Oil India Limited · NSE:OIL
Oil India — Investor Presentation (November 2016)
38 slides from Oil India's investor presentation, November 2016
Slide 1: Oil India Limited Investor Presentation
Oil India Limited Investor Presentation November, 2016
Slide 2: Table of Contents
Table of Contents Company Background Asset Overview Strategic Strengths Operating and Financial Performance Growth Strategy 1
Slide 3: Company background
oO “atye ¢feen felines Oil India Limited
Slide 4: Oil India Ltd.: An Introduction
Oil India Ltd.: An Introduction S Over 5 decades of presence in oil & gas sector Rich Heritage S Owns and operates a fully-automated cross country crude oil pipeline Strong Parentage with S GoI ownership of 67.64% Govt. of India S Awarded ‘Navratna’ status in 2010 Integrated & fully S Presence acros
Slide 5: Milestones and Track Record
Milestones and Track Record IPO –Raised Formed as a JV with Participates first time in Rs.2777 crore. ‘Baa2’ Credit Rating Acquisition in Rovuma Offshore Burmah Oil Company NELP Listed in Stock by Moody's and BBB- Block in Mozambique and Exchanges by Fitch License 61 Block in Russia 1959 1981 1999 2
Slide 6: Strong Parentage and Experienced Management Team
Strong Parentage and Experienced Management Team Strong Parentage of Govt. of India Best In-Class Management Team S Appointed Chairman & Managing Director in Utpal Bora July, 2016 Chairman & MD 2nd Largest Public Sector E&P company Over 33 years of S Experience in diverse fields of exploration manag
Slide 7: Shareholding Structure
Shareholding Structure Corporate Others 3.65 Bodies 11.53 DII 13.50 Listed on BSE / NSE Number of shares FII 3.68 601.14 mn GOI 67.64 Key shareholders % Shareholding Dividend FY16 Rs.16 /Share Government of India 67.64 Life Insurance Corporation of India 7.38 Share price (52 Week High / Low) Rs.421
Slide 8: Share Price Movement of OIL vis-à-vis BSE 'OIL & GAS' Index
Share Price Movement of OIL vis-à-vis BSE ‘OIL & GAS’ Index 13000 440 12500 420 12000 11500 400 11000 380 10500 360 10000 9500 340 9000 320 8500 8000 300 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 OIL&GAS OIL Share Price of OIL moving in line with BSE Oil & Gas Index 6
Slide 9: Integrated and Diversified Oil & Gas Player
Integrated and Diversified Oil & Gas Player Non Conventional Exploration Production Transportation Downstream Energy SDomestic: SCrude oil SCrude Oil SRefining and SWind Energy 39 E&P blocks S41 installations S1,157 km marketing SCapacity: 121.6 SInternational: S1,602 km pipeline; Over 6 petroleum M
Slide 10: Our vision
Our vision Fastest Growing Energy Company with Highest Profitability Delight Customers with Quality Products and Services at Competitive Prices Team, Committed to Honesty, Integrity, Transparency and Mutual Trust creating Employee Pride Fully Committed to Safety, Health and Environment Learning Orga
Slide 11: Asset overview
oO “atye ¢feen felines Oil India Limited
Slide 12: Domestic Assets
Domestic Assets Non Area Blocks Operated Total Operated (SQKM) NELP 6 4 10 17,794 ASSAM +AP Pre-NELPJV - 2 2 121 AA-ONN-2010/2 40% PEL (Nom) 5 - 5 803 ASSAM +AP PML (Nom) 22 - 22 5,004 Total 33 6 39 23,722 Kharsang 40% RJ-ONN-2004/2 100% AAP-ON-94/1 41% RAJASTHAN WB-ONN-2005/4 25% AA-ONN-2010/3 40%
Slide 13: International Asset Overview
International Asset Overview US Libya 25% Colorado 20% 60 sq.km Area 95/96 6,629sq.km (Sonatrach) Julesburg Basin Ghadames Basin Russia License 61 50% 4,991sq. km TAAS 10% 1,382sq. km JSC Vankor 8% 1,869sq.km Nigeria 17.5% 1,295sq.km OML 205 (Suntera) Sudan 10% 741 km Pipeline Venezuela 203sq.km Car
Slide 14: Major Overseas Projects
Major Overseas Projects Project Carabobo, Venezuela S Significantly low subsurface risk Current Status S 56 wells under production S Two blocks in Orinoco Heavy Oil Belt S Current total production over 26000 S Block Area 383 Sq. Km BOPD S ~ 30 billion barrels of Oil in place from Consortium Partners
Slide 15: Major Overseas Projects (Contd...)
