Oil India Limited · NSE:OIL
Oil India — Q3 FY2014 Earnings Presentation
33 slides from Oil India's earnings presentation, March 2014
Slide 1: Oil India Limited Presentation
Oil India Limited Presentation March, 2014 Strictly Private and Confidential
Slide 2: Oil India: Brief Overview
Oil India: Brief Overview Independent India’s first commercial oil discoveries, with the Rich Heritage first one being made in 1953 Presence across Oil & Gas Value Chain (E&P, Transportation Integrated O&G Player and Downstream) World Class Infrastructure to support growth Domestic acreage: 86,194 s
Slide 3: OIL Shareholding Structure
OIL Shareholding Structure Others 15.1% DII 6.9% Listed on BSE / NSE FII 9.6% Number of shares: 601.14 mn GOI 68.4% Key shareholders % Shareholding Dividend FY13 Dividend/Share: Rs.30 Indian Oil Corporation 4.45% Bharat Petroleum Corporation 2.23% Hindustan Petroleum Corporation 2.23% Share price (5
Slide 4: Evolution and Key Milestones
Evolution and Key Milestones OIL enters the field of installation, LPG plant set- Entered into a MoU "Company of the year" among all commissioning and maintenance up using Turbo with IOCL for Navratna and Miniratna companies at of Crude oil pipelines Expander pursuing overseas the PSE Excellence Awa
Slide 5: Presence Across Value Chain
Presence Across Value Chain Exploration Production Transportation Downstream Domestic: 56 E&P blocks 50 years of experience Crude Oil Refining & Marketing (including 1 CBM Block) Petroleum Products Advanced recovery – 1,157 km pipeline International techniques to maximize ~6MMT capacity – 26% equity
Slide 6: Our Vision
Our Vision Fastest Growing Energy Company with Highest Profitability Delight Customers with Quality Products and Services at Competitive Prices Team, Committed to Honesty, Integrity, Transparency and Mutual Trust creating Employee Pride Fully Committed to Safety, Health and Environment Learning Orga
Slide 7: Strategic Plan 2020-21
Strategic Plan 2020-21 Growth Maintain & Enhance Reserves & Production from Current Fields Accelerated Exploration Initiatives Inorganic Growth (India and Overseas) 2012 Vertical Integration Along the Oil & Gas Value Chain 2020 Selectively Diversify in Alternative Energy Diversify into Unconventiona
Slide 8: Robust Demand Outlook
Robust Demand Outlook Steady Growth in Domestic Energy Consumption Energy Sources Driven by India’s Economic Growth Story (mmtoe) (%) Energy Sources—India 563 512 535 484 Nuclear & 447 420 367 390 Hydro Renew ables 345 5% 3% Natural Gas 9% Coal 53% Crude Oil 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 9: Domestic Asset Overview
Domestic Asset Overview Significant India Presence in Regions with Proven Commercial Production or Known Accumulation of Hydrocarbons Blocks Op N/Op Total AA-ONN-2010/2 40% NELP 12 15 27 Pre-NELPJV - 2 2 AA-ONN-2005/1 30% ASSAM +AP PEL (Nom) 5 - 6 ASSAM +AP AA-ONN-2009/4 50% PML 21 - 21 CBM - 1 1 AA
Slide 10: International Asset Overview
International Asset Overview Dominant International Footprint with Balanced Presence in Exploration Acreages & Producing Properties US 288 sqkm Colorado LIBYA 20% 25% (Sonatrach) Julesburg Basin Area 95/96 6,629sq.km SUDAN Pipeline 741 km 10% NIGERIA 17.5% (Summit) 2,095sq.km OPL 205 Bangladesh SS-0
Slide 11: Major Projects
Major Projects Block Shakthi Mizoram Gulf of Mannar KG Basin Project Carabobo MZ-ONN-2004/1 CY-OSN-2009/2 KG-ONN-2004/1 ( (Onshore Gabon, (Onshore, Venezuela) West Africa) (NELP-VI) ( NELP-VIII) – NELP-VI) Two blocks (383 Area: 3,761.65 Km² Area: 3,213 Sq. Km Area: 1,621 Sq. Km Area: 549 Sq. Km sq.
