Hindustan Oil

Exploration
Company Limited
Transforming Through Talent and Technology
2016-2017

Piyush Kumar
1792780088
Group G-9B
Company Profile
Hindustan Oil Exploration Company Limited (2016-17)

The very First Oil and Gas

Company Detail Company in private sector

Founded in 1983
Headquarter Vadodara, Gujarat, India
Chairman Sunil Behari Mathur
Revenue ₹4211 Lakhs
Market capitalization 16.67 Billion
Auditor Deloitte Haskins & Sells LLP
Total employees ( Permanent ) 45
Company Profile
• Founded in 1983 as the very First Oil and Gas Company in private sector by late
Shri. H. T. Parekh

• Portfolio of 9 Blocks with discovered resources 5 Onshore (2 North East, 3 Gujarat)

4 offshore (2 West Coast & 2 East Coast)

• Presence in 4 of 6 Producing Basins in India (Mumbai offshore, Cauvery, Cambay &

Assam-Arakan)

• Diverse Investors with Professional Board Debt free balance sheet with funds for
Organic Growth
History of the Company

Dirok (Assam)
gas &
April 2004, the condensate
company commercial sales
acquired 3D and commenced on
During the year 2D seismic data 26 August 2017
1999-2000, they in the Cauvery
enhanced their Basin block
presence in the
commenced Cambay basin of
their Gujarat
operational
activities in the
year 1991
Company
was
incorporated
on
September
22, 1983
Asset Portfolio

• Consist of 9 Oil & Gas blocks of

Discovered Resources
• Portfolio of 9 Blocks with discovered
resources 5 Onshore (2 North East, 3
Gujarat) 4 offshore (2 West Coast & 2
East Coast)
 Shareholding Pattern
Hindustan Oil Exploration Company Ltd SHARES
Industry : Oil Exploration / Allied Services Non Promoter (Institution)
% Share
Non Promoter (Non-Institution)
Ownership Pattern as on 30-Sep-2017 No of Shares Holding
Foreign (Promoter & Group) 5745 0 6%
Indian (Promoter & Group) 0 0
Total of Promoter 5745 0
Non Promoter (Institution) 8187465 6.27
Non Promoter (Non-Institution) 122300079 93.72
Total Non Promoter 130487544 100
Total Promoter & Non Promoter 130493289 100 94%

Key Insights Drawn: The company’s promoters had divested its entire stake in the
Company in 2017.
Vision
• Our vision is to establish and transform 'Resources' to 'Assets', thus generate
shareholder value. It can be summarized as:
 Explore for Oil & Gas;
 Execute to transform Resources to Reserves; and
 Enhance value for all stakeholders by converting Reserves to Revenues
Values
• HOEC believes that good environmental, social, health and safe performance
is an integral part of our business success

• We conduct our business with respect and care for our communities and the
environment in which we operate

• We will be a good corporate citizen of India, and will maximize utilization of

local talent, services and equipment

• Our first priority is to ensure safe, reliable and regulatory compliant

business operations
Principal Business Activities of The
Company
Manpower
• The number of permanent employees (excluding Whole-time Directors) on
the rolls of Company: 45

• Revenue from operations generated per permanent employee is 50.04 lacs

• Total income generated per permanent employee is 84.21 lacs

• The data regarding other category of employees is not available in Annual

Report 2016-17
Board of Directors

Sunil Behari Mathur Non Executive Independent Director/Chairman

Sharmila H. Amin Non Executive Independent Director
P.K. Borthakur Non Executive Independent Director
P. Elango Managing Director
Ramasamy Jeevanandam Whole-time Director and CFO
Professional Management Team
Message from Managing Director
• Assam will continue to remain our top priority during FY 18 and beyond.
Phase 1 of the Assam Dirok Development Project has been completed on 31
March 2017
• HOEC portfolio now consists of 9 assets and all of them have discovered
resources with some upside potential
• Indian Oil Corporation (IOC), our JV partner has agreed to buy all the
condensate produced at the prevailing international market price for crude oil
• HOEC growth strategy is to invest in projects where “Investment to Cash”
cycle is 12 to 18 months. HOEC execution strategy will continue to be “Fast
Track and Low Cost Development”

Key Insights Drawn: The company’s Managing Director is very positive about the growth
from the Assam Dirok Project and the company will keep perusing its strategy of investing
in project with short cash cycle to keep the company a debt-free company with adequate
cash to fund our organic growth.
Highlights of BoD Report
• The lower production has resulted in a reduction in turnover to $ 2,502 lacs for the year in
comparison to $ 2,834 lacs in the previous year. However, the total revenue for the year was $
4,211 lacs as against $ 3,718 lacs in the previous year

