Slide 1: DNO ASA Corporate Presentation 4th Quarter 2001
DNO ASA Corporate Presentation 19.02.02 4th Quarter 2001 1
Slide 2: DNO ASA Key Facts
DNO ASA Key Facts • International E & P Company • Listed on Oslo Stock Exchange NORWAY • Outstanding shares: 51,6 Million • Current Market value: 730 MNOK UK • 2001 Production Growth 92 % • 2001 Revenue Growth: 78 % 14000 13255 12000 Oil Production 10000 8000 bbl/d 6920 6000 4000 YEMEN 2880 2160 236
Slide 3: 2001 Highlights
2001 Highlights 3
Slide 4: Year 2001 Highlights
Year 2001 Highlights The Overall 2001 Performance exceeded our expectation DNO Group delivers the best results in the history of the Company 4
Slide 5: 2001 Operational Highlights
2001 Operational Highlights Production Average Daily Oil Production of 13,255 BOPD - up 92 % Appraisal & Development Drilling 1 Heather Infill Well (DNO) 1 West Heather Appraisal Well (DNO) 2 Tasour Producers (DNO) Field Development Glitne Field on Stream in August Sharyoof Field on Stream in Decemb
Slide 6: 2001 Financial Highlights
2001 Financial Highlights Strong Growth in Financial Performance: Gross Revenue 1,200 MNOK – UP 78 % EBITDA 595 MNOK – Up 144 % EBIT 367 MNOK – Up 203 % Net Profit 134 MNOK – Up 168 % 6
Slide 7: Production 2001 by Business Areas bbl/d
Production 2001 by Business Areas bbl/d 16000 14000 3281 Yemen 12000 3429 3300 10000 2889 6076 Norway bbl//d 8000 4103 3383 3944 6000 4000 5642 6198 5801 UK 4889 2000 0 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 • Diversified portfolio of producing assets 7 • Increased Production in 4 Q
Slide 8: Reserves Oil and Gas Group (mboe)
Reserves Oil and Gas Group (mboe) Proved and Probable Reserves 90 - Net Change: 80 - + 25 % 83.89 • 2001 Production: (4,84) 70 - • Sale: (1,29) 60 - 66.90 • Revisions: 10,00 mboe 50 - • Acquisitions: 2,22 40 - 30 - • Discoveries: 10,90 20 - 10 - 16.99 0- 31.12.2000 31.12.2001 Net change 8
Slide 9: Key Financials January – December 2001
Key Financials January – December 2001 9
Slide 10: DNO Production vs. Brent Price
DNO Production vs. Brent Price 25000 30 25 20000 Monthly Brent USD/bbl 20 15000 bbl/d 15 10000 10 5000 5 0 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan -02 10
Slide 11: Income Statement 4Q 2001
Income Statement 4Q 2001 • Operating Profit Down due to Oil Price Decline and Higher DDA Costs • Revised Tax Estimates for 2001 (NOK mill.) 4Q01 3Q01 2Q01 1Q01 4Q00 Yr 01 Yr 00 Operating Revenue 271 327 314 287 208 1.199 673 Operating Expenses, excl DD&A 153 144 136 130 136 -564 -429 EBITDA 117 142
Slide 12: Quarterly Performance
Quarterly Performance 1Q01 2Q01 3Q01 4Q01 Production- and Transp. Cost (NOK mill.) 99 110 116 117 Production- and Transp. Cost per bbl. (USD) 9,46 9,95 11,77 9,2 350 300 Operating Revenue EBITDA 250 EBIT NOK mill 200 150 100 50 0 1Q01 2Q01 3Q01 4Q01 12
Slide 13: Annual Income Statement
Annual Income Statement • Strong Growth in 2000-2001 Operating Revenue - 30 1400 EBITDA 1200 EBIT - 25 Brent Spot 1000 - 20 Brent Spot 800 NOK mill -15 600 -10 400 -5 200 0 -0 1996 1997 1998 1999 2000 2001 13 -200
Slide 14: Business Unit Revenue and EBITDA in 2001
Business Unit Revenue and EBITDA in 2001 Revenue Per Business Unit EBITDA Per Businesss Unit NCS NCS UKCS UKCS INT INT Offshore Offshore Services Services 14
Slide 15: Balance Sheet YE 2001 - Assets
Balance Sheet YE 2001 - Assets • Further Investment in Producing Assets Assets YE 2001 Q3 2001 YE 2000 (NOK mill.) Fixed Assets 1.372 1.204 632 Financial Fixed Assets 485 502 495 Intangible Assets 150 122 128 Total Fixed Assets 2.006 1.828 1.254 Cash and Cash Equiv. 164 222 88 Other Current Assets 1
Slide 16: Balance Sheet YE 2001 – Shareholders’ Equity and Liabilities
