Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q3 FY2019 Earnings Presentation
31 slides from Hindustan Oil Exploration's earnings presentation, Jan 21, 2019
Slide 1: Cover letter to stock exchanges
Hindustan Oil Exploration Company Limited ‘Lakshmi Chambers’, 192, St. Mary’s Road, Alwarpet, Chennai - 600 018. INDIA. : 91 (044) 66229000 ● Fax: 91 (044) 66229011 / 66229012 E-mail: contact@hoec.com ● Website: www.hoec.com CIN: L11100GJ1996PLC029880 January 21, 2019 By Online The Listing Departmen
Slide 2: Investor Presentation
Investor Presentation 22nd Jan 2019 TRANSFORMING THROUGH TALENT AND TECHNOLOGY
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by HOEC (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis o
Slide 4: Contents
Contents 1 Q3 FY 19 Performance Highlights 2 Focus Areas & Priorities 3 Business Outlook HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 3
Slide 5: Q3 FY 19 Performance Highlights
Q3 FY 19 Performance Highlights Maintain Strong ❑ Continue to maintain debt free balance sheet and low cost operating model Financial ❑ Gross working capital ₹ 166 Crores includes ₹ 107 Crores cash and cash equivalent Foundation ❑ Revenue from operations increased to ₹ 66 Crores from ₹ 64 Crores in
Slide 6: Focus areas and priorities
Focus areas and priorities • Development of block B-80 – Deliver ‘first oil’ by Q1 FY 2020-21 Deliver • Development of block Kherem Development • Work with other JV partners and regulators to revive PY-3 Projects Focus Exploit • Phase – II development of Dirok Additional • Development of additional
Slide 7: B-80 development overview
B-80 development overview 1 FDP involves drilling of two wells and process by MOPU 2 Marketing and pricing freedom Evacuating Gas/Oil through existing 3 ONGC lines 5000 bopd Target: & 15 mmscfd in Phase - I 50% PI Q1 FY 20-21 HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 6
Slide 8: B-80 current status
B-80 current status Environmental Clearance • EC applied for and TOR approved on 21-Dec 2017 • EIA prepared for submission by Jan 2019 Drilling • Identifying and securing tangibles for two wells programme in FY 2019-20 • Evaluating cost-effective drilling options Subsea Pipelines • IOGPT- ONGC compl
Slide 9: Dirok Phase – II development
Dirok Phase – II development ❑ Dirok block endowed with prolific Tipam, Barail and Girujan formation ❑ Revised FDP envisages - 4 development wells - Expansion of Hollong Modular Gas Processing Plant - Laying of 35 KM long pipeline upto Duliajan - Production to increase from 35 MMSCFD to 55 MMSCFD ❑
Slide 10: Kharsang Development plan and Updates
Kharsang Development plan and Updates ❑ Revised FDP (RFDP) envisages drilling of additional shallow development wells ❑ Phase – I of Revised FDP envisages - 18 development wells – includes one well which drills into deeper sands - Production expected to increase from the current levels ❑ RFDP approv
Slide 11: Kharsang Additional Appraisal Potential
Kharsang Additional Appraisal Potential Significant deeper potential including Gas potential in Lower Girujan and Tipam formations to be appraised HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 10
Slide 12: Value Proposition
Value Proposition Quality Asset Portfolio Strong Organisation Focused Strategy Uniquely placed to combine a quality asset portfolio with a strong organisation through a focused strategy to deliver superior returns HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 11
Slide 13: Quality Asset Portfolio
Quality Asset Portfolio A AAP-ON-94/1; (O); PI 26.882% B AA/ONDSF/KHEREM/2016; (O); PI 40.0% • Portfolio of discovered resources – Nine blocks with discoveries producing / ready to be developed • Diverse geographical footprint - Presence in 4 out of 7 producing basins in India • Balanced portfolio –
Slide 14: Firing Up the Growth Engine
Firing Up the Growth Engine Oil/ Cond. (bbl/d) - Total Gross Production > 15,000 boepd Gas (boe/d) - Total Forecast Net Production > 8,000 boepd Oil/ Cond. (bbl/d) - Net Gas (boe/d) - Net Gross Production > 10,000 boepd Net Production > 5,300 boepd Gross Production - 7361 boepd Net Production - 3297
Slide 15: Market outlook
Market outlook Historic Brent price($/bbl) GoI price of Domestic Gas ($/mmbtu) 120 5.5 5.05 110 5 4.66 100 90 4.5 80 3.82 4 70 3.5 3.36 60 3.06 3.06 50 2.89 3 40 2.5 2.48 2.5 30 20 2 10 0 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 • Oil & gas prices recovering from histori
Slide 16: Business Outlook - Summary
Business Outlook - Summary 1 Unique value proposition - Quality asset portfolio with strong organisational capabilities 2 Company established on firm financial foundation with growing cash flow from operations 3 Management committed to growth through executing focused strategy 4 Robust pipeline of l
