Earnings Presentation Quarterly Results Q3 FY17

Transcription

1 2017 Cairn India Limited Earnings Presentatin Quarterly Results Q3 FY17 9 th February, 2017

2 2 Disclaimer This material cntains frward-lking statements regarding Cairn India and its affiliates, its crprate and business strategies and plans, future financial cnditin and results f peratins. All such frward-lking statements are based n the management's assumptins and beliefs in the light f infrmatin available t them at this time. These frward-lking statements are by their nature subject t significant risks and uncertainties; and actual results, perfrmance and achievements may be materially different frm thse expressed in such statements. Factrs that may cause actual results, perfrmance r achievements t differ frm expectatins include, but are nt limited t, regulatry changes, future levels f industry prduct supply, demand and pricing, weather and weather related impacts, wars and acts f terrrism, develpment and use f technlgy, acts f cmpetitrs and ther changes t business cnditins. Cairn India undertakes n bligatin t revise any such frward-lking statements t reflect any changes in Cairn India's expectatins with regard theret r any change in circumstances r events after the date heref. Unless therwise stated, the reserves and resurce numbers within this dcument represent the views f Cairn India and d nt represent the views f any ther party, including the Gvernment f India, the Directrate General f Hydrcarbns r any f Cairn India s jint venture partner. All data pints in the presentatin are fr the perid ended 31 st December 2016, unless therwise specified.

3 3 Agenda Accmplishments Against Strategic Pririties Grwth Enablers Operating Perfrmance Financial Perfrmance Crprate and Regulatry Update Sudhir Mathur Acting CEO Suniti Bhat Directr - Oil & Gas Pankaj Kalra Deputy CFO Sudhir Mathur Acting CEO

4 4 We have successfully delivered n ur 5 Pint Strategy which has psitined us t mve ahead with grwth pprtunities 4 Psitive Free Cash Flws EBITDA 11 billin (Highest in last 6 quarters) PAT 6 billin Cre fields cntinue t generate cash Scheduled maintenance shut dwn in Rajasthan successfully cmpleted in Nv 2016 Prductin kbepd Opex RJ water fld at USD 4.3/be; Blended at USD 6.3/be Optinality fr Grwth Develpment - RDG, Aishwariya and Bhagyam plymer, Barmer Hill, Satellite fields Explratin - Rajasthan, Palar, KG Offshre Resilience Cash balance f 260 billin (US$ 3.8 billin) Wrld class resurce base with significant ptential upside Unique Leverage Gelgy, technlgy, peple, strng partnerships and financial discipline

5 Pre develpment activities n track t kick ff investment cycle fr mnetizing resurce base f mre than 1 Billin Be 5 RDG (EUR 86 mmbe) 26% increase in gas EUR Phase 1-40 t 45 mmscfd by Q2 FY 18 Phase mmscfd f gas and 5 kbepd f cndensate by H1 CY 19 Aishwariya Barmer Hill (EUR 30 mmbbls) >25% reductin in capex t US$ 220 millin Stage 1 - Prductin t start in Q1 FY 18 Stage 2 - Prject executin expected t begin in FY 18 Aishwariya Plymer (EUR 15 mmbbls) FDP submitted t the JV in Oct 2016; technical discussins nging Plymer injectivity test planned fr Q4 FY 17 IRR f 20% even at Brent assumptin f US$ 40/bbl Bhagyam Plymer (EUR 45 mmbbls) Revised FDP will be submitted t the JV in Q4 FY 17 Plymer injectivity test started in Oct 2016; results as per expectatins IRR f 15% even at Brent assumptin f US$ 40/bbl

6 6 Explratin activities cntinue t expand resurce prtfli Rajasthan Effrts are n integratin f all available data fr identificatin f high impact new plays Prspects are being firmed up fr explratin drilling in FY18 Prcessing f 3D seismic data cmpleted fr Air Field Suth area and DP Palar-Pennar 3 well explratry drilling prgram is cmmencing in February 2017 The drilling prgramme is planned t be cmpleted in April 2017 KG Offshre Envirnmental clearance prcess prgressing n track Identified fur prspects thrugh seismic studies Cntinue t engage with MPNG fr license extensin beynd Mar 2016 and with MD fr apprval t drill explratin wells Drilling f explratin wells during next feasible weather windw under active cnsideratin

