Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q2 FY2023 Earnings Presentation
27 slides from Hindustan Oil Exploration's earnings presentation, Nov 14, 2022
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 November 14, 2022 By Online The Listing Departme
Slide 2: Investor Presentation Q2/H1-FY23
Hindustan Oil Exploration Company Limited INVESTOR PRESENTATION | Q2/H1-FY23 NOVEMBER 2022
Slide 3: HOEC – On the Cusp of Transformation
HOEC – On the Cusp of Transformation Right Resources Right Strategy Right Environment • Established player with • Short cycle projects with • Next level of revenue and proven track record immediate production uptick cashflow generation from project delivery • Experienced and focused • Cost effective
Slide 4: Proven Track Record
Proven Track Record Gross Production (boepd) 8,508 8,622 7,895 7,496 7,243 FY 19 FY 20 FY 21 FY 22 H1 FY 23 > 100% 27 Months 4.5 Years 5 yr Gross Production CAGR Dirok (Assam) – FDP to First Gas Timeline B-80 (Western Offshore) – FDP to First Gas Timeline 3
Slide 5: Board of Directors
Board of Directors Vivek Rae - Non-Executive Independent Director/ Chairman Mr Rae, a former secretary, Ministry of Petroleum & Natural Gas, Government of India, served in the Indian Administrative Services for 38 years. Subsequent to his retirement, Mr. Rae served as a whole-time member of the 7th
Slide 6: Tailored Asset Portfolio with Broad Geographical Presence
Tailored Asset Portfolio with Broad Geographical Presence Onshore Offshore Onshore Offshore Onshore Oil Well Oil Well Gas Gas Exploration • India Focused Asset Portfolio tailored to deliver our strategy of rapid development of discovered resources • Strong offshore presence with anchor assets on bot
Slide 7: Focused Strategy for Value Generation
Focused Strategy for Value Generation Uniquely placed with right organization and right asset portfolio to deliver superior value Focus on Growth strategy Growing responsibly Discovered Resources • Focus on discovered oil and • Build on Offshore Operating • Create long-term stakeholder gas resources
Slide 8: Business Overview
BUSINESS OVERVIEW 7
Slide 9: B-80: Key Milestones
B-80: Key Milestones • FDP Approved Dec 2017 • Drilling & completion – 2 subsea development wells April 2020 KGB- Offshore Installation at B-80 Site • Offshore Installation(OI) for collecting, separating and processing March 2021 well fluids • Hot-Tap of existing ONGC WO-16 Pipeline; Subsea producti
Slide 10: B-80: Production Start-up and Marine System Performance Challenges During Monsoon
B-80: Production Start-up and Marine System Performance Challenges During Monsoon • Post commissioning of integrated system, managed to flow both the wells D1 (Oil) & D2 (Gas) individually. • D1 Oil well shut-in requiring rectification of actuator line issues. • Commercial gas sales commenced on 4 J
Slide 11: Dirok: Production & Phase-II development
Dirok: Production & Phase-II development Field Layout 34 mmscfd 613 bopd > 15% Gas Production Condensate Production Assam Gas (Q2-FY23) (Q2-FY23) Production • Premium sales during Q2 FY 2022-23 constitute about 45% of total Dirok sales • Central PSU Indradhanush Gas Grid Limited (IGGL) is expected t
Slide 12: PY-1: Enhancing Production and Offtake Arrangements
PY-1: Enhancing Production and Offtake Arrangements USD 3.67 55 mmscfd 56 km Realised Price per Processing Sub sea MMBTU Capacity pipeline Cauvery • Only offshore platform in Cauvery Basin with 8 slots and four wells drilled • Unique, gas-bearing and the only offshore fractured granitic basement res
Slide 13: Kharsang: Phase I Development Plan
Kharsang: Phase I Development Plan 455 boepd 18 Oil Production 30% Number of Direct + Indirect PI Wells to be drilled in near (Q2-FY23) future Field Overview • HOEC acquired entire share capital of M/s Geopetrol International Inc in 2018 which has 30% stake - Direct and Indirect in Kharsang Oil fiel
