Karoon Energy Ltd · ASX:KAR
Karoon Energy — FY2021 Earnings Presentation
28 slides from Karoon Energy's earnings presentation, Sep 20, 2021
Slide 1: Full Year Financial Report 2021 – ASX Release and Investor Presentation
20 September 2021 Company Announcements Office ASX Limited Dear Sir / Madam Full Year Financial Report – 2021 Financial Year – ASX Release and Investor Presentation Attached are the following documents in relation to Karoon Energy Ltd’s full year financial report for the financial year ended 30 June
Slide 2: Karoon posts full year NPAT of US$4.4 million and underlying NPAT of US$33.4 million
ASX RELEASE Issued 20 September 2021 Karoon posts full year net profit after tax of US$4.4 million and underlying net profit after tax of US$33.4 million following transformational year Highlights: • Oil production from the Baúna Field totalled 3.14 million barrels (MMbbl), produced at an average ra
Slide 3: Projects to add production by early 2023; Strategic Refresh
has two projects which are expected to add between 15,000 – 20,000 bopd by early 2023 and more than double current production before natural decline resumes. Having completed our transition into an oil producer, in April 2021, a Strategic Refresh commenced, aimed at updating Karoon’s corporate strat
Slide 4: Financial Results for FY2021
Financial Results for FY2021 Table 1 - Financial Summary Year to 30 June 2021 2020 Production volume (MMbbl) 3.14 - Oil sales volume (MMbbl) 2.90 - Unit Production Costs1,2 (US$/bbl) 25.11 - Weighted average net realised price1 (US$/bbl) 59.00 - US$ million US$ million Sales revenue 170.8 - EBITDA1,
Slide 5: Guidance for FY2022
Karoon recorded a statutory net profit after tax (NPAT) of US$4.4 million and an underlying NPAT of US$33.4 million (see note 5 to Table 1 for adjustments to derive underlying NPAT) for FY2021. Key items impacting statutory reported profit included net foreign currency losses of US$17.0 million and
Slide 6: This announcement has been authorised for release by the Board
With production costs largely fixed, unit production costs are expected to increase, reflecting lower production rates in FY2022, combined with additional costs related to preventive maintenance projects on the FPSO to ensure future reliability and safety. Unit depreciation and amortisation is expec
Slide 7: Glossary, About Karoon and Forward-looking Statements
Glossary Term Definition bbl barrel FY2021 Financial year ending 30 June 2021 FY2022 Financial year ending 30 June 2022 Karoon Karoon Energy Ltd and its subsidiaries MMbbl million barrels of oil US$ United States dollars About Karoon Energy Ltd Karoon Energy Ltd. is an international oil and gas expl
Slide 8: Karoon Energy FY2021 Full Year Results
Karoon Energy FY2021 Full Year Results 20 September 2021
Slide 9: Disclaimer / Definitions
Disclaimer / Definitions Disclaimer This presentation has been prepared by Karoon Energy Ltd. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contai
Slide 10: Karoon – pure oil play with exposure to exciting Brazilian oil industry
Karoon – pure oil play with exposure to exciting Brazilian oil industry 3
Slide 11: Key Strategic Goals delivered in FY2021
Key Strategic Goals delivered in FY2021 • Completed Baúna purchase in Brazil’s Santos Basin in November 2020 for US$380 million firm consideration plus up to US$285 million plus interest1, contingent on oil prices • Produced 3.14 MMbbl in FY2021 (from 7 Nov 2020 to 30 June 2021) Transformation into
Slide 12: Key Strategic Goals delivered in FY2021 cont.
