Oil India Limited · NSE:OIL
Oil India — Investor Presentation (May 2024)
46 slides from Oil India's investor presentation, May 2024
Slide 1: Investor Presentation 2024
Conquering Newer Horizons Investor Presentation 2024 2024 0
Slide 2: Disclaimer
Disclaimer • This presentation is prepared by Oil India Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or i
Slide 3: Outline
01 Company Overview 02 Strategic Strengths 03 Assets Overview Outline Operating & Financial 04 Performance 05 Material Subsidiary 06 Growth Plans 07 ESG Highlights 2
Slide 4: Company Overview
01 Company Overview Outline 3
Slide 5: OIL has had a proud journey over the last 64 years
OIL has had a proud journey over the last 64 years International Vankorneft CPSE Credit rating & TAAS NRL 1889 1889 Maharatna Wholly owned Acquisition of Majority stake Digboi Digboi GoI enterprise Renewable Stake in in Refinery Status energy Russian Assets 1959 2009- 2012- 1981 2014 2016 2018 2021
Slide 6: Management team
Management team CMD & FUNCTIONAL DIRECTORS Experience in strategy formulation, business Dr. Ranjit Rath development, upstream asset management, Chairman & Managing Director application of geosciences & exploration geology Harish Madhav Experience in diverse field of Financial Director (Finance) Mana
Slide 7: Management team
Management team GOVERNMENT NOMINEE DIRECTORS Having vast experience of working Rohit Mathur in various capacities in different Ministries Joint Secretary, MOP&NG and Departments IFS 2015. Rich and diverse experience in George Thomas various Govt. Departments and dealing with Deputy Secretary, MOP&NG
Slide 8: FY 2023-24: A significant year for Oil India
FY 2023-24 : Growth driven by combination of External & A significant year for Oil India Internal Factors Significant milestones & positive market buzz OIL has significantly outperformed vs. benchmark Awarded Maharatna Status in August 2023 indices over the last two years with 3x growth Highest ever
Slide 9: Shareholding structure and Credit Rating
Shareholding structure and Credit Rating Shareholding Pattern Strong Credit Rating 56.66% Domestic 7.61% Long term - AAA Stable 4.93% Short term – A1+ Long term - AAA Stable 2.47% Short term – A1+ 2.47% International CPSE ETF 2.01% Kotak 1.14% Baa3 (Stable) Rest 22.71% Total 100.00% BBB - (Stable) A
Slide 10: Key performance highlights of FY-24
Key performance highlights of FY-24 Highest ever EBITDA Highest ever combined O+OEG 6.54 production 11,643 – Increase of 4.18% since last year MMTOE INR Crore (₹ 11,176.09 crore in FY23) – Increased from 6.356 MMTOE in FY 23 Profit after Tax Crude oil production 3.359 5,552 – Highest ever PAT in Q4
Slide 11: Strategic Strengths
01 02 Strategic Strengths Outline 10
Slide 12: Maharatna Pan-India Integrated Energy Company
Maharatna Pan-India Integrated Energy Company Domestic E&P International E&P Transportation Downstream Renewable energy Domestic Upstream International Crude Oil Refining & marketing Solar Power • 63 E&P blocks Upstream • 1,157 km Pipeline • 69.63% stake in • 14 MW in • ~64K sq km Acreage • Over 6 M
Slide 13: Strong E&P capabilities in-house
Strong E&P capabilities in-house Infrastructure to Support Vertically Integrated E&P Operations E&P Activities In-house Seismic Seismic API Drilling crews: (2D and 3D) • One 2D • One 3D Wireline Pipeline 10 Logging Units Logging • 6 in-house, • 4 Charter Hire In-House Expertise 28 Work-over Rigs • 1
Slide 14: OIL - a significant player across oil & gas value chain
OIL - a significant player across oil & gas value chain OIL Group Company ownership (%) Current Operations & Aspirations • 3 MMTPA to 9 MMTPA refinery capacity expansion with Refining & 1640 km of crude pipeline :₹ 28,000 crore NRL 69.63% • 2G Ethanol via ABRPL : ₹ 4,200 Crore Marketing • 360 KTPA P
Slide 15: Assets Overview
01 03 Assets Overview Outline 14
Slide 16: 58 operated blocks across India; acreage of ~59k sq km
58 operated blocks across India; acreage of ~59k sq km Rajasthan Mahanadi PML 2 Assam & AP OALP 5 OALP 3 PML 23 DSF 1 PEL 1 NELP 1 No. of Acreage OALP 12 Operating Blocks (Sq km) PML (Nom) 25 4,829 Nagaland OALP 1 PEL (Nom) 1 23 NELP 2 3609 Mizoram NELP 1 DSF 3 208 OALP 27 49895 Tripura Total 58 58,
Slide 17: Global portfolio of 10 E&P assets across 7 countries
Global portfolio of 10 E&P assets across 7 countries Russia Russia Venezuela Libya Russia JSC Vankorneft LLC TYNGD Carabobo (3.5%) Area 95/96 (25%) License-61 (50%) (8.0065%) (10.0165%) 383 km2 6,629 km2 4,991 km2 1,869 km2 1,424 km2 ❖ Presence in 7 Countries ❖ PI in 10 Projects ❖ Investment : 3 Bn
Slide 18: Major overseas projects
