Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q1 FY2015-16 Earnings Presentation
34 slides from Hindustan Oil Exploration's earnings presentation, August 2015
Slide 1: Investor Presentation, August 2015
INVESTOR PRESENTATION, AUGUST 2015
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by HOEC (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall n
Slide 3: Contents
Contents 1 Company Overview 2 Asset Portfolio 3 Growth Strategy 4 Financial Highlights 5 HOEC Bardahl India Limited HINDUSTAN OIL EXPLORATION COMPANY LIMITED|3
Slide 4: Company Overview
Company Overview 1st Private Oil & Gas company in India 3 Decades of presence in Oil & Gas Business 7 Blocks (Production/Development stage) across India $500+ Million of Investments 80,000+ Shareholders Promoted by Late Shri H.T. Parekh HINDUSTAN OIL EXPLORATION COMPANY LIMITED|4
Slide 5: 25 Years in BSE Listing
25 Years in BSE Listing Signed PSC for PY3, PY1 and PY3 was shut-in Asjol block ENI becomes the promoter consequent to Commencement public offer, Reserves of Production holds 47.18% downgraded in from PY3 block PY1 1983-90 1994-97 1997-2005 2008 2008-10 2011-13 2014-Present Preferential allotment Co
Slide 6: HOEC Shareholding Pattern & Board Members (Non-Executive Directors)
HOEC Shareholding Pattern & Board Members (Non-Executive Directors) Shareholding Pattern ENI 47.18% HDFC 11.36% GIC 1.34% Retail/Others 40.12% (80,000+) 0% 10% 20% 30% 40% 50% % Holding Board of Directors (Non-Executive) Sunil Behari Mathur Guido Papetti Paolo Ceddia Sharmila Amin Chairman Director
Slide 7: Board Members (Executive Directors)
Board Members (Executive Directors) P ELANGO Managing Director • Over 28 years of experience in Upstream Oil & Gas Sector • Held several leadership roles in different areas of the business and is a recognized leader in the Indian industry • Earlier CEO of Cairn India, played a key role in building C
Slide 8: Technical Experts
Technical Experts Bhuwan Chandra Gariya Sagar N. Mehta EXPLORATION MANAGER HEAD-CAMBAY BUSINESS UNIT • Over 31 years of experience as a Petroleum • Over 27 years of experience in upstream E&P Geoscientist in exploration, appraisal, spanning entire life cycle from hydrocarbon reservoir, development,
Slide 9: Asset Portfolio
ASSET PORTFOLIO
Slide 10: Asset Map (Production/Development)
Asset Map (Production/Development) AAP-ON-94/1 North Balol Asjol ASSAM-ARAKAN CB-OS/1 CB-ON-7 CB-OS/1 CAMBAY PY-1 PY-3 CAUVERY HINDUSTAN OIL EXPLORATION COMPANY LIMITED|10
Slide 11: Asset Portfolio (Production/Development)
Asset Portfolio (Production/Development) Block Name Operator Location Oil/Gas PI Partner(s) PY-1 HOEC Offshore Gas 100% Nil CB-ON-7 HOEC Onshore Oil 35% North Balol HOEC Onshore Gas 25% Asjol HOEC Onshore Oil 50% AAP-ON-94/1 HOEC Onshore Gas 27% CB-OS/1 ONGC Offshore Oil 38% PY-3 HEPI Offshore Oil 2
Slide 12: Assam – AAP-ON-94/1 (Operator: HOEC, 27% PI)
Assam – AAP-ON-94/1 (Operator : HOEC, 27% PI) • ~$100 million of Exploration & PROSPECT MAP Investment Appraisal investment by JV • 3 Exploration, 2 Appraisal wells • Multiple Girujan Sands (18+) Reservoir • 6 Sands tested with gas flow • Opening 2 new gas sands • Plan of Development was POD approve
Slide 13: Assam to come on stream in next 18 months
Assam to come on stream in next 18 months • Procurement of Tangibles • Forest & Wildlife Clearance Commercial production • Re-entry and Completion of 3 – Plateau production of existing wells 20 mmscfd for 15 Exploration • Begin Construction of GGS, years, economic life of Pipelines and GPP Capex (10
Slide 14: Assam: Easy Access to Market
Assam : Easy Access to Market Gas to BCPL through existing pipeline • Existing infrastructure provides ready access to gas market. • Discussion on Gas Sales Agreement is in progress. • New pricing policy allows subsidy to private sector too. • Government determined price of $4.66/MMBTU on GCV basis
Slide 15: Assam: Revenue Doubles
Assam : Revenue Doubles Revenue (INR million) *Assuming existing Revenues constant HINDUSTAN OIL EXPLORATION COMPANY LIMITED|15
Slide 16: Assam - Summary
Assam - Summary Higher Revenues • Entitled to Higher share of revenue, PI in exploration being 40% to HOEC Cost carry of • Only $85 mn would be required for development as against $100 mn ~$100 million already incurred for exploration • No Cess and Royalty payable by Companies Attractive Payout • Pr
Slide 17: PY-1 (Operator: HOEC, 100% HOEC PI)
PY-1 (Operator : HOEC, 100% HOEC PI) Decline in production due to water cut First Gas • November 2009 • Over $400mn of Investment • 4 Development wells and an Cumulative Offshore Platform & Pipeline Investment • 55 mmscfd processing plant on 209 acres land • FY15 Production : 3 mmscfd Production & •
Slide 18: PY-1 – Undeveloped Resources to be accessed
