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Hindustan Oil Exploration Company
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Hindustan Oil Exploration Company Limited (HOEC) is a participant in various oil and gas blocks/fields which are in the nature of joint operation through Production Sharing Contracts (PSC) entered by the Company with Government of India along with other entities. The Company at present, is engaged in the exploration, development and production of hydrocarbons crude oil and natural gas in India, both onshore and offshore.
Apart from these, the Company provides geological and geophysical services relating to the exploration of oil and natural gas and other oil field services. The company has a 100% subsidiary namely HOEC Bardahl India Ltd which is engaged in marketing of fuel or engine additives.
The company has participating interest in seven oil/gas fields in India (in Cambay basin, Cauvery basin and Assam Arakan basin), which are in varying stages of exploration, development and production: AAP-ON-94/1 in Assam; CY-OS/90-1 (PY-3) and PY-1 in Cauvery, and Asjol, CB-OS-1, CB-ON-7 and North Balol in Cambay. Production of crude oil from PY-3 Field located in Cauvery Basin is the principal source of the company's production.
Hindustan Oil Exploration Company Ltd was incorporated on September 22, 1983. The company commenced their operational activities in the year 1991 with the Government of India announcing the fourth round of exploration bidding for private sector participation.
In the year 1991-92, the company signed a MoU with Petronas Carigali, Malaysia, to conduct joint studies on basins/blocks of mutual interest. In February 1993, the company, along with Albion (India), US, signed a production sharing contract with the Ministry of Petroleum and ONGC, as an operator for a block offshore the coast of Andhra Pradesh with a 35% share in the block.
In March 30, 1992, HOEC Bardahl India Ltd became the subsidiary of the company. During the year 1999-2000, they enhanced their presence in the Cambay basin of Gujarat by signing two more exploration blocks. During the year 2000-01, Production Sharing Contracts were signed by the company for three exploration blocks namely CB-ON-2, CB-ON-7 and CY-OSN-97/1(NELP).
During the year 2001-02, exploration work was commenced in block CB-ON-7 (Palej) and CB-ON-2 (Tarapur) Block in Gujarat. In February 2003, the Government of Gujarat granted mining lease for Dholasan & Kanawara fields. In April 2004, the company acquired 3D and 2D seismic data in the Cauvery Basin block located offshore East Coast of India.
In the year 2005, Burren Shakti Ltd and Burren Energy India Ltd, wholly owned subsidiary of Burren Energy plc, acquired 26% controlling stake in the company from Unocal. Burren Energy plc is a London based exploration and production company, having core producing assets in the Caspian state of Turkmenistan, the Republic of Congo and Egypt.
During the year 2006-07, the company executed an agreement with PPN Power Generating Company, an independent power plant in the State of Tamil Nadu operating a 330.5 MW power plant, for the supply of upto 51,000 MMBTU per day of natural gas from the company's PY-1 Cauvery Basin gas field.
In February 2008, Burren Energy plc was acquired by ENI UK Holdings plc which is a subsidiary of ENI spa, Italy. In December 2008, the company has been awarded RJ-ONN-2005/1, RJ-ONN-2005/2 under the New Exploration Licensing Policy Round VII (NEPL VII) by the Government of India.
During FY 2008-09, Company acquired 3D Seismic Data; it installed and constructed PY-1 Offshore Production Facilities (Platform & Pipeline); installed PY-1 Onshore Facilities and drilling of two Development Wells and establish Phase I plateau production.
During the year 2009-10, Company commissioned commercial production of natural gas from PY-1 Field on November 27, 2009. It commissioned drilling of the first appraisal well, Dirok-2 field, in Assam on July 20, 2010.
During the year 2012-12, Company drilled multi-lateral well, Surya' in PY-1 Field and thereby, commissioned an independent 3rd Party reserve certification to re-assess the potential of PY-1 Field. The Company implemented various cost optimisation initiatives in PY-1 Field including, de-hiring of chopper services, de-hiring of warehouse and explosive storage yard, undertaking in-house maintenance of critical equipment, tele linking platform to control centre through a low cost yet proven and reliable solution, phasing out expatriates at PY-1 site and improvised rotational work pattern for effective manpower utilization.
During the year 2017-18, a development expenditure of Rs 4,811.36 lacs was incurred for the gas development project at Assam, PY-1 drilling campaign and B80 development. An expenditure of Rs 814.72 lacs was incurred to secure the PSC for the adjoining area of Block CB-ON/7 during the year.
During the year 2018-19, Company acquired the entire share capital of Geopetrol International Inc. (GPII) and became a wholly owned step-down subsidiary of Company.
The Company commissioned Hollong Modular Gas Processing Plant completed 200,000 hours of LTI free operation. It completed two subsea well drilling campaign in Mumbai Offshore in March-April 2020. Post installation of Single Point Mooring (SPM) system and mobilisation of the Floating Storage and Offload (FSO) vessel, the pre-commissioning of the processing facilities at KGB - Offshore Installation such as separators, gas dehydration unit, and compressors etc. was started. Gas produced from well D-2 was processed to meet the specifications and packed into ONGC pipeline from May 31, 2022 onwards. Subsequently, Gas Transportation Agreement (GTA) between ONGC and HOEC was executed on June 03, 2022. Post meeting the gas specification, sales to GSPC has commenced effective from June 04, 2022.
Hindustan Oil Exploration Company share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Hindustan Oil Exploration Company indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Hindustan Oil Exploration Company is valued compared to its competitors.
Hindustan Oil Exploration Company PE ratio helps investors understand what is the market value of each stock compared to Hindustan Oil Exploration Company 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Hindustan Oil Exploration Company evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Hindustan Oil Exploration Company generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Hindustan Oil Exploration Company in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Hindustan Oil Exploration Company shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Hindustan Oil Exploration Company compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Hindustan Oil Exploration Company over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Hindustan Oil Exploration Company helps investors get an insight into when they can enter or exit the stock. Key components of Hindustan Oil Exploration Company Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Hindustan Oil Exploration Company shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Hindustan Oil Exploration Company ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Hindustan Oil Exploration Company provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Hindustan Oil Exploration Company highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Hindustan Oil Exploration Company .
The balance sheet presents a snapshot of Hindustan Oil Exploration Company ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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