Major Overseas Projects (Contd...) Area 1 Rovuma, Mozambique S OIL & OVL acquired 10% stake in Offshore Key Highlights Mozambique Area 1 in Jan. 2014 S More than 2/3rd of the volume of Initial S Acquisition Cost: USD 2,519 million, Development Phase will be committed (US$ 1,007 million by OIL) befor
Slide 16: Major Overseas Projects (Contd...)
Major Overseas Projects (Contd...) Vankorneft, Russia S OIL jointly with IOCL & BPRL acquired Key Highlights 23.9% stake in Vankorneft, Russia in Oct S Current production ~ 4,28,000 bopd 2016 S No. of Wells on Production: Oil ~ 450, S Acquisition Cost: US$ 2.02 Billion Gas ~ 22 (OIL’s share 33.5%) S
Slide 17: Major Overseas Projects (Contd...)
Major Overseas Projects (Contd...) Taas Yuryakh, Russia S OIL jointly with IOCL & BPRL acquired Key Highlights 29.9% stake in Taas Yuryakh, Russia in Oct 2016 S Current production ~ 22,000 bopd S Acquisition Cost: US$ 1.121 Billion S Existing number of wells: (OIL’s share 33.5%) Producing~43, Shut-i
Slide 18: Strategic strengths
oO “atye ¢feen felines Oil India Limited
Slide 19: Strong In-House Capabilities
Strong In-House Capabilities Infrastructure to Support E&P Activities Vertically Integrated E&P Operations One 2D and two 10 Logging Units 3D Seismic crew 20 Work-over Drilling 20 Drilling Rigs Rigs Seismic API Wireline (2D and 3D) Logging In-House Expertise Production and Storage Facilities Field D
Slide 20: Attractive Cost Structure
Attractive Cost Structure Finding & Development Cost (USD/ BOE) Crude Oil Production Cost (USD/ bbl) 6.3 5.9 18.4 17.8 16.6 5.3 8.7 9.6 10.0 4.2 FY 14 FY 15 FY 16 3.7 Raising Cost Levies 3.0 Natural Gas Production Cost (USD/ MMBTU) 0.4 0.3 0.3 1.3 1.4 1.2 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 Finding
Slide 21: Domestic Reserve Base (2P) as on 01.04.2016
Domestic Reserve Base (2P) as on 01.04.2016 25 Years current production of Crude Oil 42 Years current production of Natural Gas 33 Years current production of O+OEG Total Balance Recoverable Reserves Proved and Developed Reserves – Split by Type Natural Gas (MMTOE) 158 Crude Oil (MMT) 119 70 110 81
Slide 22: Operating and Financial Highlights
Operating and Financial Highlights
Slide 23: Crude Oil and Natural Gas Production
Crude Oil and Natural Gas Production Crude Oil Production (MMT) Natural Gas Production (MMSCM) 2,838 2,722 3.50 3.44 2,626 3.25 1,474 1.60 FY14 FY15 FY16 H1 FY17 FY14 FY15 FY16 H1 FY17 OIL produces about 9% of India’s total Domestic Oil and Natural Gas production 18
Slide 24: Financial highlights
Financial highlights Revenue (Rs. crore) EBITDA (Rs. crore) 11,215 11,020 11,141 5,195 4,991 4,802 3,164 1,503 2,461 1,103 FY14 FY15 FY16 Q1 FY16 Q1 FY17 FY14 FY15 FY16 Q1 FY 16 Q1 FY 17 Net Profit (Rs. crore) EBITDA & PAT Margin (%) 2,981 46 45 44 2,510 2,330 27 743 23 21 494 FY 14 FY 15 FY 16 FY14
Slide 25: Financial highlights
Financial highlights Earnings Per Share (Rs.) Book Value (Rs./ Share) 50 430 42 358 371 39 344 12 8 (in Rs.) FY14 FY15 FY16 Q1 FY16 Q1 FY17 FY14 FY15 FY16 Q1 FY17 Dividend Percentage Dividend Payout (% of PAT) 215 48 200 43 41 160 (in Rs.) FY14 FY15 FY16 FY14 FY15 FY16 20
Slide 26: Strong Liquidity with Low Leveraging
Strong Liquidity with Low Leveraging Net Worth (Rs. Crore) Strong Cash Balance (Rs. Crore) 11744 25841 9594 10085 22302 8917 20708 21498 FY14 FY15 FY16 Q1 FY17 FY14 FY15 FY16 Q1 FY17 Total Debt (Rs. Crore) Debt Equity Ratio 47.2% 9783 41.2% 9199 9347 38.8% 36.2% 8341 FY14 FY15 FY16 Q1 FY17 FY14 FY15
