Oil India Limited · NSE:OIL
Oil India — Investor Presentation (August 2011)
35 slides from Oil India's investor presentation, Aug 25, 2011
Slide 1: Analysts' & Investors' Meet
Oil India Limited . August 25, 2011 Welcome to Analysts’ & Investors’ Meet atae sfear fafaes i Oil India Limited
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward looking statements concerning OIL India’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements.
Slide 3: An Overview
An Overview aia ster fates [Oil India Limited
Slide 4: Oil India: Brief Overview
Oil India: Brief Overview India’s premier Oil & Gas “Navratna” company engaged in the exploration, development, production and transportation of crude oil and natural gas in India Rich Heritage Independent India’s first commercial oil discoveries, with the first made in 1953 Integrated O&G Presence
Slide 5: Shareholding pattern
Shareholding pattern % Key shareholders Shareholding Indian Oil Corporation 4.45% 4.2% 1.1% 2.1% Bharat Petroleum Corporation 2.23% 3.0% Hindustan Petroleum Corporation 2.23% ICICI Prudential Life Insurance 0.78% 11.1% HDFC Standard Life Insurance 0.64% HDFC Trustee Company Limited-Equity 0.61% Fund
Slide 6: Performance of OIL India
Performance of OIL India 1.6 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 N-09 N-10 S-09 J-10 J-10 S-10 J-11 J-11 M-10 M-10 M-11 M-11 OINL ONGC NIFTY SENSEX OIL & Gas Index
Slide 7: Our Vision
Our Vision "The fastest growing energy company with a global presence providing value to the shareholder" • Fastest growing Energy Company with highest profitability. • Delight customers with quality products and services at competitive prices • Learning Organization, nurturing initiatives, innovati
Slide 8: Rich heritage of building a company
Rich heritage of building a company • Independent India’s first commercial oil discoveries were made by Assam Oil Company – Nahorkatiya, Assam – 1953 – Moran, Assam – 1956 • Incorporated as Joint Sector Company on 18 February, 1959 – 2/3rd Owned by Assam Oil Company / Burmah Oil Company – 1/3rd Owne
Slide 9: Integrated Oil & Gas Player
Integrated Oil & Gas Player Exploration Production Transportation Downstream Domestic: 30 E&P 50 years of experience Crude Oil: Refining and marketing blocks1 FY’ 11 Produced 25.71 – 1,157 km pipeline ; petroleum products: mmbbl of Crude oil: ~6 MMT capacity – 26% equity stake in International: Egyp
Slide 10: Strong Domestic Acreage Base
Strong Domestic Acreage Base Blocks Op N/Op Total AA-ONN 30% NELP 12 18 30 Pre-NELPJV - 3 3 AA-ONN 90% þ PEL (Nom) 9 - 9 PML 19 - 19 AA-ONN 50% þ Total 40 21 61 ASSAM +AP AA-ONN 85% þ þ 60% AA-ONN 50% RJ-ONN AAP-ON 16% AA-ONN 20% þ 60% RJ-ONN AA-ONN 15% þ 75% AA-ONN 85% RJ-ONN AA-ONN 10% MZ-ONN 75%
Slide 11: NELP IX: Blocks provisionally awarded
NELP IX: Blocks provisionally awarded OIL’s Investment – US$ 76.52 mn Investment Consortium Name of the Block Operator Area Type Area (sq. km.) (US$ mn) Partners (PI) ONGC-30% 28.19 AA-ONN-2010/2 OIL (40%) Assam – Arakan Basin Onland 396 GAIL- 20% (OIL-11.28) EWP – 10% 8.86 ONGC-40% AA-ONN-2010/3 OI
Slide 12: With Dominant International Footprint
With Dominant International Footprint LIBYA EGYPT 50 7,087 Area 86 Block 3 6,725 50 2,710 Area 102/4 25 (GSPC) Block 4 2,510 6,629 Area 95/96 25(Sonatrach) NIGERIA SUDAN 741 km 10 17.5 (Summit) 1,295 OPL 205 Pipeline GABON IRAN 45 3,761 Shakti Farsi Offshore 3,500 20(OVL) TIMOR LESTE 12.5 3.5 Block
