Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q3 FY2019-20 Earnings Presentation
30 slides from Hindustan Oil Exploration's earnings presentation, Feb 17, 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION 17 February 2 0 2 0 T R A N S F O R M I N G T H R O U G H T A L E N T AND T E C H N O L OG Y 1 | HINDUSTAN OIL EXPLORATION COMPANY LIMITED
Slide 2: Safe Harbour
SA F E HARBOUR Investor presentation Q3 2019-20 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 securiti
Slide 3: Contents
CO N T E N TS Investor presentation Q3 2019-20 1 Q3 FY 19-20 Performance Highlights 2 Focus Areas & Priorities 3 Business Outlook 02 | H I N D U S T A N OIL E X P L O R A TI ON C O M P A N Y L I M I T E D
Slide 4: Q3 FY19-20 Performance Highlights
Q 3 F Y 1 9 - 2 0 P E R F O R M A N C E H I G H L I G H TS Investor presentation Q3 2019-20 Gross Production Net Production • Drilling of first well completed safely and successfully; Conversion of Jack-up rig to MOPU (BOEPD) (BOEPD) for B80 on-track for sail out in March 2020; Floating Storage & Of
Slide 5: Focus Areas & Priorities
FO C U S A R EA S & P R I O R I T I ES Investor presentation Q3 2019-20 Deliver • B-80 Development – Endeavor to deliver ‘First Oil’ by June 2020 subject to weather window ; ‘First Gas Sales” by Dec 2020 Development • Phase - II development of Dirok to increase production by Q1 FY 21- Projects 22 •
Slide 6: B-80 Development Plan
B - 8 0 D E V E LO P M E N T P L A N Investor presentation Q3 2019-20 1 FDP involves drilling of two wells and process by MOPU 2 Marketing and pricing freedom Evacuating Oil through FSO & shuttle 3 tankers; Gas through existing ONGC line to Hazira STOIIP – 40 MMbbls; 4 GIIP – 44 bcf 5000 bopd & Targ
Slide 7: B-80 Project Update
Board presentation Q3 2019-20 B - 8 0 P ROJ EC T U P DAT E 1. Drilling 2. Mobile Off-shore 3. Oil & Gas Export Systems Processing Unit (MOPU) - Floating Storage and Off-loading - First well drilled to target depth of 2730 - Conversion of Rig to MOPU is nearing (FSO) unit sourced mtr safely completio
Slide 8: Dirok Phase II Development
D I RO K P H A S E - I I D E V E LO P M E N T Investor presentation Q3 2019-20 Project on-track for delivery of additional gas by Q1 FY21-22 RFDP approved by Managing Committee 1. DRILLING 2. PROCESSING 3. DELIVERY HMGPP capacity expansion 35 KM pipeline from HMGPP 3 development wells - Increases ca
Slide 9: Kharsang Updates & Development Plan
K H A RSA N G U P DAT ES & D E V E LO P M E N T P L A N Investor presentation Q3 2019-20 Plan for 18 wells in Phase - I FDP approved with the following parameters: Reservoir Upper Girujan OIIP/ GIIP 223 MMBBls/ 184 BCF Production Rate Production to be increased to 1800 bopd from ~650 bopd Planned Ac
Slide 10: PY-3: Corporate Developments
P Y - 3 : CO R P O R AT E D E V E LO P M E N TS Investor presentation Q3 2019-20 ― HEPI was acquired by Inveniere Energy on 2nd October 2019 FPS PY3 ― Operatorship is retained by Hardy under new management ― HOEC has 21% stake in PY-3. Operates PY-1 Gas field with an offshore platform and onshore Ga
Slide 11: Cambay Blocks
C A M BAY B LO C KS Investor presentation Q3 2019-20 3 blocks with developed infrastructure with upside to be exploited E Asjol ; (O); PI 50.0% D North Balol ; (O); PI 25.0% C CB-ON-7; (O); PI 35.0% 3 blocks - Asjol, North Balol and CB-ON/7 R2 Area : CB-ON/7 ― Revised FDP approved for Asjol & PSC ex
Slide 12: Value Proposition
VA LU E P RO P O S I T I O N Investor presentation Q3 2019-20 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 better returns 11 | H I N D U S T A N OIL E X P L O R A TI
Slide 13: Quality Asset Portfolio
Q UA L I T Y A S S E T P O RT F O L I O Investor presentation Q3 2019-20 A AAP-ON-94/1; (O); PI 26.882% • Portfolio of discovered resources – Ten blocks B AA/ONDSF/KHEREM/2016; (O); PI 40.0% with discoveries producing / ready to be developed K • Diverse geographical footprint - Presence in 4 out of
Slide 14: Firing Up the Growth Engine
F I R I N G U P T H E G ROW T H E N G I N E Investor presentation Q3 2019-20 13 | H I N D U S T A N OIL E X P L O R A TI ON C O M P A N Y L I M I T E D
Slide 15: Market Outlook
