Oil India Limited · NSE:OIL
Oil India — Investor Presentation (July 2017)
41 slides from Oil India's investor presentation, July 2017
Slide 1: Oil India Limited Investor Presentation – July 2017
Oil India Limited Investor Presentation – July 2017
Slide 2: Table of Contents
Table of Contents Company Overview Strategic Strengths Assets Overview Operating and Financial Performance Growth Strategy 2
Slide 3: Company Overview
staet stsat fates a Oil India Limited Overview
Slide 4: Oil India Ltd.: An Introduction
Oil India Ltd.: An Introduction Over 5 decades of presence in oil & gas sector Rich Heritage Owns and operates a fully-automated cross country crude oil pipeline Strong Parentage with GoI ownership of 66.13% Govt. of India Awarded ‘Navratna’ status in 2010 Integrated & fully Presence across Oil & Ga
Slide 5: Strong Parentage and Experienced Management Team
Strong Parentage and Experienced Management Team Strong Parentage of Govt. of India Board of Directors 2nd Largest Public Sector E&P company Best In-Class Management Team Utpal Bora Experience in diverse fields of Became a Public Sector Undertaking in 1981 Chairman & MD exploration management of GoI
Slide 6: High Standards of Corporate Governance
High Standards of Corporate Governance Present Composition of Board 5 Functional Directors (including C&MD) and 2 Government Nominee Director. Processes Meetings generally held at Company’s Registered/ Corporate Office. Meetings convened with appropriate advance notice. However, to address specific
Slide 7: Current Shareholding Pattern
Current Shareholding Pattern Corporate Bodies, 12.1 DII, 13.7 Listed on BSE & NSE GOI, 66.1 Others, 4.5 Number of shares* 75.66 crore FII, 3.6 % Dividend FY17 Key shareholders Shareholding Rs.14.25 /Share Government of India 66.13 Life Insurance Corporation of India 8.47 Share price (52 Week High /
Slide 8: Share Price Movement – Peer Comparison
Share Price Movement – Peer Comparison 500 450 Price Correction for 400 Bonus Issue 350 300 Price Correction for 250 Bonus Issue 200 150 100 OIL ONGC Share performance of OIL in line with peers 8
Slide 9: Oil India: Milestones and Track Record
Oil India: Milestones and Track Record IPO – Raised “Company of the Acquisitions in Rovuma Formed as a JV First time Intl. Credit Rating: Raised Rs.2,777 crore. Year Award” by Block in Mozambique with Burmah Oil Participation Moody's : ‘Baa2’ offshore FCB Listed in Stock Indian Chamber and License 6
Slide 10: Key Performance Highlights
Key Performance Highlights Acquisition of stakes in Russian Assets by consortium of OIL, IOC and BPRL: - 23.90% in CJSC Vankorneft ; 29.90% in TYNGD (Taas – Yuryakh) Arrested sustained fall in crude oil production over last 4 years Highest ever Natural Gas Production of 2.94 BCM, increase of 3.5% ov
Slide 11: Strategic Strengths
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Slide 12: Integrated and Diversified Oil & Gas Player
Integrated and Diversified Oil & Gas Player Non Conventional Exploration Production Transportation Downstream Energy Domestic: Crude oil Crude Oil Refining and Wind Energy 39 E&P blocks 41 installations 1,157 km marketing Capacity 136.3 International: 1,602 km pipeline; Over 6 26% equity MW Presence
Slide 13: Strong In-House Capabilities
Strong In-House Capabilities Infrastructure to Support E&P Activities Vertically Integrated E&P Operations One 2D and two 10 Logging Units 3D Seismic crew 24 Work-over Drilling 19 Drilling Rigs Rigs Seismic API Wireline (2D and 3D) Logging In-House Production and Storage Facilities Expertise Field D
Slide 14: Technology Induction
Technology Induction Use of advanced techniques to maintain production from ageing fields Deploys a wide array of IOR and EOR to achieve maximum recovery of oil reserves Introduced hydro-frac operations to produce tight sands Introduced radial drilling technology to improve productivity Introduction
Slide 15: Assets Overview
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Slide 16: Domestic Assets
Domestic Assets Non Area Blocks Operated Total Operated (SQKM) NELP 6 4 10 17,794 ASSAM +AP Pre-NELPJV - 2 2 121 AA-ONN-2010/2 40% PEL (Nom) 5 - 5 1,230 ASSAM +AP PML (Nom) 22 - 22 5,004 Total 33 6 39 24,149 Kharsang 40% RJ-ONN-2004/2 100% AAP-ON-94/1 41% RAJASTHAN WB-ONN-2005/4 25% AA-ONN-2010/3 40
Slide 17: International Assets
International Assets US Libya 25% Colorado 20% 60 sq.km Area 95/96 6,629sq.km (Sonatrach) Julesburg Basin Ghadames Basin Russia License 61 50% 4,991sq. km TAAS 10% 1,382sq. km JSC Vankor 8% 1,869sq.km Nigeria 17.5% 1,295sq.km OML 142 (Suntera) Sudan 10% 741 km Pipeline Venezuela 203sq.km Carabobo 1
Slide 18: Major Overseas Projects
Major Overseas Projects Project Carabobo, Venezuela Area 1 Rovuma, Mozambique Two blocks in Orinoco Heavy Oil OIL & OVL acquired 10% stake in Belt Jan. 2014 ~ 30 billion barrels of Oil in place Acquisition Cost for OIL - US$ from Project Carabobo 1,007 mn. Production started from Dec 2012 45-75 tcf
Slide 19: Major Overseas Projects (Contd...)
