Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — H1 2018 Earnings Presentation
16 slides from Gulf Keystone Petroleum's earnings presentation, Sep 10, 2018
Slide 1: Gulf Keystone Petroleum Half Year 2018 Results
Gulf Keystone Petroleum 10 September 2018 Half Year 2018 Results
Slide 2: Disclaimer
Disclaimer This proprietary presentation (the “Presentation”) has been prepared by Gulf Keystone Petroleum Limited (the “Company”). Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any
Slide 3: H1 2018 Highlights: Jón Ferrier, CEO
H1 2018 Highlights: Jón Ferrier, CEO
Slide 4: Half Year 2018 Highlights
Half Year 2018 Highlights • Strong financial performance – Record profit after tax of $26.7m (H1 2017: $0.7m) – Regular payments – $147m cash receipts YTD – Continuous disciplined cost control – $3.0 per barrel opex • Commercial milestones – Return to investment at Shaikan – expansion to 55,000 bopd
Slide 5: Operational Review: Stuart Catterall, COO
Operational Review: Stuart Catterall, COO
Slide 6: A high-performing asset with a strong HSSE track record
A high-performing asset with a strong HSSE track record Shaikan gross production (‘000 bopd) • Production on track to meet annual guidance 40 – YTD1): 31,743 bopd 34.8 35.3 31.9 – Plant uptime: over 99% 30.5 30 2018 • Cumulative production Guidance exceeded 50 MMbbl in June 2018 20 17.8 • Steady pro
Slide 7: Expansion to 55,000 bopd underway
Expansion to 55,000 bopd underway Realising the potential of Shaikan with a phased, risk-managed approach • PF-1 pipeline tie-in initiated • Phased approach de- risks and progressively 110,000 unlocks value bopd 75,000 55,000 bopd bopd • On track to increase Shaikan production to Capex $200–230m1) g
Slide 8: Shaikan 55,000 bopd expansion project
Shaikan 55,000 bopd expansion project PF-2 SH-2 SH-5 SH-10 SH-11 SH‐11 SH‐10 SH‐5 SH‐4 SH‐1 SH‐7 SH‐2 SH‐3 SH‐6 SH‐8 PF‐2 tie‐in line PF‐1 tie‐in operational PF-1 line route Atrush pipeline SH-1&3 SH-4 SH-7 SH-8 5 km New Jurassic well location Temporary unloading facility at PF-2 under construction
Slide 9: Financial Review: Sami Zouari, CFO
Financial Review: Sami Zouari, CFO
Slide 10: Continuous payments from September 2015
Continuous payments from September 2015 • $107m net to GKP received in H1 2018 ($147m net YTD) $35 $30.4 $30 $25 $21.2 US$m (net) $20 $18.9 $17.0 $17.8 $14.7 $15.5 $15 $12.0 $10 $5 $0 Payment Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Received in Month of Sept-17 Oct / Nov-17 Dec-17 Jan
Slide 11: Half Year 2018 financial highlights
Half Year 2018 financial highlights • Record figures for GKP in H1 2018 • Revenue, EBITDA and profit driven by production, robust oil price • Signing of the Crude Oil Sales Agreement in January 2018 Revenue EBITDA Profit/(Loss) After Tax US$m US$m US$m $140 $70 $50 $27m $62m $116m $0.7m $120 $60 $54
Slide 12: Disciplined cost control
Disciplined cost control • Opex remained stable – in line with 2017 • Opex per barrel slightly increased due to lower production • G&A continued to decrease: $2.0m reduction vs. H1 2017 ($9.7m) Operating Expenses1) General & Administrative Expenses US$m 37 48 35 28 14 US$m 39 31 26 21 8 kbopd kbopd
Slide 13: Free cash flow positive
Free cash flow positive • Healthy cash balance ($240m at 7 September 2018) • Refinanced $100m bond in July 2018 with standard terms – 10% coupon, 5-year maturity H1 2018 Cash Flow ($m) $250 0 (2) $200 61 $150 219 $100 160 $50 $0 Opening Cash Operating Investing FX Closing Cash (31-Dec-2017) Activiti
Slide 14: Conclusion
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Slide 15: Outlook
Outlook • Operational Excellence – Safe operations and meeting 2018 production guidance of 27,000-32,000 bopd gross – Delivering on project milestones – Continued disciplined cost control • Production Growth – Deliver the expansion project: Jurassic drilling campaign, workovers, facilities debottlen
Slide 16: Thank you
Thank you More resources are available at: www.gulfkeystone.com
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