Slide 12: Overseas acquisitions – Focus and Available Resources
Overseas acquisitions – Focus and Available Resources Focus for Overseas acquisitions Available Resources Dedicated Multifunctional Team pursuing Balanced overseas portfolio M&A opportunities Acquire producing/development Utilising Expertise of International M&A /discovered blocks Advisers and Techn
Slide 13: International Acquisition Strategy
International Acquisition Strategy International Strategy International Partnerships and Alliances Prepared by International consultants and adopted by Board Implement its acquisition strategy utilizing joint ventures with other leading players in the industry Seek to acquire exploration acreages /
Slide 14: Significant Reserve Base
Significant Reserve Base 1P Reserves represent: 10 Years current production of Crude Oil 11 Years current production of Natural Gas 10 Years current production of O+OEG Total Reserves (1) Proved and Developed Reserves – Split by Type (mmboe) Proved developed reserves of approximately 261 mn barrels
Slide 15: Excellent Oil and Gas Infrastructure
Excellent Oil and Gas Infrastructure Infrastructure to Support E&P Activities Production and Storage Facilities One 2D and Six 70 Production Two 3D Seismic Logging Trucks Installations crew 14 Drillings 5,000km O&G ~150k KL 14 W/over Rigs Rigs Pipelines Crude Storage In-house Expertise and Integrati
Slide 16: Presence Across Value Chain
Presence Across Value Chain Drilling Seismic API Wireline (2D and 3D) Logging In-House Expertise Field Transportation Development IOR/EOR Production Field/Reservoir Management OIL is a fully self-serviced E&P company 16
Slide 17: Downstream Operations
Downstream Operations OIL intends to continue an active strategy of vertical integration into downstream sectors such as refining, processing, distribution and retailing, cracking and fractionation of gas This vertical integration strategy is aimed at to achieve following objectives – Diversificatio
Slide 18: Strong Government Linkage
Strong Government Linkage Government Owned Enterprise with GOI holding 68.43%. Continued government support evidenced by awarding “Navratna” status to the company making it more autonomous. 2nd Largest Public Sector E&P company Management Independence Navratna company: Board fully empowered to take
Slide 19: Plan outlay expenditure
Plan outlay expenditure Rs/crore 2890 2050 1743 1632 1557 1210 FY08 FY09 FY10 FY 11 FY 12 FY 13 19
Slide 20: Significant Investment Lined Up
Significant Investment Lined Up Annual Plan 2013–14: Rs.3,581 crore XII 5year Plan: Rs.19,003 crore Investments Survey Overseas 1% 12% 17% Capital Equipment 17% Exploration 32% Development 21% Exploratory Drilling Development Drilling No. of well 32 No. of well 38 21 19 FY13 FY14 FY13 FY14 Substanti
Slide 21: Operating Performance
Operating Performance eer
Slide 22: Crude Oil and Natural Gas Production
Crude Oil and Natural Gas Production Crude Oil Production Natural Gas Production (in mm bbl) (in mm scm) 2,633 2,639 27.8 26.0 26.4 2,352 2,002 19.4 FY11 FY12 FY 13 9M FY14 FY11 FY12 FY 13 9M FY14 22
Slide 23: Attractive Cost Structure
Attractive Cost Structure OIL has the Advantage of Low Finding and Development Costs OIL's integrated oil and gas infrastructure enables the company to manage costs efficiently by optimizing manpower costs, using in- house services, adapting cost-saving technology, effectively using geological data
Slide 24: Natural Gas Pricing
Natural Gas Pricing Natural Gas Price at USD 4.2/mmbtu for 10000 Cal (inclusive of royalty) was last approved in May,2010. OIL’s cost of natural Gas production is around USD 3.06/mmbtu. Cost of exploration and Development in NELP block is much higher. To make Natural Gas production attractive, there
Slide 25: India Gas Price Evolution
India Gas Price Evolution Gas Pricing Evolution 2004 2007 May 2010 June 2010 Aug 2010 Dec 2010 2011 4QFY12 2012 PMT price KG landfall APM price US$4.8–5.3/ GEECL – ONGC and Ashok Chawla report Essar to charge Ranagrajan Committee raised from price of raised from mmbtu for US$6.8/ Oil India – recomme
Slide 26: Sharing of Subsidy by Upstream Companies
Sharing of Subsidy by Upstream Companies Rs. in crore % Sharing Rs. In cr. % Sharing 2010–11 2011-12 2012-13 9M 13-14 2010–11 2011-12 2012-13 9M 13-14 ONGC 24893 44,465 49,421 40,182 ONGC 82% 81% 81% 84% OIL 3293 7,352 7892 6,389 OIL 11% 13% 14% 13% GAIL 2111 3,183 2687 1,400 GAIL 7% 6% 5% 3% Total
Slide 27: Financial Performance
Financial Performance 26
Slide 28: Growing Revenue and Profit
Growing Revenue and Profit Revenue EBITDA (Rs.crore) (Rs.crore) 5,996 6,123 11,280 11,456 5,145 9,194 8,686 4,577 FY11 FY12 FY13 9M FY14 FY11 FY12 FY 13 9M FY14 Net Profit Dividend Payout Ratio (Rs.crore) (As a % of Profit) 50% 2,888 3,447 3,589 31% 31% 33% 2,416 FY10 FY11 FY12 FY13 FY11 FY12 FY 13
Slide 29: Leverage Remains Low
Leverage Remains Low Earnings Per Share Book Value Per Share (in Rs.) (in Rs.) 360 295 320 60 260 57 48 40 FY11 FY12 FY13 9M FY14 FY11 FY12 FY13 9M FY14 Net Worth 21615 19212 17721 15602 FY11 FY12 FY13 9M FY14 Source: Company financials 28
Slide 30: Awards and Accolades
Awards and Accolades OIL was awarded the prestigious BUSINESS LEADERSHIP AWARD in OIL & GAS SECTOR by NDTV Profit on 7th January 2012. Oil & Gas Transportation Company of the Year Award at the Petrofed Oil & Gas Industry awards for the year 2010-11 PSU 360 Degree Growth award for 2011 from Dalal Str
Slide 31: Awards and Accolades
Awards and Accolades OIL was awarded the prestigious BUSINESS LEADERSHIP AWARD in OIL & GAS SECTOR by NDTV Profit on 7th January 2012. E&P Company of the Year Award at the Petrofed Oil & Gas Industry awards for the year 2010-11 First Prize for Oil Industry Safety Award in Oil & Gas Assets (Onshore)
Slide 32: Conclusion
Conclusion Steady and sustained Growth Sound Financial Health Strong operating track record More than 5 decades of E&P expertise Spreading its wings: NE - Pan India - Global Large prospective E&P acreage Pioneer in Pipeline transportation Entry into Offshore/ Deep Water Blocks Entry into discovered
Slide 33: Thank You
° Thank You