Slide 14: Cambay: Developments
Cambay: Developments 74 boepd 0.361 mmscfd Asjol, North Oil Production Total Gas Production Balol and Palej Cambay Cambay (Q2-FY23) (Q2-FY23) Marginal fields at Cambay Approved FDP to be executed over the next two years: Gujarat • Asjol: 2 development wells & hook-up to EPS; public hearing completed
Slide 15: Other Blocks
Other Blocks • Block awarded under DSF - 2016 HOEC PI JV Partners • Tested - Oil 402 bopd Kherem • Field Plan- 2 wells to be completed in 3 years from date of receiving PML • Forest Clearance (FC) in final stages. NoC for FRA obtained, PML to be 40% processed after FC. • Block awarded under DSF – 20
Slide 16: Financial Overview
<~ H==EL FINANCIAL OVERVIEW
Slide 17: Standalone Statement of Profit or Loss
Standalone Statement of Profit or Loss PARTICULARS (INR Cr) Q2-FY23 Q1-FY23 FY22 FY21 INCOME Revenue from operations 75.84 62.24 130.51 99.44 Other income 5.85 7.95 16.80 11.82 Total revenue 81.69 70.19 147.31 111.26 EXPENSES Expenses from producing oil and gas blocks 47.21 22.09 22.25 22.96 Royalty
Slide 18: Standalone Statement of Assets & Liabilities
Standalone Statement of Assets & Liabilities PARTICULARS (INR Cr) H1-FY23 FY22 FY21 PARTICULARS (INR Cr) H1-FY23 FY22 FY21 EQUITY AND LIABILITIES ASSETS Non-Current Asset 963.23 968.37 704.41 Equity 806.72 765.97 730.18 (a) Property, Plant and Equipment (a) Equity share capital 132.26 132.26 132.26
Slide 19: Consolidated Statement of Profit or Loss
Consolidated Statement of Profit or Loss PARTICULARS (INR Cr) Q2-FY23 Q1-FY23 FY22 FY21 INCOME Revenue from operations 124.58 89.42 155.73 113.86 Other income 1.21 1.62 11.46 11.32 Total revenue 125.79 91.04 167.19 125.18 EXPENSES Expenses from producing oil and gas blocks 48.71 23.71 28.23 29.54 Ro
Slide 20: Consolidated Statement of Assets & Liabilities
Consolidated Statement of Assets & Liabilities PARTICULARS (INR Cr) H1-FY23 FY22 FY21 PARTICULARS (INR Cr) H1-FY23 FY22 FY21 EQUITY AND LIABILITIES ASSETS Non-Current Asset 1,393.14 1360.34 958.41 Equity 803.16 753.12 733.17 (a) Property, Plant and Equipment (a) Equity share capital 132.26 132.26 13
Slide 21: Capital Market Data
Capital Market Data 15% HOEC S&P BSE Oil & Gas Index Price Data (As on 30th September 2022) 5% Market Price (INR) 133.2 -5% 52 Week H/L (INR) 245.2/125.7 -15% Avg. Net Turnover (INR Mn) 183.4 -25% Market Cap (INR Mn) 17,609.4 -35% Equity Shares Outstanding (Mn) 132.2 -45% Oct-21 Nov-21 Dec-21 Jan-22
Slide 22: Reference
‘to 5 REFERENCE
Slide 23: Production Sharing Model
Production Sharing Model Aggregate Aggregate Investment value of Net value of *Aggregate value to be taken from the year when production/investments Multiple Cash Income Investments first incurred Net Cash Income Investments Cost Petroleum Contractors exploration cost + Profit Petroleum + + Contract
Slide 24: Investment Multiple under PSC
Investment Multiple under PSC Block AAP-ON-94/1 PY-1* PY-3* North Balol Kharsang* CB-ON-7 Asjol* Gas 10% 10% 10% 10% - - - Royalty Oil/Cond 20% - 10% - 20% 20% 20% Cess Oil/Cond 20% 20% 20% 0% 20% 20% 20% Cost Recovery 80% 100% 100% 80% 100% 60% 100% Limit Investment Multiple (Govt. Share Percentage
Slide 25: Revenue Sharing Model
Revenue Sharing Model 90% 100% Bidding process based on the Revenue Sharing Model involves 2 parameters – % of Govt. share of revenue 90% 80% Lower Revenue Point (LRP) and Higher Revenue Point (HRP). The revenue share 70% for intermediate points will be calculated by linear interpolation. The bidder
Slide 26: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 27: Thank You
THANK YOU 26
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