Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — FY2018 Earnings Presentation
32 slides from Hindustan Oil Exploration's earnings presentation, May 15, 2018
Slide 1: Investor Presentation
Investor Presentation 15th May 2018 TRANSFORMING THROUGH TALENT AND TECHNOLOGY
Slide 2: 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 3: Contents
Contents 1 Business Overview 2 Performance Highlights 3 Business Outlook 4 Operations Update HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 3
Slide 4: Business Overview
Contents 1 Business Overview HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 4
Slide 5: 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| 5
Slide 6: Quality Asset Portfolio
Quality Asset Portfolio ONSHORE: A AAP-ON-94/1; (O); PI 26.882% B AA/ONDSF/KHEREM/2016; (O); PI 40.0% C CB-ON-7; (O); PI 35.0% D North Balol ; (O); PI 25.0% E Asjol ; (O); PI 50.0% • Portfolio of discovered resources – all blocks with F Kharsang ; (O); PI 30.0%* discoveries producing / ready to be d
Slide 7: Strong Organisation
Strong Organisation • India’s first private E&P company with decades of experience operating onshore and offshore fields • Professional management with proven industry experience • Delivered leading HSE performance with strong focus on safe and sustainable operations • Superior technical capability
Slide 8: Focused Strategy
Focused Strategy ▪ Quickly monetise upside potential with existing infrastructure Grow ▪ Increase portfolio of assets to ensure continuous growth rate ▪ Identify and develop low-risk, short cash cycle development projects Strengthen ▪ Implement effective reservoir management to increase production &
Slide 9: Performance Highlights
Contents 2 Performance Highlights HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 9
Slide 10: Executing our Strategy – FY18
Executing our Strategy – FY 18 • Achieved debt-free balance sheet with optionality for self-funding growth commitments • Gross working capital ₹ 193 Crores includes ₹ 133 Crores cash and cash equivalent Turnaround • Revenue from operations increased to ₹ 48 Crores in FY 18 from ₹ 25 Crores in FY 17
Slide 11: Growth Strategy – Focus on North East
Growth Strategy – Focus on North East Expanding our footprint in North east • Announced the acquisition of Geopetrol International Inc. with N interests in multiple blocks including producing Kharsang • By this acquisition, HOEC will have 30% Participating Interest in Kharsang through Geopetrol, bot
Slide 12: Business Outlook
Contents 3 Business Outlook HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 12
Slide 13: Firing Up the Growth Engine
Firing Up the Growth Engine Oil/ Cond. (bbl/d) - Total Gas (boe/d) - Total Oil/ Cond. (bbl/d) - Net Forecast Gross Production > 15 kboped Gas (boe/d) - Net Net Production > 8 kboped FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 3- Year Growth Projects Pipeline • Production ramp-up to capacity in Diro
Slide 14: External Environment Indicating Tailwinds
External Environment Indicating Tailwinds 120 5.5 Historic Brent Price ($/bbl) GoI - Price of Domestic Gas ( $ / mmbtu) 110 5 100 4.5 90 80 4 70 3.5 60 3 50 40 2.5 30 2 20 Nov 14 - Apr 15 - Sep Oct 15 - Mar Apr 16 - Sep Oct 16 - Mar Apr 17 - Sep Oct 17 - Mar Apr 18 - Sep May-14 Nov-14 May-15 Nov-15
Slide 15: 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 16: Operations Update
Contents 4 Operations Update HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 16
Slide 17: H-MGPP commissioned in March'18
H-MGPP commissioned in March’18 • H-MGPP Commissioned in Mar-2018. Gas flowing to OIL Kusijan GGS through 12” and condensate to IOC Digboi refinery through 4” pipeline • Dirok gas sales ramp up ongoing – Achieved 30 mmscfd of gas and 736 bopd of condensate Project status production on 11th May 2018