Balance Sheet YE 2001 – Shareholders’ Equity and Liabilities • No major changes in 4Q01 Sharholders' Equity and Liabilities YE 2001 Q3 2001 YE 2000 (NOK mill.) Shareholders´Equity 942 916 797 Interest-Bearing Long-Term Debt 651 650 158 Provisions for Liabilities and Charges 396 391 316 Total Long-Te
Slide 17: DNO Balance Sheet
DNO Balance Sheet • Significant Asset Growth • Maintaining Moderate Leverage 2500 Other Liabilities 2000 Interest-Bearing Debt Equity 1500 NOK mill 1000 500 0 17 1996 1997 1998 1999 2000 2001
Slide 18: Cash Flow 4Q 2001
Cash Flow 4Q 2001 • Maintaining Strong Cash Flow from Operations • High Investment Levels (NOK mill.) 4Q01 3Q01 2Q01 1Q01 Yr 01 Yr 00 Cash Flow from Operations 145 154 153 182 634 150 Cash Flow from Investing -170 -371 -98 -244 -884 -460 Cash Flow from Financing -33 -36 360 34 325 297 Net Change in
Slide 19: Annual Cash Flow
Annual Cash Flow • Operational Cash Flow Covered 72% of 2001 Investments 800 1996 1997 1998 1999 2000 2001 600 400 200 NOK mill 0 -200 -400 -600 -800 -1000 Cash Flow from Operations Cash Flow from Financing 19 Cash Flow from Investing Change in Cash Balance
Slide 20: Key Figures - Financial Performance
Key Figures - Financial Performance • Significant Increase in Cash Flow and Profitability in 2001 4Q01 3Q01 2Q01 1Q01 4Q00 Yr 01 Yr 00 Earnings per Share NOK 0,61 0,83 0,46 0,74 -0,18 2,64 1,15 EBITDA per Share NOK 2,28 2,76 3,45 3,13 1,44 11,64 5,57 EBITDA Margin % 43,3 43,5 56,7 54,8 34,8 49,6 36,
Slide 21: Business Areas
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Slide 22: Overview Norway
Overview Norway Operator • PL 103B Jotun 7%* Exxon/Mobil • Glitne Field 10% Statoil • PL 203 15% Hydro • PL 148 30% A. Hess • PL 006C 10% A. Hess * 3.75% of this interest is pending the authorities approval and would imply operatorship in22PL 103b
Slide 23: Production Norway
Production Norway 9000 8077 8000 7000 6076 6000 5000 bbl/d 4103 3944 4000 3383 3000 2000 1719 1000 0 4th Q. 1st Q. 2nd Q. 3rd Q. 4th Q. Jan. 2002 2000 2001 2001 2001 2001 • Increase in production 2 H due to Glitne on stream • Increase in January due to 3.75 % additional share in Jotun 23
Slide 24: Reserves Oil and Gas Norway (mboe)
Reserves Oil and Gas Norway (mboe) Proved and Probable Reserves 16 - Net Change: 14 - 15.03 • 2001 Production (1,60) 12 - Jotun • Sale - 3.25% 10 - + 241 % Glitne • Revision 10.0 10% 10.62 mboe 8- • Acqusitions 2,22 6- 4- 4.41 2- Jotun 1.25% 0- 31.12.2000 31.12.2001 Net change 24
Slide 25: 2002 Outlook - Norway
2002 Outlook - Norway • Annual production: 6.500 - 7.500 BOPD • Additional 3.75 % in Jotun • Accelerated Infill Drilling on Jotun • Harvest Production on Glitne • PUD on PL 203 • Evaluate New Acquisitions 25
Slide 26: Overview Yemen
Overview Yemen • Block 32 Tasour (Operator) 41.0% • Block 43 (Operator) 73.0% • Block 53 Sharyoof 32.6% 26
Slide 27: Production - Yemen
Production - Yemen 9000 7841 8000 7000 6000 5000 bbl/d 4000 3429 3300 3281 2889 3000 2000 1344 1000 0 4th Q. 1st Q. 2nd Q. 3rd Q. 4th Q. Jan. 2002 2000 2001 2001 2001 2001 • Tasour performance better than expected • Sharyoof field on stream in December 27
Slide 28: Reserves of Oil and Gas in Yemen (mboe)
Reserves of Oil and Gas in Yemen (mboe) Proved and Probable Reserves Net Change: • 2001 Production (1,2) 10 - - 13 % • Sale - 9.4 8- 8.2 • Revision - mboe 6- • Acqusitions – 4- • Discoveries - 2- 0- -1.2 31.12.2000 31.12.2001 Net change 28
Slide 29: 2002 Outlook - Yemen
2002 Outlook - Yemen • Annual production: 6.500 - 7.500 BOPD • Drilling 2 - 3 additional production Wells on Sharyoof • Harvest Production on Tasour • Commence work in Block 43 29
Slide 30: Overview UK