M A R K E T O U T LO O K Investor presentation Q3 2019-20 Historic Brent Price ($/bbl) GoI Price of Domestic Gas ($/mmbtu) 90 4 3.69 3.36 3.23 80 3.5 3.06 2.89 3.06 70 3 2.5 2.48 60 2.5 50 2 40 1.5 30 1 20 0.5 10 0 0 ― Indian E&P industry opening up due to key policy changes and introduction of regu
Slide 16: Business Outlook - Summary
B U S I N ES S O U T LO O K - S U M M A RY Investor presentation Q3 2019-20 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
Slide 17: Annexures
Annexures Eesha weeeeermeess Senn Tipe — 4)
Slide 18: Standalone Statement of Profit & Loss
STA N DA LO N E STAT E M E N T O F P RO F I T & LO S S Investor presentation Q3 2019-20 For the Quarter For the year (₹ Crores) . Particulars Qtr3-19-20 Qtr2-19-20 YTD-19-20 FY 18-19 INCOME Revenue from operations 45.18 56.86 151.39 236.89 Other income 5.68 4.89 14.59 10.06 Total revenue 50.86 61.75
Slide 19: Standalone Statement of Assets & Liabilities
STA N DA LO N E STAT E M E N T O F A S S E T & L I A B I L I T I ES ( U N AU D I T E D ) Investor presentation Q3 2019-20 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Dec 31, 2019 March 31, 2019 Dec 31, 2019 March 31, 2019 Non-current assets Shareholders’ funds Property, Plant and Equ
Slide 20: Consolidated Statement of Profit & Loss
CO N S O L I DAT E D STAT E M E N T O F P RO F I T & LO S S Investor presentation Q3 2019-20 For the Quarter For the year (₹ Crores) Particulars Qtr3-19-20 Qtr2-19-20 YTD-19-20 FY 18-19 INCOME Revenue from operations 49.50 62.38 168.56 265.14 Other income 5.66 5.06 14.79 11.19 Total revenue 55.16 67
Slide 21: Consolidated Statement of Assets & Liabilities
CO N S O L I DAT E D STAT E M E N T O F A S S E T & L I A B I L I T I ES ( U N AU D I T E D ) Investor presentation Q3 2019-20 As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES Dec 31, 2019 March 31, 2019 Dec 31, 2019 March 31, 2019 Non-current assets Shareholders’ funds Property, Plant an
Slide 22: GoI Policy on Royalty & Cess
G O I P O L I C Y O N ROYA LT Y & C ES S Investor presentation Q3 2019-20 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
Slide 23: Investment Multiples
I N V EST M E N T M U LT I P L ES Investor presentation Q3 2019-20 Block AAP-ON-94/1 PY-1* PY-3* N. Balol Asjol* CB-ON-7 Kharsang* Gas 10% 10% 10% 10% - - - Royalty Oil/Cond 20% INR 481/MT 10% - INR 481/MT 20% INR 481/MT Cess Oil/Cond 20% INR 900/MT 20% 0 INR 900/MT 20% INR 900/MT Cost Recovery limi
Slide 24: RSC Parameters
RS C PA R A M E T E RS Investor presentation Q3 2019-20 Block B-80 Kherem AA-ONHP-2017/19 Umatara Government Share of 12% 21% 22% 48% Revenue – LRP Government Share of 55% 99% 99% 99% Revenue - HRP 10% for crude oil, 12.5% for crude oil 12.5% for crude oil 12.5% for crude oil Royalty condensate and
Slide 25: Dirok: Delivered Results on Fast-Track Mode
D I RO K : D E L I V E R E D R ES U LTS O N FA ST - T R AC K M O D E Investor presentation Q3 2019-20 23 | H I N D U S T A N OIL E X P L O R A TI ON C O M P A N Y L I M I T E D
Slide 26: Kherem (Arunachal Pradesh – DSF Block)
K H E R E M ( A R U N AC H A L P R A D ES H – D S F B LO C K ) Investor presentation Q3 2019-20 • 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 (
Slide 27: Asset Portfolio & JV Partners
A S S E T P O RT F O L I O & J V PA RT N E RS Investor presentation Q3 2019-20 Block Name Operator Location Oil/Gas PI Partner(s) Oil/Gas Consumers Gas – OIL India; Dirok HOEC Onshore Gas 27% Condensate – IOCL Gas – GAIL; Producing PY-1 HOEC Offshore Gas 100% Nil Condensate – CPCL CB-ON-7 HOEC Onsho
Slide 28: Company Overview
CO M PA N Y OV E RV I E W Investor presentation Q3 2019-20 Shareholding Pattern (more than 10 %) HDFC 10.65% 75.39% 13.96% (65,000+) Retail & Others AKGT Board of Directors Vivek Rae P. K. Borthakur Sharmila Amin Ashok Goel Rohit Rajgopal Dhoot P. Elango R. Jeevanandam Non-Executive Non-Executive No
Slide 29: Contact
CO N TAC T Investor presentation Q3 2019-20 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/ Hina Agarwal jdais
Slide 30: Glossary
G LO S SA RY Investor presentation Q3 2019-20 2P - Proved + Probable reserves RSC - Revenue Sharing Contract BCF - Billion Cubic Feet of Gas HMGPP - Hollong Modular Gas Processing Plant GGS - Gas Gathering Station HMGPP - Modular Gas Processing Plant MMbbls - Million Barrels of Oil MMSCFD - Million
Hindustan Oil Exploration Company — Q3 FY2019-20 Earnings Presentation on 6ix