• On a standalone basis, the Profit-After-Tax was $ 3,638 lacs as against the profit of $ 349
lacs in the previous year

• Your Directors have not recommended any dividend for the Financial Year 2016-2017

• During the year, the ENI group companies had divested its entire stake in the Company
except for nominal shareholding of 5,745 shares held through Burren Energy India Limited and
has applied for re-classification of its status as public shareholder. The promoters have
declared that they have not pledged any of their shareholding in the Company

Key Insights Drawn: The company’s net profit after tax has shown improvement of 942%
but this increase is not because of operations(-12%) of the company its mainly because of the
other income (+93%) and exceptional item (+463%) like Interest on income tax refund.
Highlights of Management Discussion
and Analysis
• Industry expectation, therefore, is for oil prices to float within a range
of US$ 50 to US$ 60 per barrel and no one talks about three digit oil
prices

• Energy vision of Government of India has four pillars - energy access, energy
efficiency, energy sustainability and energy security and the goal is to
reduce import dependence by 10% by 2022

• Crude Oil Prices (Brent) increased from US$ 42 per barrel in April 2016 to
US$ 52 per barrel in March 2017

• The Company's aggregate production during the FY 2016-2017 was

around 0.15 mmboe (crude oil: 32,690 bbls; gas: 18.79 mmscm) as
against 0.18 mmboe crude oil: 29,864 bbls; gas: 23.26 mmscm) during
the previous year. The decrease in production is predominantly due
to accelerated pressure decline and water breakthrough in existing PY-1
wells
• Revenue from operations of HOEC for the FY 2016- 2017 was $ 2,502 lacs as
compared to $ 2,834 lacs of previous year, a decrease of 12%

• On a standalone basis, the Profit-After-Tax for the Company was $ 3,638

lacs as against $ 349 lacs in the previous year

• Cash flow from operations including the working capital changes was $
2,584 lacs as against $ 5,582 lacs during the previous year. The net increase
in cash and cash equivalents during the financial year is $ 6,596 lacs.

• At the year end, HOEC had cash and cash equivalent of $ 18,527 lacs. Cash
surplus is placed in debt oriented liquid funds and bank deposits as
approved by the Board

• HOEC continued to maintain a sound health and safety record in FY

2016-2017

Key Insights Drawn: The HOEC has recently won two blocks ‐ B 80 (Mumbai offshore)
and Kharem (Arunachal Pradesh) in the Discovered Small Fields (DSF) auction and
company’s management is positive about the growth in business but also sceptical about
the oil prices and the increasing cost of production and is focused on the safety of its
employees and assets.
Deep Industries
2016-17
Company Profile
Deep Industries (2016-17)
Largest Company in India to
Company Detail provide high pressure Natural
Gas Compression Services
Founded in 1991
Headquarter Ahmedabad, Gujarat, India
Chairman Paras S Savla
Market Share 90.12% Market Leader in gas
compression business
Revenue ₹28557 Lakhs
Market capitalization 7.53 Billion
Auditor Dhirubhai Shah & Doshi
Total employees ( Permanent ) 340
Company Profile
• Diversified Oil & Gas company with presence in Oil Field Services and
Exploration & Production incorporated in 1991

• Market leaders in gas compression business in India with an estimated

market share of 90.12%

• More than 2 decades of experience in Oil & Gas with large clients in Public
and Private space

• 1st Mover advantage in Gas Compression and De— hydration segment in

India

• Capacity: 59 Natural Gas Compressors ranging from 180 HP to 1,680 HP

Compression capability of about 5.00 MMSCMD of natural gas

• Recently Credit ratings upgraded to “A” and “A1” for Long term and Short
Term Bank Facilities by CARE Rating
History of the Company

During the year

2008-09, the
Diversified into Oil company entered
& Gas exploration into E & P space
in 2006-07 seeing through forward
the opportunity in integration into
In May 2, 2002, the
the space and gas production
company was
unconventional through CBM and
converted into
energy being the Marginal fields
public limited
company and the future
name was changed
In 1994 the to Deep Industries
company bagged Ltd
contract to
provide High
Pressure Air
Compressors and
Company was into Natural Gas
incorporated Compressors in
on January 1, 1997
1991 as Deep
Roadways
Pvt Ltd
Shareholding Pattern
SHARES
Deep Industries Ltd Indian (Promoter & Group)
Non Promoter (Institution)
Industry : Gas Distribution
Non Promoter (Non-Institution)

