Slide 1: Dana Gas Capital Markets Presentation 9M/3Q 2015 Financial Results
Clean Energy For the MENASA Region’s Tomorrow Dana Gas Capital Markets Presentation 9M/3Q 2015 Financial Results 16th November 2015 www.danagas.com 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking Forward-looking statements are based on certain statements which may be identified by their use of assumptions and expectations of future events. The words like “plans,” “expects,” “will,” “anticipates,” Company, its subsidiaries a
Slide 3: Presentation Outline
Presentation Outline Performance Highlights Quarter-on-Quarter Financial Performance Financing Update Country Performance Egypt Kurdistan Region of Iraq Zora Gas Project Update Summary www.danagas.com 3
Slide 4: Performance Highlights
Performance Highlights Dr Patrick Allman-Ward Chief Executive Officer www.danagas.com 4
Slide 5: 9M/3Q 2015 Performance Highlights
9M/3Q 2015 Performance Highlights Over 50% decline in hydrocarbon prices coupled with natural decline of production (in Egypt) impact gross revenues and profitability – 9M revenue of $ 324 million, down 40% on a y-o-y basis; 3Q revenue of $ 93 million, down 47% on a q-o-q basis 3Q Net production
Slide 6: Financial Performance
Financial Performance Azfar Aboobakar Head - Financial Control & Reporting www.danagas.com 6
Slide 7: Financial Highlights: 9M 2014 vs 9M 2015
Financial Highlights: 9M 2014 vs 9M 2015 Percentage (In $ million) 9M – 2014 9M – 2015 Change Gross Revenue 541 324 (40) Gross Profit 251 97 (61) Net Profit 129 10 (92) EBITDA 315 139 (56) Decrease in Gross Revenue was mainly due to sharp decline in hydrocarbon prices (refer slide 12) which eroded
Slide 8: Financial Highlights: Q3 2014 vs Q3 2015
Financial Highlights: Q3 2014 vs Q3 2015 Percentage (In $ million) Q3 – 2014 Q3 – 2015 Change Gross Revenue 174 93 (47) Gross Profit 79 23 (71) Net Profit / (Loss) 38 (9) (124) EBITDA 100 38 (62) Decrease in revenue was mainly due to sharp decline in hydrocarbon prices (refer slide 12) which erode
Slide 9: Profit After Tax Bridge – 9M 2014 Vs 9M 2015
Profit After Tax Bridge – 9M 2014 Vs 9M 2015 ($ million) 150 129 100 (30) 50 85 19 3 5 7 10 0 (5) (4) (1) (3) (8) -50 -100 (187) 9M 2014 Revenue - Revenue - Decrease Increase in Decrease Decrease Decrease Decrease Increase in Increase in Increase in Decrease 9M 2015 Profit Quantity Price effect in R
Slide 10: Profit After Tax Bridge – 3Q 2014 Vs 3Q 2015
Profit After Tax Bridge – 3Q 2014 Vs 3Q 2015 ($ million) 50 40 38 30 20 (22) 10 0 6 1 1 1 -10 34 (4) (1) (9) (4) -20 -30 -40 (59) -50 Q3 2014 Revenue - Revenue - Decrease in Increase in Decrease in Decrease in Decrease in Decrease in Increase in Decrease in Q3 2015 Profit Quantity Price effect Royal
Slide 11: Production Performance (BOEPD)
Production Performance (BOEPD) Rounded to nearest hundred 3Q 2014 Vs 3Q 2015 2015 2014 9M 2014 Vs 9M 2015 80,000 80,000 70,550 68,700 70,000 65,100 70,000 60,800 60,000 60,000 50,000 50,000 41,450 41,000 40,000 35,600 40,000 32,800 29,100 29,500 30,000 27,700 28,000 30,000 20,000 20,000 10,000 10,00
Slide 12: Average Realized Prices
Average Realized Prices 3Q 2014 Vs 3Q 2015 9M 2014 Vs 9M 2015 120 120 100 100 104 100 80 68 80 70 60 60 53 47 40 37 33 40 20 20 0 0 Condensate (USD/boe) LPG (USD/boe) Condensate (USD/boe) LPG (USD/boe) 2015 2014 * Liquids benchmarked to Brent www.danagas.com 12
Slide 13: Trade Receivables
Trade Receivables ($ million) Dana Gas Egypt KRI Pearl Petroleum (40%) Receivable - $252 Receivable - $233 Receivable - $804 Receivable - $746 million million 300 million million 250 121% Billing Collection Billing 247 14% 210 250 200 173 200 150 $ Million $ Million 150 33% 77% 110 100 88 100 68 50
Slide 14: 2015 Capital Expenditure
2015 Capital Expenditure ($ million) 300 Forecast 2015 9M 2015 252 250 200 175 $ million 140 150 122 112 100 53 50 0 Total Egypt UAE Capital expenditure incurred in Egypt during 9 months of 2015 includes drilling and completion cost relating to Balsam wells and Signature bonus paid for Block-1 and
Slide 15: Financing Update
Financing Update Ranga Kishore Head of Financing www.danagas.com 15
Slide 16: Financing Update
Financing Update Sukuk Ordinary Sukuk (9%) outstanding of approx. $400 million following buy back of $25 million Convertible Sukuk (7%) outstanding of approx. $350 million post buy back of US$2 million 2014 redemptions of Convertible Sukuk worth $73 million – approx. 357 million shares issued
Slide 17: Country Performance
