Hindustan Oil Exploration Company Limited – Investor Presentation Summary

Key Operational Highlights

  • Gross Production (BOEPD): Q2 FY27: 5,988 | Q2 FY26: 4,789 | H1 FY27: 5,405 | H1 FY26: 5,576
  • Net Production (BOEPD): Q2 FY27: 1,963 | Q2 FY26: 2,017 | H1 FY27: 1,907 | H1 FY26: 2,396
  • Key drivers: Workover completed on 4 wells in Kharsang, oil production ramped up 2x in Kharsang, production constraints due to evacuation infrastructure limitations in Dirok, and crude sales dispute with HPCL affecting revenue recognition

Segment-wise Performance

B80 Offshore:

  • Q2 FY27 Production: Oil: 153 Barrels/day, Gas: 1.07 Mmscf/day
  • Q1 FY27 Production: Oil: 270 Barrels/day, Gas: 1.82 Mmscf/day
  • Average Realization: ~$16.5/mmbtu (Q2FY27)

PY1 Offshore:

  • Average Realization: ~$7.0/mmbtu (Q2FY27)

Dirok Onshore:

  • Q2 FY27 Production: 4,684 BOEPD
  • Q1 FY27: Condensate: 277 Barrels/day, Gas: 15.3 MMscf/day
  • Q2 FY27: Condensate: 384 Barrels/day, Gas: 22.1 MMscf/day

Kharsang Onshore:

  • Q2 FY27 Production: 759 BOPD (Gross)
  • Q2 FY27: Oil: 681 Barrels/day, Gas: 0.44 Mmscf/day
  • Q1 FY27: Oil: 655 Barrels/day, Gas: 0.16 Mmscf/day

Palej Onshore:

  • Q2 FY27 Production: 70 BOEPD

Asjol Onshore:

  • Q2 FY27 Production: 9 BOEPD

Financial Highlights

Consolidated Financials (INR Crore):

  • Revenue: Q2 FY27: ₹151.78 | Q1 FY27: ₹124.01 | H1 FY27: ₹275.78 | H1 FY26: ₹410.81
  • EBITDA: Q2 FY27: Not explicitly stated | H1 FY27: ₹63.2 (5% growth)
  • PAT: Q2 FY27: ₹18.86 | Q1 FY27: ₹6.24 | H1 FY27: ₹25.10 | H1 FY26: ₹46.70
  • EPS: Q2 FY27: ₹1.43 (Basic) | H1 FY27: ₹1.90 (Basic)
  • Margins: Not explicitly stated
  • YoY comparison: H1 FY27 Revenue down 33%, PAT down 46% compared to H1 FY26
  • Drivers of financial performance: Decrease in stock of crude oil and condensate (₹59.11 Cr in H1 FY27), profit petroleum/revenue sharing to GOI (₹37.40 Cr in H1 FY27), and impact of HPCL crude sales dispute

Geographical Revenue Split

  • Domestic vs Export: Not specified
  • Regional Breakdown: Not specified

Balance Sheet Snapshot

  • Net Debt/Equity: Not specified
  • Reserves: Not specified
  • Current Assets/Liabilities: Not specified
  • Working Capital/Leverage Metrics: Not specified
  • Financial Health Insights: Not specified

Capex & Cash Flow Health

  • Capital Expenditure: Estimated capex for B80 workover and 3 new wells: USD 65 million in FY27
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Net Debt Movement: Not specified
  • Investment Rationale: Focus on production enhancement, workover operations, and new well drilling across assets

Strategic & R&D Initiatives

  • Investments in Innovation: Modification of export gas compressor in B80 to reduce suction pressure from 30 bars to 13 bars, installation of Thermic Fluid Heater in Palej increasing production by 20%, introduction of Sucker Rod Pumps planned
  • Expected impact on growth: Targeting 2x production in Palej with new Sucker Rod Pumps in Q3 FY2026-27
  • Strategic Rationale: Expanding production capacity, optimizing existing assets, and developing new DSF blocks (B15 and B174)

Industry Trends & Business Environment

  • Macro/Industry Trends: Ongoing challenges in gas evacuation infrastructure, crude quality disputes with refiners, regulatory extensions for PSCs (CB-ON/7 granted 10-year extension)
  • Impact on Company: Production below potential due to lack of evacuation routes, delayed investments due to revenue holding from HPCL dispute, need for local gas sales discussions in Kharsang

Management Commentary & Growth Outlook

  • Strategic Outlook: Focus on resolving evacuation constraints, executing drilling campaigns, and developing DSF blocks
  • FY Guidance: Not explicitly stated
  • Market Share Targets: Not specified
  • Risks and Opportunities: Evacuation infrastructure limitations, crude quality disputes, regulatory approvals for PSC extensions and amendments

ESG Updates

  • Not specified

Digital Transformation

  • Not specified