Slide 13: Strong Reserve Base with Significant Growth Potential
Strong Reserve Base with Significant Growth Potential In MMBBL As on 01/04/2011 1600 1,372 1400 1200 505 1000 944 800 360 600 505 867 400 225 584 200 280 0 1P 2P 3P Crude Oil Natural Gas 1P Reserves represent: ≥ 11 Years current production of Crude Oil ≥ 15 Years current production of Natural Gas ≥
Slide 14: Healthy and Consistent Reserve Replacement Ratio
Healthy and Consistent Reserve Replacement Ratio Reserve Replacement Ratio (x) 2.04 2.04 1.69 1.65 1.42 Crude Oil and Natural Gas (O+OEG) Production and Reserve Accretion (in MMTOE) 10.4 10.3 9.4 9.7 8.4 5.6 5.9 5.9 5.1 5.1 FY2007 FY2008 FY2009 FY2010 FY2011 Production (O + OEG) Accretion Adequate r
Slide 15: Integrated In-house E&P Infrastructure To Support Growth
Integrated In-house E&P Infrastructure To Support Growth In house Expertise and Integration across Energy Infrastructure Infrastructure to Support E&P Activities Production & Storage Facilities Two 2D and One Six Logging 72 Production 3D Seismic Crew Trucks Installations 5,000 Km ~150k KL 14 W/over
Slide 16: Strategy to Deliver Long Term Growth and Shareholder Value
Strategy to Deliver Long Term Growth and Shareholder Value 1 Use Advanced Techniques to Improve Existing Productivity Continue to induct world class technology 5 Explore Non-conventional 2 Increase Reserves and energy sources Production in Existing Acreage Explore alternate energy opportunities in e
Slide 17: Significant Investment Lined Up
Significant Investment Lined Up Significant focus on Exploration and Development of existing acreage potential 2011-2012: 31,803 mn Overseas M&A Projects 1% 11% Domestic Assets 9% Development Exploration & 27% Appraisal 52%
Slide 18: Planned Activities in FY12
Planned Activities in FY12 Substantial Increase in 3D Surveys, Exploratory and Development Drilling Planned. 3D Seismic Surveys Exploratory Drilling Development Drilling 34 1,767 34 16 25 672 FY11 FY12 FY11 FY12 FY11 FY12
Slide 19: Recent Developments
Recent Developments aia ster fates [Oil India Limited
Slide 20: Select Highlights
Select Highlights Achieved the highest daily rate of crude oil production of 3.93 MTPA (> 27.96 mmbbls/Year) Achieved the highest daily rate of natural gas production of 6.67 MMSCMD in North East and potential of 0.93 MMSCMD in Rajasthan Performance up to 31 March 2011: Parameter Unit 2009-10 2010-1
Slide 21: Select Highlights (Contd.)
Select Highlights (Contd.) • Successful commissioning of Duliajan-Numaligarh Pipeline (DNP) w.e.f 28-02-2011 • Completed Preliminary Activities in order to Develop CNG Network in Assam. • MOUs with BPCL, IOCL & ONGCL executed for CGD. Submitted bids for two cities. • Received Greentech HR Excellence
Slide 22: Operating Performance
Operating Performance aia ster fates [Oil India Limited
Slide 23: Crude Oil and Natural Gas Production
Crude Oil and Natural Gas Production Crude Oil Production (mm bbl) Natural Gas Production (mm scm) 25.7 0.93 24.95 2,415 2,341 2,349 25.71 2,269 22.38 6.81 641 5.68 553 2007-08 2008-09 2009-10 2010-11 Q1 FY'11 Q1 FY'12 2007-08 2008-09 2009-10 2010-11 Q1 FY'11 Q1 FY'12 ~20% increase over last year (Q
Slide 24: Production Cost
