Slide 1: Investor Call FYE 2014, Q1 2015 & H1 2015 Performance Review
Oando Plc Investor Call FYE 2014, Q1 2015 & H1 2015 Performance Review Presented by Wale Tinubu - Group Chief Executive www.oandoplc.com
Slide 2: Disclaimer
Disclaimer This presentation includes certain forward looking statements with respect to regulatory authorities) or they may be reasonably anticipated economic This presentation does not constitute an certain development projects, potential collaborative partnerships, results of conditions in the ca
Slide 3: Contents
Contents 03 Asset Overview 05 Operational Update 07 FYE 2014 Financial Highlights 17 Q1 2015 Financial Highlights 23 H1 2015 Financial Highlights 30 Strategic Overview 2
Slide 4: Asset Overview
Asset Overview www.oandoplc.com ..the energy to inspire
Slide 5: Asset Overview
Asset Overview Description Operational Assets · Largest indigenous producer in Nigeria · Producing assets: OMLs 60-63, OML 125, OML 56 & OML 13. Exploration & · OER Listed on the TSX · Development & appraisal: OML 90, OML 122, OML 131, OML 134, Production and OML 145, UPSTREAM · 93.8% ownership of O
Slide 6: Operational Update
Operational Update www.oandoplc.com ..the energy to inspire
Slide 7: Operational Update
Operational Update ..the energy to inspire Upstream Division Midstream Division Downstream Division Exploration & Energy Supply & Production Services Gas & Power Marketing Trading Terminals Completes 2014 year-end Zero Loss Time Injury (LTI) on all Completes Segment 1 of the Entered into strategic p
Slide 8: FYE 2014 Financial Highlights
FYE 2014 Financial Highlights www.oandoplc.com
Slide 9: FYE 2014 Profit & Loss Highlights Vs. FYE 2013
FYE 2014 Profit & Loss Highlights Vs. FYE 2013 Turnover of EBITDA of Loss after tax of -7% -4% -13264% N 426 Bn N 46 Bn N 184 Bn N’Million FYE 2014 FYE 2013 Variance Turnover 425,693 456,984 (7%) Gross Margin 69,575 59,433 17% Non-interest Expenses (87,762) (33,331) 163% Other Operating Income 63,98
Slide 10: FYE 2014 Performance Review
FYE 2014 Performance Review Turnover for the period was N31 Billion down from previous year. Downstream: Reduced by Midstream: Increased by OES: Reduced by E&P: Increased by N68Bn against prior year N5.2Bn against prior year N6.2Bn against N44Bn against Turnover prior year prior year PMS allocations
Slide 11: FYE 2014 Performance Review
FYE 2014 Performance Review Non-interest expenses are 163% higher than prior year; Non-interest Expenses The group recognised exchange loss of about N21.3Bn as a result of the devaluation of the naira, arising largely from dollar denominated 163 % loans and payables (DS: N7.3Bn; OPLC: N14Bn). Additi
Slide 12: FYE 2014 Performance Review
FYE 2014 Performance Review The following impairment loss of about N167 Bn was recognised during the year: Impairment Impairment loss on non-current asset – N114.3Bn. This includes: of Assets – OER Upstream asset (N76.9Bn), – OES rigs (N36.4Bn), 100% Impairment loss on receivables – N17Bn. This incl
Slide 13: Reconciliation of 2014 Actual to Annual Financial Statements
Reconcilation of 2014 Actual to Annual Financial Statements Discontinued 2014 Discontinued 2013 N’Million FYE 2014 Operations as reported FYE 2013 Operations as reported Turnover 425,693 1,015 424,678 456,984 7,111 449,873 Gross Margin 69,575 393 69,182 59,433 144 59,289 Non-interest Expenses (87,76
Slide 14: Explanation of G&A in 2014 FYE - Impairments
Explanation of G&A in 2014 FYE - Impairments ADMIN EXPENSES N’Million FYE 2014 FYE 2013 Depreciation 18,897 9,980 Impairments 167,317 858 Other G&A 85,661 30,559 271,875 41,397 IMPAIRMENTS N’Million N’Million FYE 2014 Impairment of Goodwill 696 Impairment of OES Rigs 36,361 Impairment of Upstream As
Slide 15: Explanation of G&A in 2014 FYE - Other G&A
Explanation of G&A in 2014 FYE - Other G&A N’Million FYE 2014 FYE 2013 Depreciation 18,897 9,980 Impairments 167,317 858 Other G&A 85,661 30,559 271,875 41,397 IMPAIRMENTS N’Million N’Million FYE 2014 Foreign Exchange Loss 29,972 COP acquisition fees and costs 19,532 Staff Cost 16,433 Rental & Trave
Slide 16: Group Balance Sheet Highlights
Group Balance Sheet Highlights Fixed Assets Long Term Receivables Short Term Borrowing 101 % N 694 Bn -78% N 3.4 Mn -70 % N 311 Bn N’Million FYE 2014 FYE 2013 Variance Non-current assets 690,038 344,119 101% Long term receivables 3,427 15,413 (78%) Stock 26,971 19,446 39% Trade and other Debtors 140
Slide 17: FYE 2014 Balance Sheet Review
FYE 2014 Balance Sheet Review Non Current Non-current assets increased by (N345.9Bn) due to; Assets Goodwill on acquisition of COP - N157Bn Upstream assets acquired from COP - 171Bn Increase in upsteam asset investment - N29Bn 101% Greater Lagos 4 (GL4) additions during the year – N1.5Bn Long term r
