA-ONN 85% AA-ONN 50% 60% RJ-ONN AAP-ON 16% AA-ONN 20% 60% RJ-ONN AA-ONN 15% AA-ONN 85% 75% RJ-ONN AA-ONN 10% MN-OSN 20% MZ-ONN 75%
Slide 12: With Dominant International Footprint
With Dominant International Footprint LIBYA EGYPT 50 7,087 Area 86 Block 3 8,287 25 50 2,710 Area 102/4 Block 4 2,600 (GSPC) 25(Sonatrach) 6,629 Area 95/96 NIGERIA SUDAN 741 km 10 17.5 (Summit) 2,094 OPL 205 Pipeline GABON IRAN 45 3,761 Shakti Farsi Offshore 3,500 20(OVL) TIMOR LESTE 12.5 3.5 Block
Slide 13: Strong Reserve Base with Significant Growth Potential
Strong Reserve Base with Significant Growth Potential In MMBBL As on 01/04/2010 1600 1,437 1400 1200 522 957 1000 800 377 600 521 915 400 239 580 200 282 0 1P 2P 3P Crude Oil Natural Gas 1P Reserves represent: ≥ 11 Years current production of Crude Oil ≥ 15 Years current production of Natural Gas ≥
Slide 14: Healthy and Consistent Reserve Replacement Ratio
Healthy and Consistent Reserve Replacement Ratio Reserve Replacement Ratio (x) 1.59 2.04 2.04 1.69 1.65 Crude Oil and Natural Gas (O+OEG) Production and Reserve Accretion (in MMTOE) 10.4 10.3 9.4 9.7 8.4 5.6 5.9 5.3 5.1 5.1 FY2006 FY2007 FY2008 FY2009 FY2010 Production (O + OEG) Accretion Adequate r
Slide 15: Integrated In-house E&P Infrastructure To Support Growth
Integrated In-house E&P Infrastructure To Support Growth Infrastructure to Support E&P Activities Production & Storage Facilities Two 2D and 72 Six Logging One 3D Production Seismic Crew Trucks Installations 5,000 Km ~150k KL 14 W/over 11 Drilling O&G Crude Rigs Rigs Pipelines Storage In house Exper
Slide 16: Strategy to Deliver Long Term Growth and Shareholder Value
Strategy to Deliver Long Term Growth and Shareholder Value 1 Use Advanced Techniques to Improve Existing Productivity Continue to induct world class technology 5 Explore Non-conventional 2 Increase Reserves and energy sources Production in Existing Acreage Explore alternate energy Further Integrate
Slide 17: Significant Investment Lined Up in Next 2 Years
Significant Investment Lined Up in Next 2 Years USD 1.6 bn of investment plans in the next two fiscal years Significant focus on Exploration and Development of existing acreage potential and M&A 2010-2011: ` 42,130 mn 2011-2012: ` 31,803 mn Overseas M&A Projects 1% 11% Exploration & Appraisal Domest
Slide 18: Planned Activities in FY12
Planned Activities in FY12 3D Seismic Surveys Exploratory Drilling Development Drilling 34 1,767 34 22 26 761 FY11 FY12 FY11 FY12 FY11 FY12 Substantial Increase in 3D Surveys, Exploratory and Development Drilling Planned. 18 A NavRatna Company
Slide 19: Recent Developments
atae sisar tates Oil India Limited Recent Developments
Slide 20: Select Highlights
Select Highlights OIL’s shares listed on NSE/BSE on 30.09.2009. Achieved the highest daily rate of crude oil production of 3.725 MTPA (> 26.5 mmbbls/Year) Achieved the highest daily rate of natural gas production of 6.67 MMSCMD in North East and potential of 0.93 MMSCMD in Rajasthan Navratna status
Slide 21: Select Highlights (Contd.)
Select Highlights (Contd.) Hydrocarbon discoveries in Assam - 03 Nos. so far in FY’11. FY’10 - Reserve Accretion was 9.65 MMTOE (101.6% of target). Entry in Offshore as Operator and Deep Water Block as Joint Operator. Entry in CBM Block (Assam) Examining Shale Gas potential of Assam-Arakan Basin. OI
Slide 22: Select Highlights (Contd.)