Production Cost Crude Oil Production Cost (USD/ Barrel) Natural Gas Production Cost (USD/ MMBTU) 7.6 1.3 7.2 1.2 7.1 6.8 1.1 0.2 0.2 2.0 1.1 1.6 0.2 1.8 1.4 0.1 0.1 0.2 0.4 0.3 0.1 4.8 0.4 0.4 0.8 0.1 1.2 0.2 0.3 0.1 5.3 0.9 1.0 5.1 5.2 0.9 4.9 0.8 3.3 0.5 2006-07 2007-08 2008-09 2009-10 2010-11 200
Slide 25: Low Finding & Development Costs
Low Finding & Development Costs OIL has the Advantage of Low Finding & Development costs. Finding and Development Costs (USD / bbl) 6.00 5.5 5.00 4.1 4.2 4.00 3.8 3.0 3.0 3.00 2.8 2.5 2.00 1.8 1.8 1.00 0.00 FY2007 FY2008 FY2009 FY2010 FY2011 Finding Costs F&D Costs
Slide 26: Financial Performance
Financial Performance aia ster fates [Oil India Limited
Slide 27: Sharing of Subsidy by Upstream Companies
Sharing of Subsidy by Upstream Companies Rs. in Crores 2007-08 2008-09 2009-10 2010-11 Q1 FY’11 Q1 FY’12 ONGC 22,001 28,226 11,554 24893 5516 12046 OIL 2,307 3,023 1,549 3293 730 1781 GAIL 1,401 1,694 1,326 2111 445 682 Total 25,709 32,943 14,430 30,297 6,691 14,509 % SHARING 2007-08 2008-09 2009-10
Slide 28: Realized Price
Realized Price (USD/barrel) 116.3 86.1 83.2 81.7 78.1 68.5 58.1 58.5 59.6 55.6 56.2 49.7 39.8 41.4 42.1 36.2 39.0 33.8 FY2008 FY2009 FY2010 FY2011 Q1 FY'11 Q1 FY'12 Gross Realized Price Realized Price after Subsidy/Discount Net Realized Price
Slide 29: Revenue and profitability
Revenue and profitability Revenue and profitability analysis (Rs Crore) 10,000 9,549 8,860 9,000 8,178 8,000 6,796 7,000 6,010 6,000 5,000 4,000 2888 3,000 2610 2,669 2162 1640 1789 1,817 2,000 850 1,000 501 0 FY2007 FY2008 FY2009 FY2010 FY2011 Q1 FY'11 Q1 FY'12 Income PAT Note: Exchange rate 1 USD
Slide 30: Networth and Book Value
Networth and Book Value Networth (Rs crores) and Book Value Analysis (Rs) 18,000 1000 16,000 900 800 14,000 684 649 700 12,000 572 593 600 10,000 436 371 500 8,000 16,451 15,602 13,745 14,251 400 6,000 300 9,331 4,000 7,933 200 2,000 100 0 0 FY2008 FY2009 FY2010 FY2011 Q1 FY'11 Q1 FY'12 Networth (LH
Slide 31: Cash Flow and EBITDA Margin
Cash Flow and EBITDA Margin Cash Flow (Rs Crores) EBITDA (Rs Crores) and EBITDA MARGIN (%) 3,000 120% 5000 4,805 60% 4500 4,380 52% 2,548 2,500 100% 50% 50% 4000 49% 2,135 43% 3,568 46% 3500 42% 2,000 80% 40% 1,798 3000 2,841 1,500 1,385 60% 2500 30% 972 2000 1,000 40% 20% 1500 1,387 608 500 20% 100
Slide 32: Dividends distribution and Earnings per share highlights
Dividends distribution and Earnings per share highlights Dividends distribution Earnings per share and Debt-Equity ratio 35 375 400 140 0.14 380 340 360 0.12x 34 340 120 0.12 305 320 275 300 33 265 260 280 100 0.1 260 0.06x 240 32 80 0.08 220 200 0.07x 180 31 33.9 60 120 0.06 33.6 160 114 104 32.9 1
Slide 33: Guidance: FY'12
Guidance: FY’12 2009-10 2010-11 2011-12 (Target) Crude oil production 3.57 mmt 3.61 MMT 3.76 MMT Natural gas production 2,415 mmscm 2,349 mmscm 2,633 mmscm Increase in Exploratory and Development Drilling Meterage Increase in Work Overs Enhanced Water Injection Endeavour to Enhance LPG production th
Slide 34: Conclusion
Conclusion Stable Operations, Looking for Growth Company with Good Operating Track Record Sound Financial Health Company with more than 5 Decades of E&P Expertise Large Prospective E&P Acreage Entry into Deepwater/Offshore Blocks as Operator Entry into discovered assets in Venezuela, Acquisition Thr
Slide 35: Thank You
Thank You re) aitae stem fafits [Oil India Limited