Major overseas projects Tass Yuryakh, Russia Vankorneft, Russia Area 1 Rovuma, Mozambique • Jointly acquired 29.9% with • Jointly acquired 23.9% with • OIL & OVL acquired 10% stake IOCL & BPRL IOCL and BPRL in Offshore Mozambique Area 1 • OIL’s Share 33.5% • OIL’s Share 33.5% • OIL’s investment: ~US
Slide 19: Operating & Financial Performance
01 02 03 Outline Operating & Financial 04 Performance 18
Slide 20: Strong Operating Performance
Strong Operating Performance Highest ever production in 2023-24 OIL has shown ~14% CAGR in Total Income in MMToE 6.36 6.54 5.93 6.06 5.61 3.18 3.18 2.80 3.05 2.64 3.13 2.96 3.01 3.18 3.36 2019-20 2020-21 2021-22 2022-23 2023-24 Oil Gas 19
Slide 21: Driver of exploration activities in India
Driver of exploration activities in India… ~10x … leading to increase 20905 ~40x in India's resource base ~40x & ~10x 14573.19489 13240.19489 growth in 11135.19489 OIL 2P (FY24) 876 1,980 6560 7240 7489 2D-3D 2,634 3,0953,985 3,358 5462 2,2212,574 2,0802,435 2,238 2,595 exploration 499745 742 resp.
Slide 22: Multifold increase in operating acreage in last 5 years
Multifold increase in operating acreage in last 5 years Acreage ('000 sq km) • ~6x increase in operating acreage after onset of HELP regime ~6.3x 62.9 • ~208 sq km of acreage 58.0 58.0 58.6 51.5 under Discovered Small Fields in early asset 54.11 50.1 monetization initiative 48.9 48.9 23.7 24.8 24.7
Slide 23: Reserves Base
Reserves Base 1P (MMBOE) 2P (MMBOE) 3P (MMBOE) 669 626 982 496 1005 1246 543 845 1270 936 564 282 643 871 645 1083 1111 214 215 310 876 501 1007 767 726 662 1084 1038 1,281 563 210 639 301 522 224 684 1126 376 87 100 245 400 68 173 291 76 131 155 Domestic Overseas Total Total Domestic Overseas Total
Slide 24: Sustained Strong Operating & Financial Performance
Sustained Strong Operating & Financial Performance 3.01 3.05 3.18 3.18 3.36 3.18 2.51 3.09 2.62 Crude Oil Production (MMT) Natural Gas Production (BCM) NRL Crude Throughput (MMT) FY 22 FY 23 FY24 31,154 41,758 37,646 Consolidated Total Income (₹ Cr.) 6,719 9,854 6,980 Profit after Tax (₹ Cr.) FY 22
Slide 25: Price realisation
Price realisation Crude Oil (US$/ bbl) Natural Gas (US$/ mmbtu) 95.47 7.34 83.03 6.50 78.96 53.25 55.12 49.89 2.09 FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 Price Realized Net Realization after Levies FY 22 FY 23 FY 24 24
Slide 26: Financial Performance
Financial Performance Revenue (₹ Crore) EBITDA (₹ Crore) & EBITDA Margin (%) 24,758 24,514 11,176 11,643 16,428 7,266 48% 45% 44% FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 PAT (₹ Crore) Earnings Per Share (₹) 6,810 62.80 5,552 51.20 3,887 35.85 FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 25
Slide 27: Valuation and Dividend Payout
Valuation and Dividend Payout Net Worth (₹ Crore) Book Value per Share (₹) 35,449 406.88 31,601 316.90 26,979 275.64 FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 Dividend (₹ Crore) Dividend Payout Ratio (% of PAT) 2,169 40% 1,708 32% 31% 1,545 FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 26
Slide 28: Healthy leverage
Healthy leverage Debt (₹ Crore) Debt / Equity (%) 11,636 11,341 38.9% 11,161 32.5% 25.7% FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 Consolidated Group Debt as on 31st March, 2024 - ₹ 23,640 crore Debt / Equity Ratio - 45% 27
Slide 29: Contribution to Exchequer
Contribution to Exchequer Central Exchequer (₹ Crore) State Exchequer (₹ Crore) Total Contribution FY24: ₹ 7,207 Crore. Total Contribution FY24: ₹ 4,212 Crore. 1,301 1,191 1,333 1,288 4,424 3,862 831 812 3,145 2,924 2,027 1,904 2,131 2,154 1,101 FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 Corporate Tax Cess
Slide 30: ~4x Value appreciation Return to Shareholders
~4x Value appreciation Return to Shareholders Performance of the Investment over the period Consistent growth in OIL’s share price along with steady dividends Y-o-Y Consistent Dividends Y-o-Y Value Growth per share in terms of Issue of Bonus Shares market price and dividend 2011-12 : 3 share for eve
Slide 31: Material Subsidiary
01 02 03 Outline 04 05 Material Subsidiary 30
Slide 32: State of the art refinery - NRL
State of the art refinery - NRL Distribution Infrastructure • Product Terminals at Numaligarh and Siliguri • OIL owned product pipeline. Credit Rating • CRISIL–AAA/Stable/A+ on Long/Short term bank facilities. ExpansionPlans • 3MMT Refinery in North-Eastern State of Assam • OIL’s Equity 69.63% • On
Slide 33: NRL with best-in-class performance
NRL with best-in-class performance Particulars FY24 FY23 FY22 Crude Throughput 2,510 3,091 2,624 (TMT) Distillate Yield (%) 86.54% 87.69% 85.69% Income from Operation 23,730 29,785 23,546 (Rs. Crore) EBITDA (₹. Crore) 3,396 5,319 5,172 PAT (₹. Crore) 2,160 3,703 3,562 Gross Refinery Margin 13.17 19.