Slide 18: Q1 Financial Highlights
Q1 Financial Highlights www.oandoplc.com ..the energy to inspire
Slide 19: Q1 2015 Profit & Loss Highlights Vs. Q1 2014
Q1 2015 Profit & Loss Highlights Vs. Q1 2014 Turnover of EBITDA of Loss after tax 14% -91% -672% N 97.1 Bn N 0.7 Bn N 21 Bn N’Million Q1 2015 Q1 2014 Variance Turnover 97,070 85,269 14% Gross Margin 20,458 14,462 41% Non-interest Expenses (23,289) (7,425) 214% Other Operating Income 3,559 1,040 242%
Slide 20: Q1 2015 Performance Review
Q1 2015 Performance Review Turnover Turnover for the period was N97 billion, 14% higher than previous year mainly due to: Increased liftings from OHL as a result of COP acquisition (N17.6 Bn). 14 % This was negated by N3.5 Bn in OES due to non-operation of 2 rigs and N3.2 Bn in DS due to higher unit
Slide 21: Q1 2015 Performance Review
Q1 2015 Performance Review Non-Interest Non-Interest Expenses for the period was 187% above prior year due to: Expenses Unrealized exchange loss due to Naira devaluation – N13.5 Bn. -214 % Additional administrative expenses in relation to COP Vs. Q1 2014 Loss After Tax Loss after tax was N21 Bn, 625
Slide 22: Reconciliation of Q1 2015 to Interim Financial Statement
Reconciliation of Q1 2015 to Interim Financial Statement Discontinued Q1 2015 Discontinued Q1 2014 N’Million Q1 2015 Operations as reported Q1 2014 Operations as reported Turnover 97,070 64,042 33,028 85,269 67,268 18,001 Gross Margin 20,458 6,294 14,164 14,462 3,759 10,703 Non-interest Expenses (23
Slide 23: Q1 2015 Group Balance Sheet Highlights
Q1 2015 Group Balance Sheet Highlights Fixed Assets Receivables Short Term Borrowing 6 % N 591 Bn -5 % N 133 Mn -11 % N 277 Bn N’Million Q1 2015 FYE 2014 Variance PPE & Intangibles 591,053 559,747 6% Stock 20,075 26,971 (26%) Trade and other Debtors 133,157 140,652 (5%) Bank and cash balances 31,299
Slide 24: H1 Financial Highlights
H1 Financial Highlights www.oandoplc.com ..the energy to inspire
Slide 25: H1 2015 Profit & Loss Highlights Vs. H1 2014
H1 2015 Profit & Loss Highlights Vs. H1 2014 Turnover of EBITDA of Loss After Tax of -7% -91% -491% 180 N Bn N 2.8 Bn N 35.1 Bn N’Million H1 2015 H1 2014 Variance Turnover 180,028 194,558 (7%) Gross Margin 37,085 50,506 (27%) Non-interest Expenses (32,686) (20,871) 57% Other Operating Income (1,633)
Slide 26: H1 2015 Performance Review
H1 2015 Performance Review Turnover decrease of N70.7 Bn (28% N13.4 Bn decrease in gross margin against negative variance) comparative period due to: Vs. H1 2014 Loss of revenue in 2015 due to unit Decline in OES’ revenue as analyzed in the price differentials in PMS – N19.2 preceding slide and the
Slide 27: H1 2015 Performance Review
H1 2015 Performance Review Non-interest expenses increased Depreciation and amortization increased compared to previous year by 151% compared to prior year due to: Net Interest Unrealized exchange loss due to Naira Increased depreciation from OHL – N8.9 Bn Depreciation & Expenses devaluation – N9.6
Slide 28: H1 Quarterly Contribution Breakdown
H1 Quarterly Contribution Breakdown N’Million Q2 Q1 Turnover 82,958 97,070 Gross Margin 16,171 19,741 Non-interest Expenses (9,561) (22,573) Other Operating Income (5,192) 3,559 EBITDA 1,417 728 Net Finance Costs (10,922) (12,623) Depreciation & Amortization (9,527) (7,578) Loss before Tax (LBT) (19
Slide 29: Reconciliation of H1 2015 to Interim Financial Statements
Reconciliation of H1 2015 to Interim Financial Statements Discontinued H1 2015 Discontinued H1 2014 N’Million H1 2015 Operations as reported H1 2014 Operations as reported Turnover 180,028 119,709 60,319 194,558 138,888 55,670 Gross Margin 37,085 12,219 24,867 50,506 9,668 40,838 Non-interest Expens
Slide 30: H1 2015 Group Balance Sheet Highlights
H1 2015 Group Balance Sheet Highlights Fixed Assets Receivables Short Term Borrowing 6 % N 595 Bn -13 % N 123 Mn -26% N 229 Bn N’Million H1 2015 FYE 2014 Variance PPE & Intangibles 595,343 559,747 6% Stock 17,859 26,971 (34%) Trade and other Debtors 122,750 140,652 (13%) Bank and cash balances 26,92
Slide 31: Strategic Overview
Strategic Oveview www.oandoplc.com ..the energy to inspire
Slide 32: Strategic Highlights
Strategic Highlights Current: 2015 Midterm: 2017 Long Term: 2019 › Production of ~56kboepd (H1 2015 Average) › Production Target: > 80kboepd › Production Target: >100kboepd › 2P Reserves of 420mmboe › Reserves Replacement Ratio Target of 1:1 › 2P Reserves Target: >500mmboe › Maintain production on O
Slide 33: Q&A
www.oandoplc.com ©©©@S®