Slide 17: ANNEXURES
ANNEXURES
Slide 18: Statement of profit & loss (Un-Audited)
Statement of profit & loss (Un- Audited) For the Quarter ended PARTICULARS (₹ Crores) Dec 31, 2018 Sep 30, 2018 INCOME Revenue from operations 66.04 64.38 Other income 2.74 2.10 Total revenue 68.78 66.48 EXPENSES Expenses from producing oil and gas blocks 7.81 7.10 Royalty, Cess, NCCD 8.56 2.07 Decr
Slide 19: Statement of Assets and Liabilities (Un-Audited)
Statement of Assets and Liabilities (Un- Audited) ASSETS As at ₹ crores EQUITY AND LIABILITIES As at ₹ crores Dec 31,2018 Mar 31, 2018 Dec 31, 2018 Mar 31, 2018 Non-current assets Property, Plant and Equipment Shareholders’ funds (i) Oil and gas assets 341.06 262.94 Equity share capital 130.51 130.5
Slide 20: GoI Policy on Royalty & Cess
GoI Policy on Royalty & Cess Previously After GoI Policy on Royalty & Cess Royalty & Cess Royalty & Cess Paid 100% by Licensee and not cost To be shared by JV parties in ratio of Revenue recoverable Revenue their PI and cost recoverable as contract costs Contract Costs Contract Costs - - Past Explor
Slide 21: Investment Multiples
Investment Multiples Block AAP-ON-94/1 PY-1 PY-3 N. Balol Asjol CB-ON-7 Kharsang Cost Recovery limit 80% 100% 100% 80% 100% 60% 100% Investment Multiple <1 0% 0% 0% 20% 0% 0% 5% 1<1.5 10% 5% 5% 20% 10% 25% 5% 1.5<2 25% 5% 5% 30% 20% 30% 10% 2<2.5 35% 50% 50% 50% 30% 35% 15% 2.5<3 45% 50% 50% 50% 40%
Slide 22: RSC Parameters
RSC Parameters Block B-80 Kherem AA-ONHP-2017/19 Government Share of Revenue – LRP 12% 21% 22% Government Share of Revenue - HRP 55% 99% 99% 10% for crude oil, 12.5% for crude oil and 12.5% for crude oil and Royalty condensate and Natural condensate; condensate; Gas 10% for natural gas 10% for natur
Slide 23: DIROK: Delivered Results on fast-track mode through Innovation
DIROK: Delivered Results on fast-track mode through Innovation HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 22
Slide 24: Upcoming Natural Gas Grid in North - East
Upcoming Natural Gas Grid in North - East North Eastern Gas/Oil fields North Eastern gas fields of Dirok, Kharsang and Kherem indirectly connected to Indradhanush through Numaligarh Pipeline envisaged as part of NE gas grid Existing DNPL pipeline Margherita Gas pipeline to be laid by Dirok JV • Nort
Slide 25: Major Natural Gas Consumers in Assam
Major Natural Gas Consumers in Assam Company Name Core business AGCL Gas transporter that serves 38- tea estates, 900 commercial establishments and about 27,500 North – East natural gas grid domestic consumers (Indradhanush) connecting all seven NE Manufactures Petrochemicals like Methanol and state
Slide 26: Kherem (Arunachal Pradesh – DSF Block)
Kherem (Arunachal Pradesh – DSF Block) • Block Area: 16.45 Sq. Km. • Drilled Wells: 3 • Tested Production: ➢Oil 402 bopd ➢Gas not measured • Discovered Resources: DSF Data HOEC Internal Resources Million BBLs Million BBLs STOIIP 3 10.27 GIIP (BCF) 17 54.19 Bordumsa OCS N • Reservoir Properties: ➢Two
Slide 27: PY3 - Status
PY3 - Status • PY-3 field was shut-in on 31 July 2011 when it was producing 3000+ bopd without any sub- surface issues • HOEC has 21% stake in PY-3 operates PY-1 Gas field with an offshore platform and onshore processing facilities close to PY-3 field • Integration of PY-1 and PY-3 facilities though
Slide 28: Cambay Marginal Fields
Cambay Marginal Fields North Wells: 2 wells under Production Reserves : 2P (100%): 6.79 BCF Balol Reservoir : Balol, Babaguru & Kand Sands Potential for additional wells (PI: 25%) Prod. Q3 FY 18-19 (100%): 38.36 mmscf Wells : 2 wells under Production Asjol Reserves : 2P (100%): 0.6 mmbbls Reservoir
Slide 29: Company Overview
Company Overview Shareholding Pattern (more than 10 %) HDFC 10.79% 75.06% 14.15% (69,000+) Retail & Others AKGT Board of Directors Sunil Behari Mathur P. K. Borthakur Sharmila Amin Ashok Goel Rohit Rajgopal Dhoot P. Elango R. Jeevanandam Non-Executive Non-Executive Non-Executive Non-Executive Non-Ex
Slide 30: Asset Portfolio (Production / Development)
Asset Portfolio (Production / Development) Block Name Operator Location Oil/Gas PI Partner(s) Oil/Gas Consumers Gas – OIL India; Dirok HOEC Onshore Gas 27% Condensate – IOCL Gas – GAIL; PY-1 HOEC Offshore Gas 100% Nil Condensate – CPCL CB-ON-7 HOEC Onshore Oil 35% Oil– IOCL North Balol HOEC Onshore
Slide 31: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Hindustan Oil Exploration Company Ltd. Stellar IR Advisors Pvt. Ltd. CIN: L11100GJ1996PLC029880 CIN: U74900MH2014PTC259212 G. Josephin Daisy Gaurang Vasani/ Vikash Verma jdaisy@hoec.com vgaurang@stellar-ir.com/ vikash.v
Hindustan Oil Exploration Company — Q3 FY2019 Earnings Presentation on 6ix