Major Overseas Projects (Contd...) Vankorneft, Russia Taas Yuryakh, Russia Acquired 23.9% stake in Oct 2016 Acquired 29.9% stake in Oct 2016 jointly with IOCL & BPRL jointly with IOCL & BPRL Acquisition Cost: US$ 2.02 Billion Acquisition Cost: US$ 1.121 Billion OIL’s share 33.5% OIL’s share 33.5% OI
Slide 20: Operating and Financial Highlights
Operating and Financial Highlights
Slide 21: Strong Operating Performance
Strong Operating Performance Crude Oil Production (MMT) Natural Gas Production (mmscm) 3.44 2,937 3.25 3.28 2,838 2,722 FY15 FY16 FY17 FY15 FY16 FY17 21
Slide 22: Large and Diversified Domestic Reserve Base
Large and Diversified Domestic Reserve Base Balance Recoverable Reserves Reserves Split by Type (2P) Natural Gas (MMTOE) Crude Oil (MMT) Crude, 39% 161 Gas, 124 61% 77 106 79 29 1P 2P 3P Consistent Reserve Replacement Ratio Over One 1.35 1.38 1.31 FY15 FY16 FY17 33 Years current production of O+OEG
Slide 23: Attractive Cost Structure
Attractive Cost Structure Finding & Development Cost (USD/BOE) CrudeOil Crude OilProduction Production Cost Cost(USD / bbl) (USD / bbl) 15.6 17.4 16.6 8.3 9.6 10.0 12.2 6.1 FY 15 FY 16 FY 17 5.9 Natural Gas Production Cost (USD/ MMBTU) 5.7 0.4 0.3 0.2 4.1 3.7 1.4 1.2 1.4 FY 15 FY 16 FY 17 FY 15 FY 1
Slide 24: Track Record of Delivering Strong Financial Performance
Track Record of Delivering Strong Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) and EBITDA Margins (%) 11,159 11,191 4,802 4,982 4,785 11,020 44% 45% 43% FY15 FY16 FY17 FY15 FY16 FY17 EBITDA EBITDA Margin PAT (Rs. Crore) and PAT (%) 2,510 2,302 23% 1,549 21% 14% FY15 FY16 FY17 Net Pro
Slide 25: EPS & Dividend
EPS & Dividend Earning Per Share (Rs.) Dividend Payment 31.32 28.72 1,202 1,121 962 19.32 FY15 FY16 FY17 FY15 FY16 FY17 Dividend Payout Ratio (% of PAT) 72% 48% 42% FY15 FY16 FY17 For FY17 Interim Dividend - Rs. 9.50/share, Final Dividend - Rs. 4.75/ share (recommended by Board) 25
Slide 26: Strong Balance Sheet
Strong Balance Sheet Net Worth (Rs. Crore) Book Value per Share (Rs.) 363 23,202 22,802 311 21,498 268 FY15 FY16 FY17 FY15 FY16 FY17 Cash and bank balance (Rs. Crore) 9,908 9,218 6,542 FY15 FY16 FY17 26
Slide 27: And Low Leverage
And Low Leverage Total Debt (Rs. Crore) Total Debt / Equity (%) 9,133 8,948 8,341 38.8% 40.0% 38.6% FY15 FY16 FY17 FY15 FY16 FY17 Net Debt/ EBITDA (x) 0.5 -0.1 -0.2 FY15 FY16 FY17 27
Slide 28: Contribution to Exchequer
Contribution to Exchequer Central Exchequer 1,531 (Rs.crore) 1,411 1,229 1,224 1,114 854 719 697 475 2014-15 2015-16 2016-17 Corporate Tax Cess Dividend & Others State Exchequer (Rs.crore) 2,448 1,280 1,268 542 593 564 2014-15 2015-16 2016-17 Royalty VAT & Others Royalty for 2016-17 includes payment
Slide 29: Government Policy and Outlook on Subsidy
Government Policy and Outlook on Subsidy Outlook on Subsidy Total Petroleum Subsidy Petrol Prices De-regulated in June 2010 76,285 (Rs. Crore) Diesel Prices De-regulated in October 2014 Direct Benefit Transfer Scheme for LPG 27,571 implemented effective Jan 1, 2015. subsidies 19,728 on Domestic LPG