Select Highlights (Contd.) Q3 Q3 9M 9M Variance Variance Parameter Unit FY2011 FY2010 (%) FY2011 FY2010 (%) Drilling m 26956 42031 -35.87 96360 107323 -10.21 Crude Oil Production MMT 0.928 0.904 2.65 2.659 2.691 -1.19 Crude Oil Sales MMT 0.912 0.904 1.00 2.642 2.709 -2.47 Natural Gas Production BCM
Slide 23: Overseas Update
Overseas Update • Libya –3 wells drilled. Commerciality of Hydrocarbon could not be established • Gabon – 100 Sq. Km of 3D Acquisition to be completed by Jan, 2011. Commenced from 22.10.2010. • Venezuela – Mixed Company Contract signed on 12th May, 2010. Action initiated for approval of Budget and e
Slide 24: NELP Update
NELP Update • Block MN-OSN-2002/2 (Operator – ONGCL) Discovery made and Appraisal plan approved. Four (4) wells drilled including the first appraisal well. Estimated In-place Reserves – 56.91 BCM. • AAP-ON-94/1 (Operator – HOEC) Discovery made and Appraisal plan approved. Initial testing results ind
Slide 25: Operating Performance
stat dtear farses Oil India Limited Operating Performance
Slide 26: Crude Oil and Natural Gas Production
Crude Oil and Natural Gas Production Crude Oil Production (mm bbl) Natural Gas Production (mm scm) 25.70 2341 2415 24.95 2269 22.38 1831 1752 0.93 19.21 18.99 2007-08 2008-09 2009-10 9M FY'10 9M FY'11 2007-08 2008-09 2009-10 9M FY'10 9M FY'11 • The shortfall in Crude Oil and NG Production at the end
Slide 27: Crude Oil Production Cost (Assam & AP)
Crude Oil Production Cost (Assam & AP) USD/ Barrel 7.09 7.10 7.24 7.24 6.806.80 4.80 4.80 A NavRatna Company
Slide 28: Low Finding & Development Costs
Low Finding & Development Costs Finding and Development Costs (USD / bbl) OIL has the Advantage of Low Finding & Development costs. 28 A NavRatna Company
Slide 29: Financial Performance
stat dtear farses Oil India Limited Financial Performance
Slide 30: Sharing of Subsidy by Upstream Companies
Sharing of Subsidy by Upstream Companies USD mn 2006-07 2007-08 2008-09 2009-10 9M-FY10 9M-FY11 ONGC 3762 5465 6137 2435 1367 2794 OIL 441 573 657 327 183 370 GAIL 329 348 368 280 194 265 Total 4532 6386 7163 3042 1744 3428 % SHARING 2006-07 2007-08 2008-09 2009-10 9M-FY10 9M-FY11 ONGC 83% 86% 86% 8
Slide 31: Realized Price
Realized Price (USD/barrel) 83.22 81.69 79.73 68.53 66.25 60.57 58.13 55.57 56.21 57.11 40.11 43.05 39.01 39.80 36.15 FY2008 FY2009 FY2010 9M FY10 9M FY'11 Gross Realized Price Realized Price after Subsidy/Discount Net Realized Price 31 A NavRatna Company
Slide 32: Revenue and profitability
Revenue and profitability Revenue and profitability analysis (USD mn) 2,000 1868 Income PAT 1,677 1577 1,600 1,401 1414 1,242 1,239 1,200 800 550 509 460 455 379 367 400 317 0 FY2006 FY2007 FY2008 FY2009 FY2010 9M FY2010 9M FY2011 Note: • Exchange rate 1 USD = 48.52 INR used for figures upto FY2009;
Slide 33: Networth and Book Value
Networth and Book Value Networth (USD mn) and Book Value Analysis (USD) Networth (LHS) Book Value (RHS) 3,412 3,500 20 2,897 2,975 3,000 14.19 15 2,500 12.05 12.37 1,935 2,000 1,629 10 1,406 9.0 1,500 7.6 1,220 5.7 6.6 1,000 5 500 0 0 FY2006 FY2007 FY2008 FY2009 FY2010 9M FY2010 9M FY2011 33 A NavRa
Slide 34: Cash Flow and EBITDA Margin
Cash Flow and EBITDA Margin Cash Flow (USD mn) EBITDA (USD mn) and EBITDA MARGIN (%) 1000 60% 923 54% 600 120% 53% 900 842 505 49% 50% 490 800 766 500 100% 734 462 43% 44% 700 42% 40% 400 391 80% 586 600 344 533 500 30% 300 60% 400 20% 300 200 40% 200 10% 100 20% 100 0 0% 0 0% FY2007 FY2008 FY2009 F
Slide 35: Dividends distribution and Earnings per share highlights
Dividends distribution and Earnings per share highlights Dividends distribution Earnings per share and Debt-Equity ratio 35 360 120 114 0.14 340 340 0.12x 104 33.93 305 320 34 33.56 100 0.12 300 280 86 83 32.9 0.1 33 260 275 240 80 72 265 260 220 0.08 32 200 31.32 60 180 31 160 0.06x 0.06 30.19 140
Slide 36: Guidance: FY11 & FY'12
Guidance: FY11 & FY’12 2009-10 2010-11 (Target) 2011-12 (Target) Crude oil production 3.57 mmt 3.70 MMT 3.76 MMT Natural gas production 2,415 mmscm 2,405 mmscm 2,633 mmscm Increase in Exploratory and Development Drilling Meterage Increase in Work Overs Enhanced Water Injection Endeavour to Enhance L
Slide 37: Conclusion
Conclusion Stable Operations, Looking for Growth Company with Good Operating Track Record Sound Financial Health Company with more than 5 Decades of E&P Expertise Large Prospective E&P Acreage Entry into Deepwater/Offshore Blocks as Operator Entry into discovered assets in Venezuela, Acquisition Thr
Slide 38: Thank You
Thank You ee \