Country Performance Iman Hill Technical Director www.danagas.com 17
Slide 18: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations El Wastani Development Leases: • Onshore acreage consisting of 14 Development Leases in the prolific Nile Delta region Production: • 3Q 2015 avg 32.1 kboe/d versus 40.5 kboe/d for 3Q 2014. Decline is due to natural field production decline which will be Balsam 3 Balsam 2
Slide 19: Egypt: Balsam Horst Update: Balsam1 & Balsam-2
Egypt: Balsam Horst Update: Balsam1 & Balsam-2 B-2 B-1 Balsam-2 Pilot hole QP#2 • Excellent results in Balsam-2: • Longest gas column encountered in Dana Gas Egypt portfolio • Thicker Pay section than Balsam-1 found, potentially indicating a bigger hydrocarbon filled structure • There is more gas an
Slide 20: Egypt: Balsam 3 Discovery
Egypt: Balsam 3 Discovery Balsam QPII Amplitude Map (Final PSTM 2012) • Balsam-3 discovery well has proved up the play in the Western part of the Development Lease • Both of the reservoir intervals were encountered as per internal prognoses • This is a separate hydrocarbon filled structure from Bals
Slide 21: Gas Production Enhancement Agreement (GPEA) Execution Update
Gas Production Enhancement Agreement (GPEA) Execution Update • 3 drilling and workover rigs secured with spud dates during May/June o 2000 HP rig - Balsam-2 o 1500 HP rig - Balsam-3, Salma Delta-4 o 650 HP workover – work started in October 2015 • Plans underway to lay approximately 130 km pipeline
Slide 22: Egypt: Block 6 – North El Arish Offshore Update
Egypt: Block 6 – North El Arish Offshore Update • 1782 sq km of full fold 3D seismic acquired in Sept-Oct 2015 by PGS Ramform Titan boat. • Boat product PSTM seismic processing to be completed by mid/end December 2015 • Farm-out activity initiated • Integration of regional 2D multi client seismic da
Slide 23: Egypt: Block 1 - North El Salhiya Exploration
Egypt: Block 1 - North El Salhiya Exploration • North El Salhiya (Block-1) onshore concession in the Nile Delta ratified on 15th January 2015 • Block-1 (100% WI) – o Targets prolific Abu Madi play o Other plays include: Kafr El Sheikh and Oligocene • Activities o Negotiations ongoing with preferred
Slide 24: Egypt: Block 3 - El Matariya Exploration
Egypt: Block 3 - El Matariya Exploration • El Matariya (Block-3) onshore concession in the Nile Delta ratified on 15th January 2015 • Block-3 (50% WI); BP to operate as 50:50 JV partner • Targeting deeper, high- potential Oligocene play which is proven and tested in offshore Nile Delta by BP/BG • Th
Slide 25: Operations in Kurdistan Region of Iraq
Operations in Kurdistan Region of Iraq DG share of production (40%) averaged 28,000 boepd during 3Q 2015. Gross production details are as follows: o 300 MMscfd of natural gas o 12,627 bbl/d of condensates o 633 MT/d LPG The Mol sieve bed for the first train at Kor Mor plant was replaced in Octob
Slide 26: Zora Gas Project Update
Zora Gas Project Update Iman Hill Technical Director www.danagas.com 26
Slide 27: Zora Offshore drilling activity – First Gas Achieved
Zora Offshore drilling activity – First Gas Achieved Drilling of Sharjah well Lateral A and Lateral B completed Well cleaned up and flowed [50 MMSCFD] first gas 18th September 2015 Drilling Rig SGD-2 demobilized and departed Zora on 22nd October 2015 www.danagas.com 27
Slide 28: Zora Offshore Platform - Successfully Installed
Zora Offshore Platform - Successfully Installed Topsides installed offshore on 30th October and Platform installation complete Accommodation vessels and hook up team being mobilized Offshore Hook-up and Commissioning work ongoing First gas delivery for plant commissioning expected 4Q 2015 ww
Slide 29: Zora Gas Processing Plant - Nearing Completion
Zora Gas Processing Plant - Nearing Completion Main construction, Installation and Erection complete Systems powered up, Pre- commissioning activities ongoing in preparation to receive gas www.danagas.com 29
Slide 30: Summary
Summary www.danagas.com 30
Slide 31: Summary
Summary Average realized prices of condensate and LPG in the first nine months of the year was $53 and $37, a decline of roughly 50% on 2014 prices Sharp focus on opex optimization, reduction in capex, cost cutting, work force downsizing, and other cost reduction initiatives. First major gas d
Slide 32: Reach us: Dana Gas
Reach us: Dana Gas P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : rsingh@danagas.com Direct : +971 6 519 4401 Fax : +971 6 556 6522 www.danagas.com