Slide 30: Realized Price for Crude Oil & Natural Gas
Realized Price for Crude Oil & Natural Gas Crude Oil (US$/ bbl) Natural Gas (US$/ MMBTU) 84.3 5.05 4.66 47.1 46.4 47.4 47.4 3.82 45.3 3.06 2.50 2.48 FY15 FY16 FY17 1 Nov-14 Apr-15 Mar-16 Apr-16 Oct-16 Apr-17 Gross Realized Price Price Realized after Subsidy Govt. notified Gas Price 30
Slide 31: Growth Strategy
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Slide 32: Capex Plans
Capex Plans 2016-17 (Actual) : Rs.4,336 crore 2017-18 (Plan) : Rs.4,290 crore 10% 9% 9% 37% 4% 23% 29% 36% 21% 22% 2014-15 12% 26% 19% 29% 15% 3773 2015-16 10% 20% 19% 24% 27% 3622 Survey Exploratory Drilling Development Drilling Capital Equipment Overseas Projects 32
Slide 33: Production Guidance for FY'18
Production Guidance for FY’18 2017-18 (Target) Crude oil 3.33 MMT Natural gas 3,020 mmscm 35 33
Slide 34: Short Term Growth Perspective
Short Term Growth Perspective Ningru PML: • The PML, part of Assam & Assam-Arakan basin. • The PML was awaiting re-grant from 2003 due to absence of forest clearance. • Forest clearance recently obtained. • PML includes Kumchai oil field which has an estimated Oil-in-place (OIP) reserve of ~ 15 MMKL
Slide 35: Short Term Growth Perspective (contd..)
Short Term Growth Perspective (contd..) Extended Reach Drilling • Extended Reach Drilling planned in Baghjan field to produce oil and gas from the portion falling below Dibru Saikhowa National Park (DSNP) • Plan to drill seven ERD wells to extract oil from depth of about 3900-4000 meters • Expected
Slide 36: Long Term Growth Strategy
Long Term Growth Strategy OIL has aspiration to be an international E&P player with operations at scale in at least two geographical clusters outside India, significantly higher production, reserves and cash flows while being known globally for its capabilities to extract value from mature assets. 1
Slide 37: Strategies to Achieve 2030 Aspirations
Strategies to Achieve 2030 Aspirations Reimagine Main Producing Area development to maximise potential Step up exploration and development activities in select Indian basins Build international presence at scale in one or two geographic clusters Pursue selective, profitable diversification in the en
Slide 38: Positive Policy Environment
Positive Policy Environment Maximising domestic Oil & Gas production a strategic priority for Govt. Aim to reduce import dependence by 10% by 2022. Hydrocarbon Exploration Licencing Policy implemented in place of NELP National Data Repository to facilitate Open Acreage Offer NSP being undertaken for
Slide 39: Summing Up
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Slide 40: Conclusion
Conclusion 2nd Largest Public Sector E&P Company …With Strong Credit Metrics Steady and sustained growth Sound financial health Strong operating track record More than 5 decades of E&P expertise Spreading wings: NE – Pan India – Global Large prospective E&P acreage Pioneer in Pipeline Transportation
Slide 41: Thank You
Thank You © atacsisaiatzs a1) | Oil India Limited