Overview UK • Heather + West Heather (Operator) 100% • Solan / Stratmore 3.7% 30
Slide 31: Production UK
Production UK 7000 6198 5642 5801 6000 5575 5594 4889 5000 4000 bbl/d 3000 2000 1000 0 4th Q. 1st Q. 2nd Q. 3rd Q. 4th Q. Jan. 2002 2000 2001 2001 2001 2001 • Infill drilling & well interventions keeps production > 5.000 Bopd 31
Slide 32: Reserves of Oil and Gas in UK (mboe)
Reserves of Oil and Gas in UK (mboe) Proved and Probable Reserves 90 - Net Change: 80 - • 2001 Production (2,04) 70 - + 14 % • Sale (1,29) 60 - 60.75 • Revision - mboe 50 - 53.14 40 - • Acquisitions - 30 - • Discovery 10,94 20 - 10 - 7.61 0- 31.12.2000 31.12.2001 Net change 32
Slide 33: 2002 Outlook - UK
2002 Outlook - UK • Annual production: 5.000 BOPD • Continue Heather Well Interventions • Progress West Heather Development Plan • Bring in Partner on West Heather 33
Slide 34: DNO Group Performance & Outlook
DNO Group Performance & Outlook 34
Slide 35: DNO’S VISION
DNO’S VISION ”DNO shall be a leading, international niche player engaged in both the development of smaller oil & gas fields, and in extended production and increased recovery from mature petroleum fields.” 35
Slide 36: KEY STRATEGIES
KEY STRATEGIES • Operator or active Partner • Project-oriented Network • Investments in Rigs and Oil Service 36
Slide 37: Group Total Production 1996 - 2001 bbl/d
Group Total Production 1996 - 2001 14000 13255 12000 10000 8000 bbl/d 6920 6000 4000 2880 2160 2360 2000 840 0 1996 1997 1998 1999 2000 2001 37
Slide 38: Record Performance
Record Performance Heather 100 % 1400 Heather Operatorship 1200 Re-entry to Norway - 30 Investments in Yemen 1000 - 25 800 - 20 NOK mill Brent Spot 600 -15 400 -10 200 0 -5 1996 1997 1998 1999 2000 2001 -200 -0 Operating Revenue EBITDA EBIT Brent 38 Spot
Slide 39: Group Total Performance 1996 - 2001
Group Total Performance 1996 - 2001 THE STRATEGY HAS WORKED ! 39
Slide 40: DNO is well positioned for growth
“Trippel Oil Production within 2-3 years from current projects” “Capitalize on the window of opportunity on NCS and UKCS” “DNO IS WELL POSITIONED FOR GROWTH ! “ 40
Slide 41: Production forecast Yemen Norway UK
30000 Bopd 25000 20000 YEMEN 15000 NORWAY UK 10000 5000 0 4 Q 1999 1 Q 2000 1 Q 2001 1 Q 2002 1 Q 2003 1 Q 2004 41
Slide 42: April 2000 Forecast vs Actual
April 2000 Forecast Actual 25000 25000 20000 20000 15000 15000 10000 10000 YEMEN 5000 5000 NORWAY UK 0 0 1 Q 2000 1 Q 2001 1 Q 2002 1 Q 2000 1 Q 2001 1 Q 2002 42
Slide 43: Production 2001 by Business Area
Production 2001 by Business Area 25000 Bopd 21.512 20000 7841 Yemen 15000 bbl/d 3281 3429 3300 10000 2889 6076 8077 Norway 1344 4103 3383 1719 3944 5000 5575 5642 6198 4889 5801 5594 UK 0 4th Q. 1st Q. 2nd Q. 3rd Q. 4th Q. Jan. 2002 2000 2001 2001 2001 2001 • Diversified License Portefolio 43 • Reco
Slide 44: Reserves Oil and Gas Group (mboe)
Reserves Oil and Gas Group (mboe) Proved and Probable Reserves 90 - Net Change: 80 - + 25 % 83.89 • 2001 Production: (4,84) 70 - • Sale: (1,29) 60 - 66.90 • Revisions: 10,00 mboe 50 - • Acquisitions: 2,22 40 - 30 - • Discoveries: 10,90 20 - 10 - 16.99 0- 31.12.2000 31.12.2001 Net change 44
Slide 45: 2002 Outlook – DNO Group
2002 Outlook – DNO Group • Annual Production: 18.000 – 20.000 Bopd • Increased production from Norway and Yemen • Progress plans for exploiting the undeveloped reserves • Explore for new acquisitions and investment opportunities 45
Slide 46: Future Strategy
Future Strategy • Demerger of Offshore & Services • Niche E & P Company with priority on the ”P” • Maintain focus on Small Field Development and Extended Production from Mature Fields • Build Diversified International License Portefolio 46
Slide 47: Web Site
Web Site www.dno.no 47