Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — FY2020 Earnings Presentation
34 slides from Hindustan Oil Exploration's earnings presentation, Jun 1, 2020
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 June 01, 2020 By Online The Listing Department T
Slide 2: Investor Presentation | June 2020
INVESTOR PRESENTATION | June 2020
Slide 3: HOEC in a Snapshot
HOEC in a Snapshot First private company in India to enter HOEC has 10 blocks with discoveries Gross production stood at 7,869 boepd the field of oil and gas Exploration & producing or ready to be developed and Net Production stood at Production and 1 exploratory block in its portfolio 3,163 boepd f
Slide 4: FY20/Q4-FY20 Operational Highlights
FY20/Q4-FY20 Operational Highlights Gross Production Net Production Gross Production Gross Production (BOEPD) (BOEPD) - PY-1 (BOEPD) - Dirok (BOEPD) FY20 : 7,869 FY20 : 3,163 FY20 : 736 FY20 : 6,351 Q4: 5,783 Q4: 2,257 Q4: 459 Q4: 4,586 In B-80, two subsea well drilling completed successfully during
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 36 years. Subsequent to his retirement, Mr. Rae served as a whole-time member of the 7th
Slide 6: Geographical Presence
Geographical Presence Asjol Legend Onshore Oil Offshore Oil Onshore Offshore Onshore Well Well Gas Gas Exploration Kherem North Balol Dirok Cambay Umatara Kharsang Palej Assam Arakan Greater Dirok INDIA PY-1 Mumbai High Cauvery PY-3 B-80 5
Slide 7: Competitive Advantages
Competitive Advantages Uniquely placed with a strong organization and a quality asset portfolio. HOEC will take advantage of its position to deliver superior returns and value to all stakeholders, through a 5-pronged strategy Focus on Low cost operating Light Asset Model Growing responsibly Growth s
Slide 8: Our Partners
Our Partners We are the private partner of choice for PSU companies Adbhoot Estates Private Limited 7
Slide 9: Business Overview
il 3 r mt " 2A MENSA BUSINESS OVERVIEW
Slide 10: B-80: Project at an advanced stage- 50% PI
B-80: Project at an advanced stage- 50% PI 8000 boepd 13% to 30% (Barrel of oil equivalent per day) Share of Oil to increase in Expected Total Production production mix (Phase I) B-80 Development – Top Priority • Two subsea development wells are drilled and Maharashtra completed and ready to flow •
Slide 11: B-80: Field Development Plan
B-80: Field Development Plan • Drilling & Completion Project Update of two subsea wells to produce Oil & Gas Completed • Processing of Oil & • Jack-up rig procured and Gas through Mobile converted to MOPU and Offshore Processing is ready to sail out Unit (MOPU) • Drilling & completion of 2 subsea we
Slide 12: Dirok: Priority in Assam
Dirok : Priority in Assam JV Partners 25.8 mmscfd 676 boepd > 15% Gas Production Condensate Assam Gas (in FY20) Production Production (in FY20) Oil India is the sole buyer for the gas produced in this field Concentrated in India’s North-East Premier Basin • Dirok gas field is located in Block AAP-ON
Slide 13: Dirok: Field development
Dirok: Field development First phase of development involved the following • Drilling and completion of 6 development wells- 3 re-entry and 3 new wells • Set up a Gas Gathering Station • Set up a Gas Processing Plant with a capacity of 40 mmscfd • Laid pipelines tied to the existing infrastructure t
Slide 14: PY-1: Enhancing Production and Offtake Arrangements
PY-1: Enhancing Production and Offtake Arrangements USD 3.65 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, predominantly gas-bearing reservoir and the only offshore fractur
Slide 15: Kharsang: Phase I Development Plan
Kharsang: Phase I Development Plan 650 boepd 30% 18 Number of Current Oil Production Direct + Indirect PI Wells to be drilled Field Overview • The Kharsang oil field is located in the state of Arunachal Pradesh and 60 kms away from Dirok • Post drilling of 18 wells, production expected to increase t
Slide 16: Cambay: Developments
Cambay: Developments 0.38 mmscfd Asjol, North 90 bopd Total Oil Production (FY20) Total Gas Production Balol and Palej Cambay Cambay (FY20) Marginal fields at Cambay Developments • Asjol - Revised Field Development Plan approved and Production Sharing Contract (PSC) Gujarat extended up to 2030 • Nor
