Hindustan Oil Exploration Co., Ltd. · NSE:HINDOILEXP
Hindustan Oil Exploration — Q3 FY2021-22 Earnings Presentation
30 slides from Hindustan Oil Exploration's earnings presentation, Feb 14, 2022
Slide 1: Cover letter to stock exchanges: Investor Presentation
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 February 14, 2022 By Online The Listing Departme
Slide 2: Investor Presentation | February 2022
Hindustan Oil Exploration Company Limited INVESTOR PRESENTATION | FEBRUARY 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 B-80 project delivery • Experienced and focused • Cost effe
Slide 4: Proven Track Record
Proven Track Record Gross Production (boepd) 9,179 8,590 8,660 7,869 7,684 2,429 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 H1 FY 2021-22 Q3 FY 2021-22 > 100% 27 Months 5 yr Gross Production CAGR Dirok – 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 36 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 Low cost operating Light Asset Model Growing responsibly Growth strategy Discovered Resources model • Focus on discovered • Follow Light-Asset • Follow a low-cos
Slide 8: Business Overview
BUSINESS OVERVIEW 7
Slide 9: B-80 Project – On Going Activities
B-80 Project – On Going Activities KGB - Offshore Installation (OI) Gas e-Auction • KGB modification engineering works • Engaged M/s MSTC for eBidding – NIT issued on 27th Jan 2022 to install new export pumps and • Pre-bid Meeting for the eBidding held on 4th Feb 2022 shutdown valves is ongoing Comm
Slide 10: B-80 – Offshore Installation Works Completed in this weather window
B-80 – Offshore Installation Works Completed in this weather window • SPM – Calm Buoy Installation - Marine spread with diving support mobilized - Anchor Chains (6 nos.) located, picked up and re-tensioned - Calm Buoy installation completed & tested • Gas Lateral Line – 6” Ball Valve Actuator Instal
Slide 11: 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 March 2021 processing well fluids • Hot-Tap of existing ONGC WO-16 Pipeline; Subsea producti
Slide 12: Dirok: Progress on Phase-II development
Dirok: Progress on Phase-II development Field Layout 32.8 mmscfd 629 boepd > 15% Gas Production Condensate Production Assam Gas (Q3-FY22) (Q3-FY22) Production • In addition to OIL India, direct supply commenced to four other customers • Premium gas sales commenced to NRL, BCPL & NEEPCO & AGCL. • Pre
Slide 13: Dirok: E-auction for Dirok Gas - Updates
Dirok: E-auction for Dirok Gas - Updates Pipeline envisaged as part of NE gas grid Existing DNPL pipeline Margherita Gas pipeline to be laid by Dirok JV HIGHLIGHTS of E-Auction – June 2021 Current Status on E-Auction • Quantity on Offer: 1.25 mmscmd • 6 out of 8 Premium Gas Sales Agreements are sign
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, gas-bearing and the only offshore fractured granitic basement res
Slide 15: Kharsang: Phase I Development Plan
Kharsang: Phase I Development Plan 18 506 bopd 30% Number of Current Oil Production Direct + Indirect PI Wells to be drilled in near 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 field •
Slide 16: Cambay: Developments
Cambay: Developments 78 bopd 0.37 mmscfd Asjol, North Total Oil Production Total Gas Production Balol and Palej Cambay Cambay (Q3-FY22) (Q3-FY22) Marginal fields at Cambay Approved FDP to be executed over next Two years: Gujarat • Asjol: 2 development wells & hook-up to EPS • North Balol: 2 developm
Slide 17: 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. PML to be processed after FC 40% • Block awarded under DSF - 2018 • Located at a dista
Slide 18: Financial Overview
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Slide 19: Standalone Statement of Profit or Loss
Standalone Statement of Profit or Loss PARTICULARS (INR Cr) Q3-FY22 Q2-FY22 FY21 FY20 INCOME Revenue from operations 36.24 31.05 99.44 179.84 Other income 1.95 6.19 11.82 21.58 Total revenue 38.19 37.24 111.26 201.42 EXPENSES Expenses from producing oil and gas blocks 5.81 5.40 22.96 26.00 Royalty,
Slide 20: Standalone Statement of Assets & Liabilities
Standalone Statement of Assets & Liabilities PARTICULARS (INR Cr) H1-FY22 FY21 FY20 PARTICULARS (INR Cr) H1-FY22 FY21 FY20 ASSETS EQUITY AND LIABILITIES Non-Current Asset 806.01 704.41 584.44 Equity 759.32 730.18 665.08 (a) Property, Plant and Equipment (i) Oil & gas assets 281.17 288.59 305.04 (a)
Slide 21: Consolidated Statement of Profit or Loss
Consolidated Statement of Profit or Loss PARTICULARS (INR Cr) Q3-FY22 Q2-FY22 FY21 FY20 INCOME Revenue from operations 43.94 39.10 113.86 202.05 Other income 2.70 6.03 11.32 21.76 Total revenue 46.64 45.13 125.18 223.81 EXPENSES Expenses from producing oil and gas blocks 7.28 6.82 29.54 35.34 Royalt
Slide 22: Consolidated Statement of Assets & Liabilities
Consolidated Statement of Assets & Liabilities PARTICULARS (INR Cr) H1-FY22 FY21 FY20 PARTICULARS (INR Cr) H1-FY22 FY21 FY20 ASSETS EQUITY AND LIABILITIES Non-Current Asset 1129.85 958.41 769.13 Equity 761.25 733.17 679.71 (a) Property, Plant and Equipment (a) Equity share capital 132.26 132.26 132.
Slide 23: Capital Market Data
Capital Market Data 170% HOEC S&P BSE Oil & Gas Index Price Data (31st December, 2021) 150% 130% CMP (INR) 182.1 110% 52 Week H/L (INR) 222.1/78.4 90% 70% Avg. Net Turnover (INR Mn) 171.9 50% 30% Market Cap (INR Mn) 24,073.6 10% Equity Shares Outstanding (Mn) 132.2 -10% Jan-21 Feb-21 Mar-21 Apr-21 M
Slide 24: Reference
‘uo 5 REFERENCE
Slide 25: 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 26: 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 27: 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 28: Industry Outlook
Industry Outlook Historic Brent Price ($/bbl) GoI Price of Domestic Gas($/mmbtu) 4.66 100 5.00 3.82 3.69 4.00 3.36 3.23 80 3.06 2.89 3.06 2.90 2.5 2.48 2.39 60 $74.17 3.00 1.79 1.79 in Dec ‘21 2.00 40 1.00 20 0.00 Apr '15 - Sep '15 Oct '15 - Mar '16 Apr '16 - Sep '16 Oct '16 - Mar '17 Apr '17 - Sep
Slide 29: 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 30: Thank You
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