Ownership Pattern as on 30-Sep-2017 % Share Holding

Foreign (Promoter & Group) 0
Indian (Promoter & Group) 63.49 29%
Total of Promoter 63.49
Non Promoter (Institution) 7.21
Non Promoter (Non-Institution) 29.3
7% 64%
Total Non Promoter 36.51
Total Promoter & Non Promoter 100
 Asset Portfolio
• Out of 9 blocks - 4 blocks are in
development phase, 1 block in appraisal
phase and rest in exploration phase.
These include 1 CBM block acquired by
our subsidiary company

• The total acreage operated by the

company is over 6,865 sq km
Mission
• To be premier services provider to OIL and GAS industry through the
integration of motivated people, quality environment and innovative
technology.
Vision
• DIL shall become a premier services providing company committed to meet
and exceed the requirement of the customers, employees, contractors and
share holders.

• DIL is focused on deploying fuel efficient, latest equipment in the Oil and
GAS industry.

• Our short-term vision is to focus primarily in the domestic and selective

international market.

• Our long-term vision is to be an integrated service provider.

Core Values
• Financial
Our decision will be made to ensure long term growth for benefit of employees,
customers, and share holders

• Integrity & Honesty

Our decisions will be conducted following the highest standards of ethics, honesty
and personal integrity. This will foster and maintain trust and confidence of our
employees, customers and suppliers.

• Respect for employees, customers & suppliers

Our employees will be developed and motivated to meet the challenges ahead. We
provide our costumers with unsurpassed value-added services. Our relationship with
suppliers will reflect respect, understanding and sound business practices
Core values
• Health, Safety and Environment
Personal safety and employees health is our greatest responsibility, followed
by the protection of our environment and company property.

• Technical
Our competitive advantage is based on continuously improving our processes
and finding innovative solution to the technical challenges in meeting the
needs of our customers
Manpower
• The number of permanent employees on the rolls of the Company: 340 as on 31 st
March, 2017

• Revenue from operations generated per permanent employee is 81.58 lakhs

• Total income generated per permanent employee is 83.99 lakhs

Principal Business Activities of The
Company
Board of Directors
Mr. Paras Savla Chairman & Managing Director

Mr. Rupesh Savla Managing Director

Mr. Dharen Savla Executive Director

Mr. Prem Singh Sawhney Non-Executive Director

Mrs. Renuka Upadhyay Independent Director

Mr. Arun N. Mandke Independent Director

Mr. Kirti V. Joshi Independent Director

Mr. Sanjay H. Parekh Independent Director

Management Team
• The company is Promoter managed along with a team of professional executives
Message from Director
• Directors Report or the Chairman’s message/letter to the shareholders is not
available in Annual Report 2016-2017
Highlights of BoD Report
• The Company’s Standalone revenues from operations increased to
27738.05 Lakhs in the year 2016-17 from 16907.17 Lakhs in 2015-16
showing growth of 64.06 % compared to the previous year, while
Consolidated revenues from operations increased to 27738.05 Lakhs in the
year 2016-17 from 16914.67 Lakhs for the year 2015-16

• Company’s Standalone net profit increased to 7401.71 Lakhs in the

year 2016-17 from 4089.59 Lakhs in the year 2015-16 showing growth of
80.99% as compared to previous year

• Your Directors have recommended final dividend of 1.8/- (18%) per

Equity Share each of 10/- for financial year

Key Insights Drawn: The company’s performance is good in last few years and is expected
to perform better as recent Oil ministry decision to promote local companies participation
will act as a big Boost to the Domestic Oil-Gas Services Industry in India.
Highlights of Management Discussion
and Analysis
• The Oil and Gas sector offers great future opportunities driven by
factors such as vastly unexplored and under explored sedimentary
basins, Unconventional hydrocarbon exploration activities gaining
momentum in India

• Shortages of skilled manpower, technology and equipment in

upstream sector and general low oil & gas price regime may throw
some critical challenges for the sector

• Service income increased from 16907.17 lakhs to 27738.05 lakhs and it

includes Air, Gas Compression & Work Over Operations Services

• Other Income increased from 86.47 Lakhs to 819.71 Lakhs. The Major
increase was due to accounting of Foreign Currency Fluctuation Gain of
619.00 Lakhs
• Operating Expenses has increased from 4006.19 Lakhs to 8449.72 Lakhs. Operating
Expense as a percentage of Operating Income has increased from 23.57% to 29.59%
however the same is well within Industry norms

Key Insights Drawn: The company’s board of Director is happy with the company’s
performance and the changing government policies. There have been immense opportunities
coming in from the various businesses like gas dehydration, drilling rigs and gas
compression which is one of their conventional businesses. So they see a lot of growth and
opportunity coming in.