Slide 1: Q1 2021 Interim Results Presentation
Q1 2021 Interim Results Presentation
Slide 2: Operational and financial highlights
Operational and financial highlights Cover photo: Erecting 40 meter communication towers at Tawke and Peshkabir fields, Kurdistan region of Iraq. Page 2
Slide 3: Return to profitability
Return to profitability • DNO returned to profitability during the first quarter of 2021, Operating profit USD million reporting operating profit of USD 66 million 66 • First quarterly operating profit since the onset of the pandemic, 44 driven by solid production, cost optimizations and higher oil
Slide 4: Projecting high activity
Projecting high activity • In Kurdistan, 12 Tawke license wells budgeted in 2021, of which nine in 2021 Tawke license operated production Tawke field and three in Peshkabir field bopd 113 100 113 700 110 900 112 000 • Following a strong first quarter, guiding full-year 2021 gross operated Tawke lice
Slide 5: Q1 2021 operational highlights
Q1 2021 operational highlights • Gross operated Tawke license production averaged 112,000 bopd in Q1 2021 (110,200 bopd in Q4 2020) of which 84,000 bopd net to DNO’s interest (82,600 bopd in Q4 2020) • North Sea assets contributed another 15,200 boepd in Q1 2021 (15,300 boepd in Q4 2020) • Totaling
Slide 6: Q1 2021 financial highlights
Q1 2021 financial highlights • Q1 2021 revenues of USD 170 million, slightly down from USD 174 million in Q4 2020 due to lower North Sea cargo liftings • USD 66 million operating profit in Q1 2021, reversing operating losses in previous four quarters • In Q1 2021, Kurdistan initiated principal payme
Slide 7: Kurdistan operations
Kurdistan operations Turkey Iran Tawke field • Kurdistan continues to drive DNO operations and DNO continues Peshkabir field to drive Kurdistan oil sector Tawke license • Q1 2021 Tawke license gross production of 112,000 bopd, of which Kurdistan Peshkabir field contributed 61,400 bopd (56,300 in Q4
Slide 8: North Sea operations
North Sea operations Marulk Alve Gjøk Iris/Hades • Q1 2021 North Sea average net production of 15,200 boepd • Announced Røver Nord discovery (DNO 20 percent interest) • Norwegian petroleum tax incentives driving investment plans, with Brasse, Iris/Hades, Alve Gjøk, Trym South and Orion/Syrah candida
Slide 9: Financial review
Financial review Page 9
Slide 10: DNO financial results – key figures
DNO financial results – key figures Revenues Netback Operating profit USD million USD million USD million 300 350 100 275 66 310 44 300 50 250 206 250 0 200 214 -12 174 170 -14 163 200 -50 150 150 135 135 -100 -81 100 101 72 100 -150 50 -200 50 13 -208 0 0 -250 Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q4 Q1 Q4
Slide 11: Financial summary
Financial summary USD million Q1 2021 Q4 2020 Q1 2020 Full-year 2020 Revenues 169.8 174.2 205.6 614.9 Production costs -52.4 -51.8 -58.6 -217.3 Movement in overlift/underlift 19.6 -7.6 -1.1 -11.3 Depreciation, depletion and amortization -53.0 -79.8 -107.5 -361.4 Cost of goods sold -85.8 -139.1 -167.
Slide 12: Ramping up operational spend
Ramping up operational spend Annual operational spend Projected 2021 spend by quarter USD million USD million Capex Abex Expex Opex Capex Abex Expex Opex 900 900 786 800 700 800 700 237 700 600 511 210 600 500 500 187 400 217 130 400 300 90 300 205 201 101 169 200 339 200 125 270 100 162 100 0 2019
Slide 13: Strong cash balance
Strong cash balance • Solid operational cash flow of USD 68 million in the first quarter • USD 75 million in Kurdistan payments during Q1 2021, plus additional USD 54 million received in April • North Sea tax refunds of USD 15 million received in Q1 2021 with USD 162 million expected in balance of 2
Slide 14: Capital structure
Capital structure Cash deposits Net interest-bearing debt Equity ratio USD million USD million Percent 800 800 100 700 700 90 586 80 600 600 559 543 537 513 70 486 477 477 473 473 500 500 427 60 400 373 400 50 300 300 40 36 32 33 32 31 32 30 200 200 20 100 100 10 0 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3
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,
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