Mari Energies Limited · PSX:MARI
Mari Energies — Mari Petroleum Company — Investor Presentation (June 2019)
70 slides from Mari Energies's investor presentation, Jun 11, 2019
Slide 1: Corporate Briefing Session (June 11, 2019)
CORPORATE BRIEFING SESSION (June 11, 2019) Mari Petroleum Company Limited MARI PETROLEUM COMPANY LIMITED
Slide 2: Disclaimer
DISCLAIMER www.mpcl.com.pk During the course of this presentation we may make forward-looking statements regarding future events or the future performance of the Company. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific and risks
Slide 3: Briefing Outline
BRIEFING OUTLINE www.mpcl.com.pk 1. Overall Business Environment 2. Brief History & Profile of Mari Petroleum 3. MPCL Business Model 4. Production Profile 5. Exploration Activities 6. Mari Services Division (MSD) 7. Financial Performance 8. MPCL’s Strategy Re-Orientation 9. Awards and Recognitions 1
Slide 4: Overall Business Environment
www.mpcl.com.pk OVERALL BUSINESS ENVIRONMENT 4
Slide 5: Overall Business Environment
OVERALL BUSINESS ENVIRONMENT www.mpcl.com.pk Regulatory issues (only one bidding round since 2013) No significant increase in National oil and gas production Shift to imported LNG (impact on pipeline availability and pressure issues) High security costs especially in frontier regions CSR C
Slide 6: Brief History & Profile
www.mpcl.com.pk BRIEF HISTORY & PROFILE 6
Slide 7: Our History
OUR HISTORY www.mpcl.com.pk Mari Gas Field was discovered in 1957 by Esso Eastern Inc. of USA. In 1983, Fauji Foundation acquired Esso’s entire business in Pakistan. In 1984, Mari Gas Company Limited was incorporated with the following shareholding: Current Shareholding Fauji Foundation : 40%
Slide 8: Brief Profile
BRIEF PROFILE www.mpcl.com.pk 1. 2nd Largest Gas Producer in the Country; 157 Producing wells Custodian of Highest Remaining Gas Reserves at a Single Field 2. i.e. Mari Gas Field with 4.60 TCF Not even a single hour of gas supply interruption/suspension from Mari 3. Field for over the last 5 decades
Slide 9: Brief Profile
BRIEF PROFILE www.mpcl.com.pk Highest Number of ISO Certifications (for Quality, Environment, 8. Information Security, Occupational Health & Safety and CSR) 9. Declared Fastest Growing Company for last two consecutive years 10. Declared Best Company of the year for last three consecutive years Recog
Slide 10: Pictorial Depiction of MPCL
www.mpcl.com.pk PICTORIAL DEPICTION OF MPCL 10
Slide 11: MPCL Head Office Buildings
MPCL Head Office Buildings www.mpcl.com.pk 11 11
Slide 12: Aerial View of Mari Field, Sindh
Ariel View of Mari Field, Sindh www.mpcl.com.pk 14
Slide 13: Aerial View of Central Manifold - Mari Gas Field
www.mpcl.com.pk Aerial View of Central Manifold- Mari Gas Field 15
Slide 14: MPCL Colony at Mari Field
www.mpcl.com.pk MPCL Colony at Mari Field
Slide 15: Sujawal Gas & Condensate Field - Sindh
SUJAWAL GAS & CONDENSATE FIELD- SINDH www.mpcl.com.pk 17
Slide 16: Sujawal Gas & Condensate Field - Sindh
SUJAWAL GAS & CONDENSATE FIELD- SINDH www.mpcl.com.pk 18
Slide 17: Koonj Gas Field - Sukkur
KOONJ GAS FIELD- SUKKUR www.mpcl.com.pk 19
Slide 18: Zarghun Gas Field - Balochistan
ZARGHUN GAS FIELD- BALOCHISTAN www.mpcl.com.pk 18
Slide 19: Ghauri Oil Field - Punjab
GHAURI OIL FIELD - PUNJAB www.mpcl.com.pk Drilling at Dharian-1 Well 19
Slide 20: Karak Block - Punjab/KPK
KARAK BLOCK- PUNJAB/KPK www.mpcl.com.pk 20
Slide 21: MPCL's Business Model
MPCL’s BUSINESS MODEL www.mpcl.com.pk Aggressive Exploration More Funds for New Exploration Financial & Discoveries Operational Growth Benefits to Stakeholders Early Early Revenues Production 21
Slide 22: Is the Core Business at Risk?
www.mpcl.com.pk IS THE CORE BUSINESS AT RISK? 22
Slide 23: Is the Core Business of the Company at Risk?
