Slide 1: 2017 Interim Results
Presentation 2017 Interim Results
Slide 2: Corporate overview and operational highlights
Corporate overview and operational highlights Page 2
Slide 3: Strong operations, strong financials, strong balance sheet
Strong operations, strong financials, strong balance sheet • DNO operated production in Kurdistan currently averaging 113,000 barrels of oil per day (bopd), of which Tawke field 97,000 bopd and Peshkabir field 16,000 bopd • Leading international operator in Kurdistan (in active rigs, wells drilled,
Slide 4: 2017 operational highlights
2017 operational highlights • Operated production in 2017 averaged 113,500 barrels of oil equivalent per day (boepd), up from 112,600 boepd in 2016 • Of which Kurdistan represented 109,000 bopd and Oman 4,500 boepd • Company Working Interest (CWI) production averaged 72,300 boepd in 2017 and entitle
Slide 5: 2017 financial highlights
2017 financial highlights Kurdistan export payments net to DNO by month received January 2016 - December 2017 USD million • Annual revenues of USD 347 million (USD 50 202 million in 2016) 44.7 45 • Received Kurdistan export payments net to 40 38.7 DNO totaling USD 380 million in 2017 (USD 35 33.8 21
Slide 6: Foot on accelerator in Kurdistan
Foot on accelerator in Kurdistan • Over 50 percent hike in 2018 Kurdistan spend to USD 250 million (net to DNO) on back of continued export payments • Landmark receivables settlement increased DNO’s stake in Tawke and Peshkabir fields from 55 percent to 75 percent • Tawke-48 Cretaceous well currentl
Slide 7: Fast tracking Peshkabir
Fast tracking Peshkabir • Brought Peshkabir Cretaceous discovery on stream in less than six months and tripled production to over 15,000 bopd by late 2017 • Steady output from Peshkabir-2 (5,600 bopd) and Peshkabir-3 (10,000 bopd) for cumulative production of 2 million barrels to date with an estima
Slide 8: Building new focus area
Building new focus area • DNO awarded participation in 10 exploration licenses under Norway’s Awards in Predefined Areas (APA) 2017 licensing round • Of which seven in North Sea, one in Norwegian Sea and two in Barents Sea • Adds to existing nine licenses offshore Norway and United Kingdom, of which
Slide 9: Financial review
Financial review Page 9
Slide 10: DNO financial results – key figures
DNO financial results – key figures Revenue Netback Operating profit USD million USD million USD million 500 300 600 452 521 450 500 250 232 400 400 347 204 350 200 300 300 200 250 150 202 100 200 187 6 94 100 0 150 100 -100 50 50 22 -200 -174 0 0 -243 -300 2014 2015 2016 2017 2014 2015 2016 2017 20
Slide 11: Financial summary
Financial summary USD million Q4 2017 Q3 2017 Q4 2016 2017 2016 Revenue 116.0 73.0 42.1 347.4 201.8 Cost of goods sold -57.1 -79.4 -36.9 -202.2 -128.7 Gross profit 58.9 -6.4 5.2 145.2 73.1 Expensed exploration -24.1 -5.9 -1.3 -33.0 -20.3 Administrative expenses -9.3 -12.0 -9.4 -33.2 -31.0 Other oper
Slide 12: Investment program
Investment program Annual operational spend USD million Capex Expex Lifting 350 340 300 259 250 200 161 150 125 100 50 0 2015 2016 2017 2018 (projected) • More than doubled operational spend in 2017, with further increases planned for 2018 • Projected 2018 annual capex at USD 150 million • Stepping
Slide 13: 2017 cash flow
2017 cash flow USD million 700 600 -127.8 500 -41.9 338.8 400 300 430.2 200 261.1 100 0 Cash at end-2016 Cash from operations Exploration & Tax & finance Cash at end-2017 development investments • Strong 2017 operational cash flow of USD 338.8 million (USD 98.7 million in 2016) • Cash increase of US
Slide 14: Capital structure
Capital structure Cash deposits Financial assets Equity ratio USD million USD million Percent 450 430 70% 70 62 400 63 60% 60 58 350 50% 57 300 50 48 261 43 250 238 40% 40 200 30% 30 150 22 114 20% 20 100 14 10 10% 50 0 0 0% 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017 • Net cash posi
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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