Key Strategic Goals delivered in FY2021 cont. Refreshed Karoon • Retirement of Founding MD, Mr Robert Hosking, appointment of new CEO and MD, Dr Julian Board and management Fowles team, with capabilities • Retirement of long standing non-executive directors, Mr Geoff Atkins and Mr Jose Coutinho and
Slide 13: FY2021 Key operational and financial metrics
FY2021 Key operational and financial metrics One LTI, TRIR 0.64* Production 3.14 MMbbl Unit Production Costs Zero Tier 1/2 process safety Sales 2.90 MMbbl US$25.11/bbl incidents** Revenue Year-end Cash Operating Cash Flow – US$29.8 million US$170.8 million US$133.0 million Underlying NPAT– US$33.4 m
Slide 14: HSSE and sustainability core to all Karoon activities
HSSE and sustainability core to all Karoon activities • Key focus in FY2021 on setting strong safety culture throughout Baúna operations • Fully integrated operating management system developed, to ensure comprehensive and robust risk management • One LTI on supply vessel during pre-operatorship tra
Slide 15: NPAT of US$4.4 million, underlying NPAT of US$33.4 million
NPAT of US$4.4 million, underlying NPAT of US$33.4 million Year to 30 June 2021 • Production of 3.14 MMbbl in period from 7 Nov 2020 to 30 June 2021 Production (MMbbl) 3.14 • Six cargoes lifted, sales volume of 2.9 MMbbl Sales Volume (MMbbl) 2.90 generating revenue of US$170.8 million, with Realised
Slide 16: Movements in cash over FY2021
Movements in cash over FY2021 $US $US M's M's 137 130 133 Bauna Capex - Cash Bal Post Production Exploration & Income Tax Acquisition & Workovers - Corporate & Cash Bal 1 Jul 20 Acquistion Oil Sales Cost (inc FPSO Evaluation Transition Patola - Plant & Other Pmts 30 Jun 21 Cash Bal lease pmts) Expen
Slide 17: Strong production performance from Baúna field
Strong production performance from Baúna field • FY2021 production of 3.14 MMbbl (in line with guidance), average production rate of 13,317 bopd between November 2020 and June 2021 • 92% average uptime and 97% uptime excluding scheduled maintenance on FPSO • Annualised decline rate in eight months o
Slide 18: Maersk rig contracted for Baúna Intervention Program
Maersk rig contracted for Baúna Intervention Program • Maersk Developer Rig contracted for Baúna intervention campaign • Currently located in Suriname, expected to arrive in Brazil in 2Q CY2022, dependent on options on existing drilling program • Four interventions planned - 2 downhole pump replacem
Slide 19: Patola development sanctioned
Patola development sanctioned • Patola field located adjacent to producing Baúna and Piracaba fields, within BM-S-40 production ring-fence • Development plan comprises two vertical wells and subsea infrastructure (to be designed, manufactured and installed by TechnipFMC) tied back to spare riser slo
Slide 20: Optimising Neon development concept
Optimising Neon development concept • Neon and Goiá light oil discoveries, located 50- 60km from Baúna • Moderate water depth, shallow reservoirs and high quality seismic dataset - analogous to Baúna asset • Subsurface, engineering and economic review of previous development concept initiated in Mar
Slide 21: Karoon's first debt facility arranged
Karoon’s first debt facility arranged • US$160 million reserve-based, non-recourse facility: • Syndicate comprises Deutsche, ING, Macquarie and Shell • Cost-competitive funding source • Establishes relationships with high quality global banks • Potential to expand via US$50 million accordion facilit
Slide 22: June 2021 Reserves and Resources Statement
June 2021 Reserves and Resources Statement Reserves at 30 June 2021 1P (MMbbl) 2P (MMbbl) 3P (MMbbl) Developed1 30.0 34.7 46.8 Undeveloped2 11.1 14.7 19.3 Total 41.1 49.4 66.1 1 Baúna producing 2 Patola under development Contingent Resources at 30 June 2021 1C (MMbbl) 2C (MMbbl) 3C (MMbbl) BM-S-40 (
Slide 23: Strategic Refresh nearing completion
Strategic Refresh nearing completion • Strategic Refresh commenced in April, aimed at updating corporate strategy and key objectives for five years+ following completion of Baúna acquisition • Goal is to create a sustainable oil business, based on current Brazilian producing assets and projects unde
Slide 24: FY2022 Guidance
FY2022 Guidance 1 Year to 30 June 2022 Low High • Baúna production expected to average 11,500 – 12,500 bopd, based on 92% - 97% uptime, Production (MMbbl) 4.2 4.6 excluding nine days scheduled maintenance Costs • Production costs largely fixed, resulting in increase in unit production costs based on
Slide 25: Summary and Outlook
Summary and Outlook A new era as an oil producer • Becoming established as a safe and reliable oil producer and operator • Continued focus on scheduled and preventive maintenance to optimise uptime • Mature reservoirs performing well • Generating strong cashflows, with Shell marketing arrangement pr
Slide 26: Appendix 1: Reconciliation of Statutory NPAT to Underlying NPAT
Appendix 1 Reconciliation of Statutory NPAT to Underlying NPAT1 US$ Year to 30 June 2021 million Net profit after tax 4.4 Recognition of historical Brazilian tax losses (20.7) Forex losses 17.1 Baúna transition costs 15.7 Pitkin legal settlement 9.6 Change in fair value of contingent consideration 6
Slide 27: Appendix 2: Impact of AASB Leases
Appendix 2 Impact of AASB 16 ‘Leases’ The Baúna FPSO charter contract lease has been accounted for in accordance with AASB 16 ‘Leases’. The following amounts have been reflected in the FY2021 results: Year to 30 June 2021 US$ million Profit and Loss Cost of sales – depreciation on FPSO right of use
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