Slide 1: 2012 Full-Year Results
2012 Full-Year Results 18 March 2013
Slide 2: Agenda
Agenda Agenda 2012 - Delivery on Key Strategic CEO and Operational Milestones Introduction Kai-Uwe 2012 Progress – Snapshot p. 2-3 Kessel Strategy – Reserves and Production Growth Financial Overview FY 2012 vs. CFO 2011 2012 Financial Results Jan-Ru Sources and Uses of Cash p. 4-11 Muller Balance Sh
Slide 3: 2012 – Delivery on Key Strategic and Operational Milestones
2012 – Delivery on Key Strategic and Operational Milestones Significant progress made in 2012, delivering targeted operational and strategic milestones - 1 • Substantial increase in production – 181% increase, stable consistent production achieved 2 • Continued success with the drilling – 8 wells dr
Slide 4: 2012 Progress – Snapshot
2012 Progress – Snapshot Production – +181% Net Operating Cashflow(1) – + 121% 40,000 36,940 350 35,000 291.8 300 30,000 250 25,000 boepd US$m 20,000 200 13,158 150 132.2 15,000 10,000 100 5,000 50 0 0 2011 2012 2011 2012 Enhanced Credit Metrics – Net debt / EBITDA down Delivery for Shareholders 46%
Slide 5: Jan-Ru Muller – CFO: 2012 Financial Results
Jan-Ru Muller – CFO: 2012 Financial Results
Slide 6: Financial Overview – FY 2011 vs. FY 2012
Financial Overview – FY 2011 vs. FY 2012 US$m (unless otherwise stated) 2012 2011 Change (%) Revenue(1) 737 343 115% Operating Profit 334 158 111% EBITDA(2) 460 197 133% Profit after Tax 162 82 99% Earnings per share (US$)(3) 0.86 0.44 96% Full year dividend per share (US$) 0.32 - n/a Capital Expend
Slide 7: 2012 Progress – Snapshot
2012 Progress – Snapshot Opex/boe(1) Transport costs/boe 25.0 12 21.3 10.4 20.0 10 7.6 8 US$/boe 15.0 US$/boe 9.6 6 10.0 4 5.0 2 0.0 0 2011 2012 2011 2012 EBITDA margin(2) Tax/boe(3) 64% 63% 25 22.9 63% 62% 20 61% US$/boe 15 11.9 60% 59% 58% 10 58% 57% 5 56% 55% 0 2011 2012 2011 2012 Improved operat
Slide 8: 2012 a transformational year
2012 a transformational year US$ m Net income bridge 2012 vs. 2011 600 436 500 400 (167) (25) 300 (68) 3 200 (45) 162 (53) 100 82 0 Net Income Sales Cost of sales G&A Transport costs Finance costs Other Tax Net Income 2011 2012 7
Slide 9: Cash Flow Bridge 2010 - 2012
Cash Flow Bridge 2010 - 2012 Significant cash flow Generation despite investment in growth US$ m 2011 2012 2010 103 500 282 400 (94) (46) 20 300 149 (13) 88 251 (29) 200 148 (104) 128 (210) 100 (43) 0 (1) (1) D&A D&A Other (2011) Chg. in (2010) Chg. in Capex Capex PBT PBT Tax paid Tax paid (2) Cash
Slide 10: Sources and Uses of Cash
Sources and Uses of Cash Commentary 2012 Net Cash Inflow US$122.3m(1) US$ m Sources Uses 2012 saw an impressive return to international 1,000 Total – US$958m 8 Total – US$836m debt capital markets 15 800 US$560m bond proceeds: 390 94 113 US$396m note repayment (incl. premium) 600 US$164m new cash 21
Slide 11: Strong Balance Sheet and Enhanced Credit Metrics
Strong Balance Sheet and Enhanced Credit Metrics Highlights Credit Metrics – Net debt / EBITDA < 1.0 x 3.0 Net debt / EBITDA (x) As at 31 December 2012, net debt / EBITDA was 0.9x 2.3 (versus policy at or lower than 1.5x) 2.0 1.6 1.4 Operational flexibility via cash position of US$251m(1) 0.9 1.0 Su
Slide 12: Kai-Uwe Kessel – CEO: 2013 – Next Steps in the Growth Trajectory
Kai-Uwe Kessel – CEO: 2013 – Next Steps in the Growth Trajectory
Slide 13: Organic Growth – 1. Chinarevskoye Field
Organic Growth – 1. Chinarevskoye Field 2013 Chinarevskoye Field Development Chinarevskoye - 1Bboe Field - Oil well 17 150 169 40 26 1P - Gas well 2P - Multi-target well 2 33 66 352 3P - Injector well 4 45 29 52 54 11 22 27 5111 24 30 556 Contingent 115 21 6 24 57 - Appraisal well 8 21 5 3 11 B 59 6
Slide 14: Organic Growth – 2. GTF II
Organic Growth – 2. GTF II Over US$20m already spent on initial design and early stage procurement Sent out requests for proposals to potential contractors Decision on contractor expected within 8 to 10 weeks Down payment for contractor budgeted for H1 2013 Completion expected in 2015/2016 Total cos
Slide 15: Inorganic Growth – 3. Value Accretive M&A
Inorganic Growth – 3. Value Accretive M&A Synergistic Development Acquisition of 3 Fields Addition of Material Reserves(1) Potential Acquisition of Rostoshinskoye, Adjacent to Chinarevskoye Darinskoye and Yuzhno- 103 Gremyachenskoye Proven Significant development 28 synergies mmboe Probable Complete
Slide 16: Summary and Outlook – Delivering Against Strategy & Positioned for Growth
Summary and Outlook – Delivering Against Strategy & Positioned for Growth 2012 Outlook 1 Substantial increase in Delivery of organic production – 181% Achieve >100kboepd by 2016 production growth GTF I fully operational 2 Target 556 mmboe possible Expand and Monetise Continued success with dri
Slide 17: Supporting Materials
‘ sv Ss Supporting Materials
Slide 18: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position As at 31 December, 2012 (‘000 US $) 2012 2011 ASSETS Non-Current Assets Property, plant and equipment 1,222,665 1,120,453 Restricted cash 3,652 3,076 Advances for non-current assets 25,278 3,368 1,251,595 1,126,897 Current Assets Inventories 24,964 14,518
Slide 19: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income As at 31 December, 2012 (‘000 US $) 2012 2011 Revenue Revenue from export sales 630,412 284,548 Revenue from domestic sales 106,653 16,289 737,065 300,837 Cost of sales (238,224) (70,805) Gross profit 498,841 230,032 General and administrative expenses
Slide 20: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows As at 31 December, 2012 (‘000 US $) 2012 2011 Cash flow from operating activities: Profit before income tax 282,372 148,972 Adjustments for: Depreciation and amortization 102,632 19,843 Accrual of share option expenses 2,470 3,545 Finance costs 50,118 4,717 Inter
Slide 21: Disclaimer
Disclaimer This presentation is strictly confidential to the recipient, may not be distributed to the press or any other person, and may not be reproduced in any form in whole or in part for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws