Dno Asa Class A · OSL:DNO
Dno Asa Class A — Q3 2017 Earnings Presentation
16 slides from Dno Asa Class A's earnings presentation, 2017
Slide 1: Third Quarter 2017 Interim results presentation
Third Quarter 2017 Interim results presentation
Slide 2: Corporate overview and operational highlights
Corporate overview and operational highlights Page 2
Slide 3: Corporate overview – Q3 2017 and year-to-date
Corporate overview – Q3 2017 and year-to-date • DNO’s operations and investment activity in Kurdistan region of Iraq continue uninterrupted • Company is most active driller in Kurdistan with three rigs deployed and 15 wells in 2017 across three operated fields in various stages of production, develo
Slide 4: Q3 2017 operational highlights
Q3 2017 operational highlights • Of operated production of 115,200 barrels of oil equivalent per day (boepd) in Q3 2017, Kurdistan represented 110,500 barrels of oil per day (bopd) and Oman 4,700 boepd • Company Working Interest (CWI) production averaged 74,800 boepd during Q3 2017 • Completed drill
Slide 5: Q3 2017 financial highlights
Q3 2017 financial highlights • Revenues of USD 73 million in Q3 2017 • USD 556 million recognized as other income in Q3 2017 following Kurdistan receivables settlement • Resulting in operating profit of USD 469 million in Q3 2017 • Exited Q3 2017 with cash balance of USD 399 million (USD 261 million
Slide 6: Kurdistan receivables settlement
Kurdistan receivables settlement • Receivables settlement agreed with Kurdistan Regional Government in August 2017 covering past unpaid exports • Following which DNO was assigned Government’s 20 percent interest in Tawke license, raising Company’s stake to 75 percent • DNO also to receive three perc
Slide 7: Peshkabir update
Peshkabir update • Peshkabir-3 well drilled and undergoing extended production tests across horizontal section of more than 1.2 kilometers of Cretaceous and Jurassic reservoir • First oil zone at toe of well flowed more than 3,000 bopd on a 64-inch choke • Nine other oil zones and one gas zone ident
Slide 8: North Sea activity
North Sea activity • DNO holds stakes in 11 exploration and appraisal licenses, of which seven on Norwegian Continental Shelf (NCS) and four on UK Continental Shelf (UKCS) • Actively pursuing additional NCS stakes, including producing assets • Applied for Norway’s Awards in Predefined Areas (APA) li
Slide 9: Financial review
Financial review Page 9
Slide 10: DNO financial results – key figures
DNO financial results – key figures Revenue Netback Operating profit USD million USD million USD million 90 70 500 469 82 80 77 73 60 55 55 400 70 50 60 300 49 40 50 42 200 40 30 26 25 30 100 20 28 20 13 9 10 0 10 -1 -28 0 0 -100 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017
Slide 11: Financial summary
Financial summary USD million Q3 2017 Q2 2017 Q3 2016 YTD 2017 YTD 2016 Revenue 73.0 81.7 48.8 231.3 159.6 Cost of goods sold -79.4 -35.7 -29.1 -145.1 -91.8 Gross profit -6.4 45.9 19.8 86.2 67.9 Expensed exploration -5.9 -1.5 0.6 -8.9 -19.0 Administrative expenses -12.0 -6.9 -6.9 -23.9 -21.6 Other o
Slide 12: Investment program
Investment program Annual operational spend USD million Capex Expex Lifting 200 186 161 150 125 100 50 0 2015 2016 YTD 2017 • Operational spend at end-Q3 2017 stood at USD 186 million, of which USD 102 million was capex, USD 75 million lifting costs and USD 9 million exploration expenses • Capex for
Slide 13: YTD Q3 2017 cash flow
YTD Q3 2017 cash flow USD million 600 500 -102.4 -29.2 400 269.5 300 200 399.0 261.1 100 0 Cash at end-2016 Cash from operations Exploration & Tax & finance Cash at end-Q3 2017 development investments • Strong operational cash flow of USD 270 million through end-Q3 2017 (USD 99 million during full-y
Slide 14: Capital structure
Capital structure Cash deposits Financial assets Equity ratio USD million USD million Percent 450 80 70 399 400 381 70 68 60 363 60 350 60 50 300 43 266 261 50 41 43 40 250 40 35 40 200 30 30 150 22 22 20 20 20 100 50 10 10 0 0 0 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017
Slide 15: Important notice
Important notice This presentation (the “Presentation”) has been prepared and delivered by DNO ASA (“DNO” or the “Company”). Copyright of all published material including photographs, drawings and images in this document remains vested in DNO and third party contributors as appropriate. Accordingly,
Slide 16: Slide 16