Is the Core Business of the Company at Risk? www.mpcl.com.pk E&P Industry: According to the studies conducted by Exxon, BP etc., it is expected that renewable energy sources will take an increasing share of energy mix. However, it is also forecasted that Oil and Gas will still remain the world’s p
Slide 24: MPCL's Concessions and Working Interests
www.mpcl.com.pk MPCL’S CONCESSIONS AND WORKING INTERESTS 24 27
Slide 25: www.mpcl.com.pk
www.mpcl.com.pk Total Acreage (Operator) 21,834 sq km ; (Non-Operator) 10,807 sq km 25 28
Slide 26: MPCL Participation in Bidding Round 2018 for New Exploration Blocks
MPCL PARTICIPATION IN BIDDING ROUND 2018 FOR NEW EXPLORATION BLOCKS www.mpcl.com.pk Bids for 10 new Exploration Blocks opened on November 26, 2018. MPCL won the following 2 blocks: BLOCK LOCATION AREA Wali West Bannu, Tank, North & 1,610 sq. km South Waziristan Taung Jamshoro, Sindh 152 sq. km 2
Slide 27: Production Profile
www.mpcl.com.pk PRODUCTION PROFILE 27 30
Slide 28: Field Wise Current Production
FIELD WISE CURRENT PRODUCTION www.mpcl.com.pk Gas Oil Condensate Field/Block (MMSCFD) (BBLs/D) (BBLs/D) Mari D&P Lease 714 - 50 Zarghun D&P Lease 14.6 - 05 Halini - Karak Block 1.5 1,100 - Kalabagh - Karak Block 3.8 - 100 Ghauri Block - 250 - Sujawal D&P Lease 17.5 - 160 Koonj - Sukkur Block 0.4 - -
Slide 29: MPCL Customers and Their Allocation
MPCL CUSTOMERS AND THEIR ALLOCATION www.mpcl.com.pk S# CUSTOMERS Allocation (MMSCFD) 1. Engro Fertilizer Ltd 173 2. Fauji Fertilizer Company Ltd Mirpur Mathello (FFC III) 279.5 4. Fatima Fertilizer Company Ltd (FFCL) 110 5. Sui Southern Gas Company Ltd (SSGCL) 1.6 6. WAPDA – Guddu (HRL) 110 7. Found
Slide 30: Significant Exploration Activities
www.mpcl.com.pk SIGNIFICANT EXPLORATION ACTIVITIES 30 33
Slide 31: Significant Exploration Activities
SIGNIFICANT EXPLORATION ACTIVITIES www.mpcl.com.pk SUMMARY OF WELLS (2018-19) Wells Planned 12 (10 Exploratory & 2 Appraisals) + (18 HRL Development Wells) Wells Drilled 06 Operated: 04 Non-operated: 02 18 HRL Development Wells Drilling in Progress 03 Operated: 01 Non-operated: 02 Wells Delayed 02 (
Slide 32: HRL Phase-X Development Project (Mari Gas Field)
HRL Phase-X Development Project (Mari Gas Field) www.mpcl.com.pk Due to continuous production for the last 5 decades, production from HRL Reservoir was projected to decline from 2019 onwards. Hence, HRL Phase-X Development Project was conceived consisting of drilling of 19 development wells, lay
Slide 33: Seismic Activities
www.mpcl.com.pk SEISMIC ACTIVITIES 33 36
Slide 34: Seismic Data Acquisition
SEISMIC DATA ACQUISITION www.mpcl.com.pk The company is currently undertaking, directly and indirectly, the following seismic projects: Directly through MSU: • Acquisition of 2D data in Zarghun South-Block 28 (Balochistan). • Acquisition of 3D data in Bannu West Block (North Waziristan). Indirectly
Slide 35: Seismic Activities - Bannu West
SEISMIC ACTIVITES - BANNU WEST www.mpcl.com.pk 38
Slide 36: Seismic Activities - Bannu West
SEISMIC ACTIVITES - BANNU WEST www.mpcl.com.pk 39
Slide 37: Seismic Activities - Zarghun South, Balochistan
Zarghun South, Balochistan SEISMIC ACTIVITIES www.mpcl.com.pk 36 40
Slide 38: Zarghun South, Balochistan
Zarghun South, Balochistan www.mpcl.com.pk 36 41
Slide 39: Shale Gas
www.mpcl.com.pk SHALE GAS 39 42
Slide 40: Considering Shale Gas Exploration
