Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — Q3 2013 Earnings Presentation
20 slides from Dno Asa Class A's earnings presentation, 2013
Slide 1: Interim presentation 2013 Third quarter
Interim presentation 2013 Third quarter
Slide 2: Q3 2013 and year-to-date highlights
Q3 2013 and year-to-date highlights • Net profit of NOK 282 million on operating revenue of NOK 810 million • Record quarterly company working interest (CWI) production of 52,780 barrels of oil equivalent per day (boepd) up 36 percent on Q2; YTD CWI production of 40,274 boepd • Strong financial posi
Slide 3: Delivering growth at Tawke
Delivering growth at Tawke Gross 2P reserves since discovery 1,000 900 Gross URR Gross Remaining 800 • On track to become first billion barrel 700 mllion barrels 600 field in Kurdistan with routes to market 500 • New drilling boosts gross wellhead 400 300 200 100 capacity - now around 155,000 bopd 0
Slide 4: Horizontal drilling at Tawke
Horizontal drilling at Tawke • Tawke-20 and Tawke-23 results have “moved the needle” at the field • Re-working accelerated development plan incorporating horizontal wells • Drive down capital costs and drive up production and reserves • Tawke-21 and Tawke-22 wells drilling ahead with more wells plan
Slide 5: Tawke – three fields in one
Tawke – three fields in one N S • Development to date has primarily focused on the Cretaceous reservoir Tertiary • Tawke-17 discovery opens deeper Jurassic play Cretaceous • Separate approach to development of the Tertiary Jurassic reservoir offers significant additional potential Oil discoveries Q3
Slide 6: Progress at the Dohuk and Erbil licenses
Progress at the Dohuk and Erbil licenses Dohuk license • Summail GSPA commercializes field at $3 to $4 per Mcf on take or pay basis • Helps displace diesel at Dohuk Power Plant (win-win situation) • Next focus on heavy oil potential Erbil license • Significant upside opportunity • Temporary producti
Slide 7: Progress across rest of the portfolio
Progress across rest of the portfolio • Stable production in Oman and Yemen provides diversified revenue stream • Significantly grown portfolio in 2013 through asset acquisitions • Scaling up exploration and appraisal activities • Salsala-1 oil discovery in Yemen Block 32 tested 5,900 bopd • Manage
Slide 8: Current drilling program
Current drilling program 2013 2014 Q1 Q2 Q3 Q4 Q1 Rig-9 Bastora- Bastora-2 Benenan-4 Peshkabir-1S/T 2S/T Summail- Rig-10 Tawke-20 Tawke-23 Tawke-22 Summail-3 2 Kurdistan Rig-32 Tawke-17 Tawke-21 Tawke-26 Sindy Summail -1 Rig-905 Nabrajah- Nabrajah Tasour- Yaalen-5 Godah-13 Salsala-1 Salsala-2 9S3 -1
Slide 9: Building a leading MENA E&P Company
Building a leading MENA E&P Company • Investors recognizing and rewarding DNO for solid performance − Continue to derisk and highgrade portfolio − Share price up 100 percent year-to-date − Best performing European E&P company in 2013 and significantly outperformed global integrated companies − Yet s
Slide 10: Our competitive advantage
Our competitive advantage • No 2 in booked liquid reserves • No 1 globally in finding and among European peers development costs 2P CWI reserves 25 3 year rolling average F&D costs 700 600 20 500 15 400 $ per boe million barrels 300 10 200 5 100 0 0 DNO Global Global all Global mid Global Global lar
Slide 11: Financial summary
Interim presentation 2013 Financial summary
Slide 12: Q3 2013 financial results – key figures
Q3 2013 financial results – key figures • Consistent profitability • Investments funded by operational cash flow year-to-date Revenues Netback Operating profit 1,000 1,400 1,200 1,200 1,000 800 651 651 1,000 651 800 NOK million NOK million NOK million 600 800 600 600 400 400 400 783 810 764 600 581
Slide 13: Quarterly CWI production (boepd)
Quarterly CWI production (boepd) 60,000 Kurdistan Oman Yemen 50,000 40,000 CWI boepd 30,914 38,045 30,000 24,682 11,332 33,851 20,000 10,948 10,000 13,374 10,983 10,064 3,745 3,948 4,501 4,355 3,975 3,786 0 41,544 46,398 29,061 38,720 52,780 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q3 2013 interim pr
Slide 14: Q3 2013 revenue and gross profit distribution
Q3 2013 revenue and gross profit distribution Revenues – NOK million Gross Profit – NOK million Oman: 202 Oman: 124 Kurdistan: 462 Kurdistan: 324 Yemen: 147 Yemen: 55 Q3 2013 interim presentation Slide 14
Slide 15: Increasing investments in line with plan
Increasing investments in line with plan • Capex and capitalized Capex and capitalized exploration exploration NOK 437 million in 500 Q3 450 Other UAE Oman • Budgeted 2013 projects on track 400 Kurdistan for NOK 1.75 billion 350 Yemen • New Summail gas development 300 NOK million project expected to
Slide 16: Robust capital structure
Robust capital structure • Strong financial position • Capacity to execute work program and capitalize on new opportunities Cash position Net debt/cash Equity ratio 1,755 1,800 500 1,648 60% 393 60% 1,577 400 58% 1,600 55% 56% 1,508 300 257 50% 1,400 50% 187 200 1,200 1,100 NOK million NOK million 1
Slide 17: Q3 2013 income statement
Q3 2013 income statement NOK million Q3 2013 Q3 2012 YTD 2013 YTD 2012 Highlights Sales 810.2 540.6 2,155.3 1,407.5 • Increased production Cost of goods sold -317.8 -346.5 -931.0 -839.1 in Kurdistan and Oman drive up Q3 Expensed exploration -12.2 -25.0 -37.3 -58.5 and year-to-date sales Admin/other
Slide 18: Q3 2013 cash flow statement
Q3 2013 cash flow statement NOK million Q3 2013 Q3 2012 YTD 2013 YTD 2012 Highlights Profit before income tax 366.6 98.9 964.1 326.4 • Disciplined capital Non cash items & changes in working capital 136.1 -123.7 609.6 492.7 allocation Taxes and interest paid -130.7 -51.5 -358.9 -229.0 • Year-to-date
Slide 19: Interim presentation 2013 Third quarter
Interim presentation 2013 Third quarter
Slide 20: Important notice
Important notice This presentation (the “Presentation”) has been prepared and delivered by DNO International ASA (“DNO” or the “Company”). The Presentation and its contents is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person than the intended