Dana Gas Pjsc · ADX:DANA
Dana Gas Pjsc — Investor Presentation (March 2014)
36 slides from Dana Gas Pjsc's investor presentation, March 2014
Slide 1: Clean Energy For the MENA Region's Tomorrow
Clean Energy For the MENA Region’s Tomorrow Dana Gas Equity Investor Presentation March 2014 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 The MENA Region and its relevance Dana Gas: A Brief Overview Recent Performance Country Operations Valuations Summary www.danagas.com 3
Slide 4: Focused on a region with the largest share of global oil & gas reserves
Focused on a region that holds the largest share of global conventional oil & gas reserves and production Proved Gas Reserve (2012) Global Gas Production (2012) MENA oil production outlook >35% of global oil production 6614 Tcf 118 Tcf p.a MENA Gas production outlook 35 ~20% of global gas Gas Produc
Slide 5: Natural Gas fast becoming the Fuel of Choice
Natural Gas fast becoming the Fuel of Choice for the growing energy demand in MENA and else where Growing economies fueling demand for Global Population Trends energy (Source: UN) 70% less CO2 than coal in power generation (old plants) Small physical footprint versus coal, nuclear or renewable
Slide 6: Fast growing domestic demand in MENA
Fast growing domestic demand in MENA MENA Primary Energy Demand MENA Country Primary Energy Mixes3 (Source: EIA) (Source: BP Statistical Review 2013 & IEA Data) CAGR of gas consumption 7% Percentages represent gas consumption as 35% share of total primary energy consumption 27% 24% 41% 46% 50% CAGR
Slide 7: Dana Gas: A Brief Overview
Dana Gas: A Brief Overview www.danagas.com 7
Slide 8: Independent E&P company listed on the ADX
Independent E&P company listed on the ADX Dana Gas is a MENASA focused gas Dana Gas is operating at the heart of the World’s independent headquartered in the UAE Largest Hydrocarbon region Dana Gas is quoted in the UAE stock exchange (Abu Dhabi Securities Exchange). Bloomberg: DANA:UH Shares o
Slide 9: Board of Directors with access to key markets
Board of Directors consisting of luminaries from the MENA region provide unparalleled access to key markets Dr. Adel Al Sabeeh Sheikh Sultan Bin Ahmed Dr. Tawfeeq Al Moayed Ahmed Al Arbeed Chairman Al Qasimi Deputy Chairman Hamid Jafar KUWAIT KUWAIT UAE BAHRAIN UAE Former Chairman of Board Former Oi
Slide 10: Board of Directors with access to key markets (continued)
Board of Directors consisting of luminaries from the MENA region providing unparalleled access to key markets Ahmed Al Midfaa Abdullah Al Majdouie UAE Varouj Nerguizian Nasser Al Nowais Salah Al Qahtani SAUDI ARABIA Chairman of Sharjah UAE UAE SAUDI ARABIA Group President and Vice Chamber of Commerc
Slide 11: Portfolio with substantial upside
Portfolio with substantial upside www.danagas.com 11
Slide 12: Proven track record: exploration, accelerated development and inorganic opportunities
Proven track record based on top class exploration, accelerated development and inorganic opportunities Value Delivery Model Drill bits success – Nile delta exploration success – Reserve growth Exploration √ Nile Delta Exploration 2007-2013 M&A (48 exploratory wells with – Egypt entry: acquisiti
Slide 13: International and Experienced Management Team
International and Experienced Management Team Patrick Allman-Ward Mark Fenton Robinder Singh CEO Duncan Maclean GM - Egypt IR Director Commercial and Bus. