Slide 1: DNO ASA Corporate Presentation 2nd Quarter / 1st Half Year 2002
DNO ASA Corporate Presentation 20.08.02 2nd Quarter / 1st Half Year 2002
Slide 2: Highlights 2nd Quarter / 1st Half Year 2002 - Operations
Highlights 2nd Quarter / 1st Half Year 2002 Operations • Achieved record production of 23.486 BOPD in 2 Quarter • Further increase of Yemen Production – now 50 % of DNO Group • Group YTD Production > 22.000 BOPD – better than expected • Achieved good operating margins • Approved as Operator in Norwa
Slide 3: Group Production – per Quarter
Group Production – per Quarter 25000 23486 20639 20000 15158 15000 13174 12881 bbl/d 11722 10000 5000 0 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 1st Q. 2002 2nd Q. 2002 • Group production 1st half 2002 better than target
Slide 4: Group Production by Business Area
Group Producton by Business Area 25000 20000 11567 7516 Yemen 15000 3281 bbl/d 3429 3300 10000 2889 6076 7680 Norway 3383 6935 4103 3944 5000 5642 6198 4889 5801 5443 4984 UK 0 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 1st Q. 2002 2nd Q. 2002 • Increased contribution from Yemen
Slide 5: Highlights 2nd Quarter / 1st Half Year 2002 - Financials
Highlights 2nd Quarter / 1st half year 2002 Financials 1st Half Year • Operating Revenue MNOK 826 • EBITDA MNOK 440 * • EBITDAX MNOK 526 • EBIT MNOK 237 * • Net Profit MNOK (43) ** * After MNOK 80 expensed exploration costs & write-down of PL 006C ** After MNOK 125 write-down/loss assoc. company PDR
Slide 6: Business Areas
_ - usiness Areas 20.08.02
Slide 7: Overview Norway
Overview Norway Operator • PL 103B Jotun 7%* Exxon/Mobil • Glitne Field 10% Statoil • PL 203 15% Marathon • PL 148 30% A. Hess • PL 006C 10% A. Hess * Implies Operatorship in PL 103b – now approved by Norwegian authorities
Slide 8: Production Norway
Production Norway 9000 8000 7680 6935 7000 6076 6000 5000 bbl/d 4103 3944 4000 3383 3000 2000 Jotun Field 1000 0 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 1st Q. 2002 2nd Q. 2002 • Glitne shut-down in June due to production restrictions in Norway
Slide 9: 2002 Outlook - Norway
2002 Outlook - Norway • Annual production within target range - 7.000 BOPD • Infill drilling on Jotun – increased production • Harvest on Glitne • Continue to work pro-actively for PL 203 PDO • Evaluate new assets
Slide 10: Overview Yemen
Overview Yemen • Block 32 Tasour (Operator) 41.0% • Block 53 Sharyoof 32.6% • Block 43 (Operator) 73.0%
Slide 11: Production Yemen
Production Yemen 14000 12000 11567 10000 8000 7516 bbl/d 6000 4000 3429 3300 3281 2889 2000 Sharyoof CPF 0 1st Q. 2nd Q. 3rd Q. 4th Q. 1st Q. 2nd Q. 2001 2001 2001 2001 2002 2002 • Sharyoof plateau production achieved in 2nd Quarter
Slide 12: 2002 Outlook - Yemen
2002 Outlook - Yemen • Annual production 9.000 BOPD i.e. better than target • Increase in recoverable reserves • Further drilling on Tasour and Sharyoof • Prepare for Block 43 drilling campaign (1 Q 2003)
Slide 13: Overview UK
Overview UK • Heather (Operator) 100% • West Heather Area (Operator) 55 % * • Solan / Stratmore 3.7% * Farm-in Agreement announced 19th August 2002
Slide 14: Production UK
Production UK 7000 6198 6000 5801 5642 5443 4889 4984 5000 4000 bbl/d 3000 2000 Heather Alpha 1000 0 1st Q. 2nd Q. 3rd Q. 4th Q. 1st Q. 2nd Q. 2001 2001 2001 2001 2002 2002 • Heather 1st Half Year average > 5.000 BOPD
Slide 15: West Heather Agreement
West Heather Agreement Farm-out of 45 % DNO retains Operatorship and 55 % New Partners contribute MUSD 23 to drilling of 2 West Heather wells – 1st well 2nd half of 2002
Slide 16: West Heather Agreement
West Heather Agreement DNO retain 100 % of Heather Main FIeld DNO net P50 reserves within total Heather Area after WH Farm-out – 42 million barrels Production could be extended to 2012
Slide 17: 2002 Outlook - UK
2002 Outlook - UK • Annual production slightly less than 5.000 BOPD • Drilling one West Heather well 2nd Half Year • Continue to evaluate the Thistle Field opportunity
Slide 18: DNO ASA - Corporate Structure January 2002