Slide 18: Growth Opportunity: Prolific Dirok
Growth Opportunity: Prolific Dirok Upside Potential • Dirok field is endowed with Girujan, Tipam and Barail Formation • Third-Party Reserves audit by GCA in progress to be completed by May 2018 • Revised Field Development Plan targeting Dirok upside potential under preparation. • Environmental Clear
Slide 19: Current Focus: Increasing Production from PY-1
Current Focus: Increasing Production from PY-1 Significant resources exist in this fractured Being re-entry from existing wells, production Existing facilities can handle increase in granite basement reservoir ramp-up from Q2 FY 18-19 production without additional cost Planned Activities & Opportuni
Slide 20: 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. Q4 FY 17-18 (100%): 36.3 mmscf Wells : 2 wells under Production Asjol Reserves : 2P (100%): 0.6 mmbbls Reservoir :
Slide 21: B-80 Development (Mumbai High–DSF block)
B-80 Development (Mumbai High–DSF block) Discovered Resource Base • Estimated STOIP of 40 million barrels & GIIP of 44 bcf • Field Development plan (FDP) approved on 27 Dec 2017 • Field to produce about 5000 bopd of oil and 15 mmscfd of gas under Phase -1 • First oil expected to be in Q1 2020-21 Pla
Slide 22: 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 thoug
Slide 23: Kherem (Arunachal Pradesh)
Kherem (Arunachal Pradesh) • 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: 6’ x 18 KM ➢Two
Slide 24: Annexures
ANNEXURES
Slide 25: Statement of profit & loss FY 2017-18
Statement of profit & loss FY 2017-18 For the year ended PARTICULARS (₹ Crores) March 31, 2018 March 31, 2017 INCOME Revenue from operations 48.71 25.02 Other income 11.44 17.09 Total revenue 60.15 42.11 EXPENSES Expenses from producing oil and gas blocks 13.04 11.33 Decrease / (Increase) in stock o
Slide 26: Statement of Assets and Liabilities (Audited)
Statement of Assets and Liabilities (Audited) All figures are in ₹ crores ASSETS As at EQUITY AND LIABILITIES As at Mar 31,2018 Mar 31, 2017 Mar 31,2018 Mar 31, 2017 Non-current assets Shareholders’ funds Property, Plant and Equipment Equity share capital 130.51 130.51 (i) Oil and gas assets 262.94
Slide 27: Investment Multiples
Investment Multiples Block AAP-ON-94/1 PY-1 PY-3 N. Balol Asjol CB-ON-7 Royalty & Cess Nil (Licensee) 10% Nil (Licensee) 10% Nil (Licensee) Nil (Licensee) Cost Recovery limit 80% 100% 100% 80% 100% 60% Investment Multiple <1 0% 0% 0% 20% 0% 0% 1<1.5 10% 5% 5% 20% 10% 25% 1.5<2 25% 5% 5% 30% 20% 30%
Slide 28: DIROK: Delivered Results on fast-track mode through Innovation
DIROK: Delivered Results on fast-track mode through Innovation HINDUSTAN OIL EXPLORATION COMPANY LIMITED| 28
Slide 29: Company Overview
Company Overview Shareholding Pattern (more than 10 %) HDFC 10.79% 75.06% 14.15% (73,000+) Retail & Others AKGT Board of Directors Sunil Behari Mathur P.K. Borthakur Sharmila Amin Ashok Goel Rohit Rajgopal Dhoot P. Elango R. Jeevanandam Chairman Director Director Non-Executive Non-Executive Managing
Slide 30: Asset Portfolio (Production / Development)
Asset Portfolio (Production / Development) Block Name Operator Location Oil/Gas PI Partner(s) Oil/Gas Consumers Gas – GAIL; PY-1 HOEC Offshore Gas 100% Nil Condensate – CPCL CB-ON-7 HOEC Onshore Oil 35% Oil– IOCL North Balol HOEC Onshore Gas 25% GNRL Gas – GSPCL Asjol HOEC Onshore Oil 50% Oil – IOCL
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
Slide 32: Glossary
Glossary 2P - Proved + Probable reserves BCF - Billion Cubic Feet of Gas GGS - Gas Gathering Station M-GPP - Modular Gas Processing Plant MMbbls - Million Barrels of Oil MMSCFD - Million Standard Cubic Feet per Day MMSCMD - Million Standard Cubic Meter per Day STOIIP - Stock Tank Oil Initially In Pl
Hindustan Oil Exploration Company — FY2018 Earnings Presentation on 6ix