7 Prductin levels in line with expectatin; Mangala EOR cntinues excellent perfrmance 7 181,818 ~55 ~ ~48% Grss Prductin (bepd) Prductin frm Mangala EOR (kbpd) Plymer injectin in Mangala (kblpd) RJ Water-fld Opex (US$/be) Recvery Rate in Ravva Rajasthan Offshre Assets Planned maintenance shut dwn at MPT successfully Grss prductin in Ravva at 18,172 bepd cmpleted Cntinue t target incremental pprtunities Grss prductin f 14.2 mmbe such as gas lift ptimizatin, additin f new Average prductin rate f 154,272 bepd znes, netwrk ptimizatin Mangala EOR adds ~55 kbpd Well interventin prgram planned in Q4 RDG Gas vlumes at 21 mmscfd Facility uptime f 99.9% Satellite Fields prduce ~3.7 kbpd Grss prductin in Cambay at 9,375 bepd Reservir management including prductin ptimizatin Cntinued prductin ptimizatin helps in Bhagyam and Aishwariya drive perfrmance ffsetting natural decline All 15 new wells brught nline in RDG Phase-1 Facility uptime f 99.8% Facility uptime f ver 99%

8 Higher Brent cupled with lwer discunt has driven higher price realizatin while pex cntinues t be cmpetitive 8 Higher price realizatin Brent price up by 8% QQ, verall realizatin at US$ 46.0/be RJ discunt t Brent at US$ 3.4/bbl, dwn frm 9% t 7% QQ Rajasthan water-fld (WF) perating cst/be cntinues t remain lw RJ water-fld pex at US$ 4.3/be in Q3, up frm US$ 3.9/be in Q2 due t lwer vlumes n accunt f scheduled maintenance shut dwn Rajasthan plymer fld perating cst/be belw guidance Blended cst increased frm US$ 5.8/be t US$ 6.3/be due t scheduled maintenance shut dwn Plymer injectin maintained at 400 kblpd ~7% reductin in pwer cst thrugh higher captive pwer generatin

9 9 EBITDA fr Q3 FY 17 is the highest in last 6 quarters INR-billin Q3 FY17 Q2 FY17 q--q (%) Q3 FY16 y--y (%) PAT Variance vs Q2 FY17 (INR bn) Net Revenue % % EBITDA % % Other Incme (2%) % DD&A (7.3) (7.8) (7%) (10.1) (28%) Frex Gain/(Lss) (0.8) 0.6 NA (0.5) 71% Tax (1.7) (0.6) 190% 0.2 NA PAT (22%) % EPS-INR (diluted) (22%) % Cash EPS-INR (4%) % Nte: EBITDA includes frex gain/(lss) n perating activities Key Highlights 5% increase in Revenue QQ; increase in Brent price 3% increase in EBITDA QQ; impact f higher revenue 7% decrease in DD&A QQ; impact f lwer prductin vlume 22% decrease in PAT QQ; impacted by frex lss Net capital expenditure f US$ 3 mn; 60% in develpment Grss Cntributin t Exchequer f 31 bn Strng balance sheet with Cash and cash equivalents f 260 bn PAT Q2FY17 EBITDA Other Incme (Net) DD&A Frex Oil Price Realizatin ($/bbl) Tax Q3 FY17 Q2 FY17 q--q (%) Brent % Rajasthan % Ravva % CB/OS % PAT Q3FY17

10 10 Crprate and Regulatry Update Merger update The prpsed merger f Vedanta Limited and Cairn India was apprved by all sets f sharehlders in September 2016, and we expect the transactin t cmplete in the first quarter f CY2017 Rajasthan PSC extensin The PSC extensin writ is sub judice in the Hn ble High Curt f Delhi RJ crude exprt writ Appeal filed befre the Divisin Bench f the Delhi High Curt

11 Q&A 11