Slide 27: Contribution to Exchequer
Contribution to Exchequer Central Government State Governments (Rs.crore) (Rs.crore) 4,154 1822 1846 1785 3,585 1,218 3,147 509 542 593 1,200 1,008 1,603 1,531 1,420 1,276 1,280 1,253 1,333 854 719 FY 14 FY 15 FY 16 FY 14 FY 15 FY 16 Corporate Tax Cess Dividend & Others Royalty VAT & Others 22
Slide 28: Government Policy and Outlook on Subsidy
Government Policy and Outlook on Subsidy Outlook on Subsidy Total Petroleum Subsidy 1,61,029 P Petrol Prices De-regulated in June 2010 1,39,869 (Rs crore) P Diesel Prices De-regulated in October 2014 P Direct Benefit Transfer Scheme for LPG 72,314 implemented effective Jan 1, 2015. subsidies on Dome
Slide 29: Realized Price for Crude Oil & Natural Gas
Realized Price for Crude Oil & Natural Gas Crude Oil (USD/BBL) Natural Gas (US$/MMBTU) 106.4 4.8 4.7 84.3 4.2 4.0 3.9 3.6 3.6 3.5 3.2 47.1 47.1 46.4 45.3 28.7 29.1 28.8 FY14 FY15 FY16 FY14 FY15 FY16 Gross Realized Price Price Realized after Subsidy Gross Price Price Realized Net Realization after Le
Slide 30: Growth Strategy
oO “atye ¢feen felines Oil India Limited
Slide 31: Growth Strategy
Growth Strategy OIL has aspiration to be an international E&P player with operations at scale in at least two geographical clusters outside India, significantly higher production, reserves and cash flows while being known globally for its capabilities to extract value from mature assets. 15 MMTOE pr
Slide 32: Strategies to Achieve 2030 Aspirations
Strategies to Achieve 2030 Aspirations 1 Reimagine Main Producing Area development to maximise potential 2 Step up exploration and development activities in select Indian basins 3 Build international presence at scale in one or two geographic clusters 4 Pursue selective, profitable diversification i
Slide 33: Technology Innovation/ Improvements
Technology Innovation/ Improvements § Use of advanced techniques have enabled company to maintain production rates in the Upper Assam basin despite majority of the fields being old. § Company deploys a wide array of IOR and EOR to achieve maximum recovery of oil reserves. § Introduced hydro-frac ope
Slide 34: Positive Policy Environment
Positive Policy Environment § Maximising domestic Oil & Gas production is a strategic priority for the Govt., with an aim to reduce import dependence by 10% by 2022. § “Hydrocarbon Vision 2030 for Northeast India” gives strategic importance to the development of Northeast India which is the main ope
Slide 35: Capex Plans
Capex Plans 2016-17 : Rs.4,020 crore 2017-18 : Rs.4,290 crore 10% 9% 16% 10% 19% 23% 34% 36% 21% 22% 2014-15 391 753 706 921 1002 3773 2015-16 429 935 681 1051 527 3622 Survey Exploratory Drilling Development Drilling Capital Equipment Overseas Projects 29
Slide 36: Production Guidance for FY'17
Production Guidance for FY’17 2016-17 Crude oil 3.28 MMT Natural gas 2981 mmscm 30
Slide 37: Conclusion
Conclusion Steady and sustained Growth Sound Financial Health Strong operating track record More than 5 decades of E&P expertise Spreading wings: NE - Pan India - Global Large prospective E&P acreage Pioneer in Pipeline transportation Entry into Offshore/ Deep Water Blocks Entry into discovered and
Slide 38: Thank You
e Thank You © aiacitearteres Oil India Limited