Slide 34: Growth Plans
01 02 03 Outline 04 05 06 Growth Plans 33
Slide 35: Oil India's growth strategy
Oil India’s growth strategy E2E transformation at Star cement 1 2 3 4 Alternate Upstream Midstream Downstream Energy Mission 4+ in India Integrated gas grid in Aggressive push to Diversification into – 4 MMTPA crude NE via IGGL increase NRL Green Hydrogen – 5 BCMPA gas capacity CBG and additional Ve
Slide 36: Mission 4+
OIL has plans to ensure India’s Energy Security through Mission 4+ • Contributing ~10% of India’s total oil and 8% of gas production • More than 500 wells under production and 213 surface facilities Crude Oil Production (MMT) • Pioneer in execution of various IOR/EOR schemes 3.36 – Low Sanity Water
Slide 37: Large Capex Plans
Large Capex Plans Actual FY23: ~ ₹~5,534 Crore RE FY24: ~ ₹ 5,248 Crore Actual FY24: ₹ 5,907 Crore Plan FY25: ~ ₹ 6,900 Crore 10% 6% 9% 18% 20% 34% 30% 31% 21% 21% Survey ED DD CE Investments Survey ED DD CE Investments 36
Slide 38: OIL is well positioned for planned investments
OIL is well positioned for planned investments Strong cash & Healthy Sound debt margin fundamentals leverage ratio servicing capability • Strong EBIDTA and cash • Funding raised only for: • Significantly high interest flow with positive price – Mozambique, Russia coverage ratio environment and NRL c
Slide 39: ESG Highlights
01 02 03 Outline 04 05 06 07 ESG Highlights 38
Slide 40: OIL's ESG Vision Aligned with Nation
OIL’s ESG Vision Aligned with Nation • Evolve into a pioneering net-zero emissions energy company by 2040 & creation of Alternative Energy Portfolio • Set goal to increase share of gas in its portfolio (5 BCM+) & contribute to country’s vision of becoming a gas-based economy by increasing share of g
Slide 41: Environmental Risks and Mitigating Measures
Environmental Risks and Mitigating Measures Carbon Transition Physical Climate Risks Water Management • Identified CCA Measures and CER Measures • Seismic Vulnerability, • Periodic ground water analysis Innovation – Use of Investment in technologies for reduced flaring, • Subsidence Assessment carri
Slide 42: Social/Governance Risks and Mitigating Measures
Social/ Governance Risks and Mitigating Measures e Customer Relations Human Capital Demographic & Societal Trends • Data and Cyber Security – Data protection • Labour Relations – structured programs to • Identified major thrust areas for CSR namely Strategy, technology to secure customer data and im
Slide 43: CSR (Changing Life)
CSR (Changing Life) Promoting Art, Women Augmenting of Skill Environment Rural Infra Development Culture & heritage Empowerment Drinking Sustainable Promotion Education Healthcare and Sanitation Livelihood of Sports CSR Expenditure for FY24 - ₹ 123 Crore (2.21% of PAT) 42
Slide 44: To Summarize
To Summarize 2nd Largest Public Sector … With Strong Credit Metrics E&P Company Over 6 decades of E&P Expertise Steady and Sustained Output Growth State of the art Refining, Capacity augmentation from 3 to 9 MMTPA Strong Financials Aggressive Exploration Focus on Category 1 Basins Acquisition of dis
Slide 45: Investors' Contact Details
Investors’ Contact Details For Institutional For Investors & Analysts Retail Investors Shri S. Maharana Shri A. K. Sahoo Chief General Manager-F&A Company Secretary Email: smaharana@oilindia.in Email: investors@oilindia.in 44
Slide 46: Thank You!
Thank You! `