PY-1 – Undeveloped Resources to be accessed Planned Activities: • Rig-less Coil tubing job to reduce water influx and improve production in 1 well • Rig-based work-overs later • Explore synergies with adjoining fields/block to optimize the operating cost for all stakeholders Opportunities: • Signifi
Slide 19: PY-3 (Operator: Hardy, 21% HOEC PI)
PY-3 (Operator : Hardy, 21% HOEC PI) • July 1997, with FPS & RIL’s KG Block First Oil subsea completion • Field shut-down since July 2011 • Last Production : 3,300 Current bbls/day PY-3 Status • Opportunity to develop field with optimized cost and appropriate Price Regime EAST COAST - CAUVERY BASIN
Slide 20: CB-OS/1 (Operator: ONGC, 38% HOEC PI)
CB-OS/1 (Operator : ONGC, 38% HOEC PI) Reserves • 2P (100%) - 11.35 MMBbls CB-OS/1 • Field is in the west of prolific Gandhar field of ONGC. • Block is located in inter tidal Salient Features transition zone • Expected Field life is 10 years with Peak Production of 8,000 Barrels per day. • Developme
Slide 21: Cambay Marginal Fields (Operator: HOEC)
Cambay Marginal Fields (Operator : HOEC) •Wells : 9 wells (2 Producing) North Balol CAMBAY BASIN North Balol •Reservoir : Balol, Babaguru & Kand Sands (HOEC PI : 25%) Asjol •FY15 Avg. Production (100%): 0.81 mmscfd •Net Revenue : INR 17 mn Cost Recovery CB-ON-7 •Opex : INR 3 mn 80% •Reserves : 2P (1
Slide 22: Leverage Expertise in Marginal Fields
Leverage Expertise in Marginal Fields Marginal Fields’ Contribution Future Opportunity Netback ($/boe) Block Particulars 37 • Acquire 3D Seismic Asjol 27 • Drill 2 Wells 16 • Work-over 1 well • Acquire 3D Seismic • Drill 2 Wells CB-ON-7 • Gas Monetization North Balol Asjol CB-ON-7 • Material balance
Slide 23: Growth Strategy
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Slide 24: Growth Strategy...
Growth Strategy... Deliver from low risk onshore assets in Assam and Gujarat to double the current revenue by Q4 Focus FY 2016-17 Low risk onshore Build a strong geo-technical team Build Talent & Deploy Technology • Revive offshore assets (when the price cycle turns) and access undeveloped resources
Slide 25: ...execution plan linked to our strategy
...execution plan linked to our strategy • Fast-tracked Assam Project to deliver first-gas by Q4 FY 16-17 Onshore • Initiated planning to leverage opportunities in our Marginal Fields Assets • 15+ new professionals joined on full-time/part-time basis since Team February 2015 strengthening technical
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 27: Statement of Profit & Loss
Statement of Profit & Loss Particulars Q1 FY 16 Q4 FY 15 FY 2015 FY 2014 All Figures are in INR MM Revenue from Operations 93 74 404 569 Other Income 13 15 75 58 Revenue declined in FY15 Total Revenue 106 89 479 627 due to reduction in production and price. Operating, G &A and Other 51 69 304 347
Slide 28: Balance Sheet
Balance Sheet All Figures are in INR MM Assets Equity & Liabilities Description FY 2015 FY 2014 Description FY 2015 FY 2014 Fixed assets: Share capital 1,305 1,305 - Land and Buildings 80 83 Reserves and surplus 1,414 3,980 - Work-In-Progress – Assam 1,176 1,134 Long-term borrowings - 7,017 - Produc
Slide 29: Financial Summary (as on 30th June, 2015)
Financial Summary (as on 30th June, 2015) 1 Debt Free Balance Sheet 2 Operating Revenue to meet OPEX & leave surplus 3 ICRA BBB+ (Stable) Rating for INR 100 Crore long term proposed debt 4 Strong working capital position : INR 131 Crore* * Excluding ENI Group Payables (30/6/15)- INR 27.2 crores HIND
Slide 30: HOEC Bardahl (HBIL): Renewed Focus on wholly-owned Subsidiary
HOEC Bardahl (HBIL) : Renewed Focus on wholly-owned Subsidiary
Slide 31: Exclusive reseller of automotive additive products of Bardahl
Exclusive reseller of automotive additive products of Bardahl HBIL is an exclusive reseller of automobile additive products of Bardahl, USA Bardahl USA is a 79-year old lubricants and additives company with sales in 90 countries * HINDUSTAN OIL EXPLORATION COMPANY LIMITED|31
Slide 32: Significant Potential to Grow this Business
Significant Potential to Grow this Business GROWTH STRATEGY FINANCIAL SUMMARY All Figures are in INR MM Particulars Q1 FY 2016 FY 2015 FY 2014 Volumes (‘000 Litre) 60 317 349 Total Revenue (INR million) 39 197 202 Total Cost 37 176 187 PBT 2 21 15 Profit After Tax 2 14 11 HINDUSTAN OIL EXPLORATION C
Slide 33: Glossary
Glossary 2P - Proved + Probable reserves BCF - Billion Cubic Feet of Gas GGS - Gas Gathering Station GPP - Gas Processing Plant Kbbls - Thousand Barrels of Oil MMbbls - Million Barrels of Oil PI - Participating Interest PSC - Production Sharing Contract WIP - Work-in-Progress HINDUSTAN OIL EXPLORATI
Slide 34: Contact Information
Contact Information For further information, please contact: Company : Investor Relations Advisors : HOEC Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L67190MH1990PLC056009 CIN: U74900MH2014PTC259212 Parvinder Nogi Gaurang Vasani/ Pooja Dokania parvinder.nogi@hoec.com vgaurang@stellar-ir.com/ dpooja@stel
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