www.mpcl.com.pk To supplement it’s CORE BUSINESS, the Company is considering to undertake activities with regard to exploration of Shale Gas 40
Slide 41: Mari Services Division
www.mpcl.com.pk MARI SERVICES DIVISION 41 44
Slide 42: Mari Services Division Capabilities
www.mpcl.com.pk The Company owns and operates a State of the Art Seismic Data Acquisition Unit, Seismic Processing Center and Drilling Unit 42
Slide 43: Mari Rigs
MARI RIGS www.mpcl.com.pk Rig Skytop (300 HP) Rig Mari-3 (2500 HP) Rig Mari-1 (1500 HP) Drilling Capacity 1,000 M 7,000 M 4,500 M 43
Slide 44: Mari Seismic Unit (MSU)
MARI SEISMIC UNIT (MSU) A Leading Pakistani Land 2D & 3D Seismic Data Acquisition Unit Mari Petroleum Company Limited 47
Slide 45: Mari Seismic Processing Center (MSPC)
MARI SEISMIC PROCESSING CENTER (MSPC) www.mpcl.com.pk 48
Slide 46: Financial Performance Nine Months to March 2019
www.mpcl.com.pk FINANCIAL PERFORMANCE NINE MONTHS TO MARCH 2019 (Comparison with the same period last year) 46 49
Slide 47: Nine Months Financial Performance
NINE MONTHS FINANCIAL PERFORMANCE (Comparison with the same period last year) www.mpcl.com.pk 9 Months 9 Months Indicators Jul 2018 to Jul 2017 to %∆ Mar 2019 Mar 2018 Gross Sales (Rs. in million) 86,994 72,368 +20% Net Sales (Rs. in million) 43,507 28,592 +52% Net Profit (Rs. in million) 16,809 10,
Slide 48: Financial Performance Over the Last Years
FINANCIAL PERFORMANCE – (OVER THE LAST 03 YEARS) 120,000 100,602 100,000 96,189 +13% 88,792 Gross Sales 80,000 Net Sales PKR (Million) Net Profit 60,000 40,676 40,000 +87% 28,175 21,713 20,000 15,374 6,051 9,136 +154% - 2015-16 2016-17 2017-18 Source: Audited Accounts of the Company
Slide 49: Top Ten Stocks on PSX
TOP TEN STOCKS ON PSX March 31, 2019 www.mpcl.com.pk S# Company Name Share Price (Rs) 1. Unilever Pakistan Foods Ltd 7,400 2. Nestle Pakistan Ltd 7,032 3. Rafhan Maize Products Ltd 7,045 4. Philip Morris (Pakistan) Ltd 4,000 5. Pakistan Tobacco Co Ltd 2,646 6. Colgate Palmolive (Pak) Ltd 2,000 7. Is
Slide 50: Value Addition to Shareholders' Net Worth
VALUE ADDITION TO SHAREHOLDERS’ NET WORTHwww.mpcl.com.pk FF, GoP & General Public OGDCL Total Holding (Shares) 97.02 Million 24.26 Million Total Investment (Rs) 294 Million 134 Million Current Worth of Holding (Rs) 107 Billion 27 Billion Yearly Dividend (approx.) 582 Million 146 Million TOTAL VALUE
Slide 51: MPCL's Strategy Re-Orientation
www.mpcl.com.pk MPCL’S STRATEGY RE-ORIENTATION 51 53
Slide 52: MPCL's Strategy Re-Orientation
MPCL’S STRATEGY RE-ORIENTATION www.mpcl.com.pk MPCL is strategically focused on value maximization through investments in lucrative domestic and international oil & gas value chain to secure long-term growth and higher profitability for the Company. Upstream Globally, MPCL is scouting for acquis
Slide 53: Health, Safety and Environment
www.mpcl.com.pk HEALTH, SAFETY AND ENVIRONMENT 53 55
Slide 54: Health, Safety and Environment
HEALTH, SAFETY AND ENVIRONMENT www.mpcl.com.pk TOTAL RECORDABLE CASE FREQUENCY (TRCF) Target (FY 2018-19) : 0.40 Actual (As of May 31, 2019) : 0.10 “Lowest in the history of the Company” 54 56
Slide 55: ISO Certifications
ISO CERTIFICATIONS www.mpcl.com.pk ISO 9001: 2015 - Quality Management System ISO 14001: 2015 - Environmental Management System OHSAS 18001: 2007 - Occupational Health and Safety Assessment Series ISO 27001: 2013 - Information Security Management System 57
