Nostrum Oil & Gas Plc · LSE:NOG
Nostrum Oil & Gas — FY2018 Earnings Presentation
18 slides from Nostrum Oil & Gas's earnings presentation, Mar 25, 2019
Slide 1: FY 2018 Results Presentation
FY 2018 Results Presentation
Slide 2: FY 2018 Financial Results
FY 2018 Financial Results Stable cash flow during FY 2018 1 US$231m EBITDA1 from 29,516 boepd of sales volumes at a 59% margin 2 Cash & equivalents2 of US$122m and net debt3 of US$1,008m as at 31 December 2018 3 Further reduction in fixed cost base with full year opex of US$50m4 (12% reduction) and
Slide 3: Snapshot of key figures from FY 2018
Snapshot of key figures from FY 2018 Control of costs during year of operational challenges Production stabilised during H2 2018 [kboepd] Production after treatment Sales volumes • Average daily production stabilised during H2 2018 at above 30kboepd 40.4 39.0 39.0 37.8 • 2019 average daily productio
Slide 4: Liquidity management in 2019
Liquidity management in 2019 Focus on capital preservation Capital expenditure Hedging programme • Two rig drilling programme for 2019 • Currently no hedges in place ➢ Six wells = c.US$70m • Company will assess market conditions and look at options for hedging for 2019 • Both rigs currently in opera
Slide 5: Cash bridge to YE 2019
Cash bridge to YE 2019 Stable liquidity position at US$60 / bbl oil with cash flow from existing wells 28kboepd of sales volumes @ US$60/bbl Only 2018 wells Coupon payments in included Q1 / Q3 190 85 Two rig drilling programme Two wells currently 35 being drilled in Northern Area 92 122 100 FY 2018
Slide 6: Ryder Scott reserves audit
Ryder Scott reserves audit 16% reduction in Nostrum 2P reserves 2018 production 2018 operational issues Future drilling schedule Water ingress on flanks of Biski NE reservoir during 2018 Deferral of drilling 31,254 boepd Downgrade of Mullinski NE 2P schedule moved some average daily reserves to 2C p
Slide 7: Overview of Chinarevskoye field
Overview of Chinarevskoye field Fields within a field North North-East Reservoirs Reservoirs Frasnian Biski / Afoninski NE Bashkirian Vorobyovski Tournaisian NE / W Mullinski NE Mullinski N Ardatovski NE Mullinski S • No current reserves • 75 wells drilled since 2007 with no dry • Successful discove
Slide 8: Ryder Scott reserves audit [cont’d]
Ryder Scott reserves audit [cont’d] Summary of reserve revisions by reservoir and categorisation Audited 2P reserves (2018) 2018 Other changes Audited 2P reserves (2019) Reservoir Unit Proven Probable Total Production Proven Probable Total Proven Probable Total Comments Reduction in areas where wate
Slide 9: An infrastructure hub in north-western Kazakhstan
An infrastructure hub in north-western Kazakhstan RUSSIA SAMARA GTF / OTU Chinarevskoye ORENBURG 17km gas Crude export Ural Oil & Gas Nostrum 100% owned field pipeline Nostrum oil / condensate pipeline pipeline (KazTransOil) Darinskoye Nostrum gas pipeline 120km liquid Nostrum access to offtake (UOG
Slide 10: Key focus areas for 2019
Key focus areas for 2019 1 • Maintain production above an average of 30,000 boepd from existing wells Production • Bring additional appraisal wells on line during 2019 to start to build production • Further appraise Northern Area discoveries to fully assess potential for future development and produ
Slide 11: 2018 Financial Results
2018 Financial Results > S nostrum
Slide 12: Financial Overview – FY 2018
Financial Overview – FY 2018 US$m FY 2017 FY 2018 Revenue 405.5 389.9 EBITDA1 231.6 231.3 Profit before tax 26.0 (92.2) Current income tax expense (13.9) (12.3) Deferred income tax expense (36.0) (16.3) Net income (23.9) (120.7) Earnings per share (US$c)2 (0.1) (0.7) Capital expenditure3 (191.5) (17
Slide 13: Leverage ratio
Balance Sheet Summary Highlights Gross debt / net debt 10.0x Gross Debt / LTM EBITDA • US$122m cash & equivalents1 8.0x Net Debt / LTM EBITDA Leverage ratio • Successful refinancing of remaining bond debt with no maturities until 6.0x 4.9x 4.7x 4.9x 4.4x 4.1x 4.4x 2022 4.0x 2.0x - FY 2016 FY 2017 FY
Slide 14: Supporting materials
Supporting materials > S nostrum
Slide 15: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 15
Slide 16: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 16
Slide 17: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 17
Slide 18: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESEN