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The ratings and research agency, India Ratings & Research (Ind-Ra) expects revenues of Hindustan Oil Exploration Company (HOEC) to increase by ₹250 crore to ₹300 crore in 2023-24, thanks mainly to the B-80 oil and gas field in the Bombay High going into production.
Also, the company owns two facilities (‘floating storage unit’ and an ‘mobile offshore production unit’) that are rented out. The rental income would also boost revenues and profits, the rating agency said today.
For the nine months ended December 31, 2022, HOEC reported turnover of ₹383 crore (₹156 cror) and EBIDTA of ₹177 crore (₹78 crore)
Ind-Ra expects 2023-24 EBIDTA to improve by ₹160-200 crore.
In the medium term, “Ind-Ra expects the revenues to improve to ₹800 crore to ₹900 crore, with the EBITDA margins improving to ₹450 crore to ₹500 crore annually, with the full ramp-up in the B-80 volumes and the higher realisation of its gas.”
Participatory interest
HOEC owns participatory interest in exploratory and production oil and gas assets across four basins in Assam (five projects), Mumbai Offshore (one project), Khambhat Gujarat (three projects) and Cauvery Offshore (two projects).
Further, the company’s subsidiary Hindage Oilfield Services Ltd (HOSL) owns the floating storage and offloading facility and a single-point mooring system; another wholly owned subsidiary, Geopetrol International owns the mobile offshore production unit.
HOEC also has a 30 per cent participatory interest in the Kharsang field of Arunachal Pradesh.
The company won the B-80 field in the Arabian sea through a government auction of ‘discovered marginal fields’ in 2015. It started commercial production from D1 and D2 wells of B-80 (in which it has 60 per cent participating interest), in November 2022.
However, due to a few technical glitches, the company was not able to ramp up production to the planned 4,000 barrels of oil and 15 million cubic feet of gas per day. Ind-Ra notes that the company is currently pumping out 1,250 barrels of oil and 11.5 million cubic feet of gas.
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