Slide 17: Other Blocks
Other Blocks • Block awarded under DSF-2016 HOEC PI JV Partners • Tested - Oil 402 bopd • Field Plan- 2 wells to be completed in 3 years from date of receiving Kherem PML • Development- Application for Forest Clearance and PML is in 40% process • Block awarded under DSF-2019 Umatara • Located at a d
Slide 18: 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 Companies’ exploration cost + Profit Petroleum + + Companies
Slide 19: 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% 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 80% 100% 100% 80% 100% 60% 100% Limit
Slide 20: 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 21: Strategic Overview
Tet J | iN STRATEGIC OVERVIEW
Slide 22: Focused Growth Strategy
Focused Growth Strategy Cost-effective delivery Near Field Exploration Opportunistic of Development to widen existing Portfolio Projects “Footprint” Growth Make Portfolio work to deliver Discover resources near existing Leverage “Opening Up” of Sector in value even in low price infrastructure for fa
Slide 23: Industry Overview
INDUSTRY OVERVIEW 22
Slide 24: Industry Snapshot
Industry Snapshot Domestic Natural Gas (MMSCM) Robust Demand Policy Support • India is the third largest energy • Government has enacted various Gross natural gas production Natural gas consumption LNG imports consumer and fourth largest policies such as OALP, DSF and 63,932 Production enhancement 5
Slide 25: Milestones in the Oil and Gas Industry
Milestones in the Oil and Gas Industry State Monopoly - Discovered Small Field Bid Round II Acreages awarded Liberalization of E&P Sector with - Policy permitting exploration & exploitation to NOCs on 9 NELP rounds. 254 exploratory Discovered Small of unconventional hydrocarbons Nomination Basis blo
Slide 26: Price Trends for Crude Oil and Natural Gas
Price Trends for Crude Oil and Natural Gas Average Crude Oil Price ($/barrel) Domestic Natural Gas Prices (US$/mmbtu) 6 120 111.89 5.05 107.97 105.52 5 4.66 100 83.57 84.16 3.82 3.69 4 80 3.36 3.23 69.76 69.88 3.06 3.06 2.89 60.47 3 56.43 2.5 2.48 2.39 60 46.17 47.56 2 40 1 20 0 0 Source - Petroleum
Slide 27: Financial Overview
55 mmscfd Processing Capacity FINANCIAL OVERVIEW 26
Slide 28: Standalone Statement of Profit or Loss
Standalone Statement of Profit or Loss For the Quarter For the year (₹ Crores) . Particulars Qtr4 19-20 Qtr3-19-20 FY 19-20 FY 18-19 INCOME Revenue from operations 28.45 45.18 179.84 236.89 Other income 6.99 5.68 21.58 10.06 Total revenue 35.44 50.86 201.42 246.95 EXPENSES Expenses from producing oi
Slide 29: Standalone Statement of Assets & Liabilities
Standalone Statement of Assets & Liabilities As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES March 31, 2020 March 31, 2019 March31, 2020 March 31, 2019 Non-current assets Shareholders’ funds Property, Plant and Equipment Equity share capital 132.26 130.51 (i) Oil and gas assets 305.04 32
Slide 30: Consolidated Statement of Profit or Loss
Consolidated Statement of Profit or Loss For the Quarter For the year (₹ Crores) Particulars Qtr4-19-20 Qtr3-19-20 FY 19-20 FY 18-19 INCOME Revenue from operations 33.50 49.50 202.05 265.14 Other income 6.97 5.66 21.76 11.19 Total revenue 40.47 55.16 223.81 276.33 EXPENSES Expenses from producing oi
Slide 31: Consolidated Statement of Assets & Liabilities
Consolidated Statement of Assets & Liabilities As at ₹ crores As at ₹ crores ASSETS EQUITY AND LIABILITIES March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019 Non-current assets Shareholders’ funds Property, Plant and Equipment Equity share capital 132.26 130.51 (i) Oil and gas assets 331.78
Slide 32: Capital Market Data
Capital Market Data HOEC S&P Oil and Gas Index Price Data (31st March, 2020) 20% CMP (INR) 34.25 0% 52 Week H/L (INR) 135.75/30.55 -20% Avg. Net Turnover (INR Mn) 3.20 -40% -60% Market Cap (INR Mn) 4,562 -80% Equity Shares Outstanding (Mn) 132.24 Institutional Holding Shareholding Pattern (31st Marc
Slide 33: 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 34: Thank You
THANK YOU 33
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