Slide 56: Corporate Social Responsibility
www.mpcl.com.pk CORPORATE SOCIAL RESPONSIBILITY 56 58
Slide 57: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY www.mpcl.com.pk MPCL is focused on sustainable service delivery to the communities inhabiting the areas of its operations all across Pakistan. This is a priority area, we consider it to be our moral/social responsibility. The Company has contributed significantly
Slide 58: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY www.mpcl.com.pk MPCL Primary School, Dilwani, Balochistan Free Medical Camp at Daharki, Sindh 58 58 Karkan Primary School, Zarghun, Balochistan Free Medical Dispensary, Dilwani, Balochistan 60
Slide 59: Corporate Matters
www.mpcl.com.pk CORPORATE MATTERS 59 61
Slide 60: Divestment of GoP Shareholding
DIVESTMENT OF GOP SHAREHOLDING www.mpcl.com.pk GoP is in the process of divesting its remaining 18.39% shares in MPCL. GoP has to re-issue the Transfer Notice to FF and OGDCL as they have the first right of refusal. 62
Slide 61: Awards & Recognitions
www.mpcl.com.pk AWARDS & RECOGNITIONS 61 63
Slide 62: Awards and Recognitions
AWARDS AND RECOGNITIONS www.mpcl.com.pk MPCL has been included in the Top 25 “Overall Platinum Award” MPCL Annual Report 2017 was Companies on Pakistan Stock Exchange for awarded a Certificate of Merit the Year 2017. at the in the category of MPCL has been placed at No. 16 among “14th EFP Best Pract
Slide 63: Awards and Recognitions
AWARDS AND RECOGNITIONS www.mpcl.com.pk CEO of the Year 2017 “1st Prize for Best Employment MPCL won three prestigious CSR at Practices Awards th 6 Employer of the Year Award at at th 11 National Forum for Environment by Employers’ Federation of th 6 Employer of the Year Award Pakistan & Health (NFE
Slide 64: Awards and Recognitions
AWARDS AND RECOGNITIONS www.mpcl.com.pk 2nd Position (Fuel & Energy “Premier Award” MPCL Annual Report 2016 Sector) “Company of the Year” & Wins 2nd Runner-up Position at “Fastest Growing Company” in “SAARC Anniversary Award Best Corporate and Awards by Rawalpindi for Corporate Governance” by Sustai
Slide 65: Awards and Recognitions
AWARDS AND RECOGNITIONS www.mpcl.com.pk 1st Prize (Oil & Gas Sector) 1st Position for Best HRM 2nd Prize for Occupational for Best Management Practices Safety & Health Practices Practices at at at th 5 Employer of the Year 13th Best Practices Award rd 33 Corporate Excellence Awards 2017 on Occupatio
Slide 66: MPCL in the News
www.mpcl.com.pk MPCL IN THE NEWS 66 68
Slide 67: News clipping
Pakist: OBSERVER | Monday January 15, 2018 Naveen AnMAb KWAN ISLAMABAD Mari Petroleum Company (MPCL) has played an active role in alleviating the energy deficiency in the country, said Prime Minister Shahid Khaqan Abbasi. during the annual function of MPCL held in Islamabad, The honourable Prime Min
Slide 68: MPCL in the News
MPCL IN THE NEWS www.mpcl.com.pk 70
Slide 69: Mari Petroleum's profit soars 73.5% in Oct-Dec quarter
THE CAPRESS TH INE, LELAMABAD, PERIAIARY 23, 209% Mari Petroleum’s profit soars 73.5% in Oct-Dec quarter Net sales increase 50% to Rs8.68 billion @ OUR CORRESPONDENT RARACHY Mari Perrole Limited's profit soared 73.5% to Rs3.20 billion in the quarcer ended December ja, 2037 due to higher net sales an
Slide 70: Thank You
www.mpcl.com.pk Thank You 66
Mari Petroleum Company — Investor Presentation (June 2019) on 6ix