DNO ASA - Corporate Structure January 2002 DNO GROUP DNO ASA Offshore & Oil & Gas Services DNO DNO Det Norske PDR 37.17 % IOT 100.00 % Britain Ltd. International Oljeselskap AS Clampon 36.00 % Heather (2/4+2/5) 100% Block 32 41.00% Jotun Field 7.000% Solan 205/26a 3.7% Block 43 75.00% Glitne & 210/2
Slide 19: Offshore & Services June 2002
Offshore & Services June 2002 PDR 39.66 % IOT 100.00 % ClampOn 0.00 % • ClampOn sold in June • Contributed with MUSD 2.5 in short term loan to PDR • IOT contributes MNOK 9 to Group EBIT 1st Half 2002
Slide 20: 2002 Outlook – DNO Group
2002 Outlook – DNO Group • Annual production > 20.000 BOPD • Record Revenue, strong EBITDA and EBIT • Investments to maintain production (Norway & Yemen) • Drill one well on West Heather
Slide 21: Key Financials April-June 2002
Key Financials April-June 2002
Slide 22: Financial Highlights 2Q 2002
Financial Highlights 2Q 2002 • Increased operating revenues due to higher production and oilprices, despite USD decline • NOK 51mill. write-down of capitalised license expenses Pl 006C • Strong operating profit • NOK 95 mill. write down of investment in PDR ASA to market value 30.06. (NOK 1,10 per s
Slide 23: DNO Production vs. Brent Oil Price
bbl/d Ja 10000 15000 20000 25000 30000 0 5000 n 01 Fe b M a A r p M r ay Ju n Ju A l u Se g pt O c N t ov D Ja e n c 02 Fe b M a A r pr M il Ju ay n DNO Production vs. Brent Oil Price Ju e ly 0 5 10 15 20 25 30 Brent Oil USD
Slide 24: Income Statement 2Q 2002
Income Statement 2Q 2002 • Strong operating revenue, EBITDA and operating profit GROUP (NOK mill.) 2Q02 1Q02 4Q01 3Q01 2Q01 YTD02 YTD01 Operating Revenues 457 368 271 327 314 826 601 Exploration and Impairment -53 -33 -1 -3 -4 -86 -6 Operating Exp., excl expl & DD&A -155 -145 -152 -142 -132 -299 -26
Slide 25: Quarterly Performance
Quarterly Performance 2Q01 3Q01 4Q01 1Q02 2Q02 Production- and Transp. Cost (NOK mill.) 110 116 117 112 122 Production- and Transp. Cost per bbl. (USD) 10,16 11,88 9,35 6,75 7,03 500 450 400 Operating Revenue 350 EBITDA 300 NOK mill EBIT 250 200 150 100 50 0 2Q01 3Q01 4Q01 1Q02 2Q02
Slide 26: Business Unit Revenue and EBITDA 2Q02
Business Unit Revenue and EBITDA 2Q02 Revenue Per Business Unit EBITDA Per Business Unit NCS NCS UKCS UKCS INT INT Offshore & Offshore & Services Services
Slide 27: Operating Revenue Per Business Area
Operating Revenue Per Business Area Operating Revenue Per Quarter 500 457 450 400 368 314 327 350 287 271 300 NOK mill 250 200 150 100 50 0 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 NCS UKCS INT. IOT Group
Slide 28: EBITDA Per Business Area
EBITDA Per Business Area EBITDA Per Quarter 300 249 250 183 191 200 178 157 NOK mill 150 118 100 50 - 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 NCS UKCS INT. IOT Group
Slide 29: Balance Sheet 2Q 2002 - Assets
Balance Sheet 2Q 2002 - Assets • PDR write-down and sale of ClampOn reduces fin. fixed assets • Higher current assets GROUP Assets Q2 2002 Q1 2002 YE 2001 YE 2000 (NOK mill.) Fixed Assets 1.331 1.453 1.372 632 Financial Fixed Assets 309 475 485 495 Intangible Assets 146 148 150 128 Total Fixed Asset
Slide 30: Balance Sheet 2Q 2002 – Shareholders’ Equity and Liabilities
Balance Sheet 2Q 2002 – Shareholders’ Equity and Liabilities • Maintaining 40% equity ratio • NOK 96 mill. repayment of interest bearing debt • Reduction other short-term debt due to lower tax provisions DNO Group GROUP Shareholders' Equity and Liabilities Q2 2002 Q1 2002 YE 2001 YE 2000 (NOK mill.)
Slide 31: Cash Flow 2Q 2002
Cash Flow 2Q 2002 • NOK 117 mill. tax payments • Lower investment in 2Q02 •• Reduction Click toof edit Masterdebt interest-bearing text styles – Second level • Third level (NOK mill.) 2Q02 1Q02 4Q01 3Q01 2Q01 YTD02 YTD01 – Fourth level Cash Flow from Operations 96 -14 109 170 140 82 355 » Fifth leve
Slide 32: Key Figures 2Q 2002
Key Figures 2Q 2002 GROUP 2Q02 1Q02 4Q01 3Q01 2Q01 Yr 01 Yr 00 Earnings per Share NOK -1,34 0,49 0,61 0,83 0,46 2,64 1,15 EBITDA per Share NOK 4,95 3,78 2,31 3,61 3,54 12,48 5,57 EBITDA Margin % 54,5 51,8 43,4 55,9 56,7 53,0 36,2 EBIT Margin % 31,5 25,2 7,5 38,3 39,1 30,6 18,0 ROACE * % -14,5 8,6 10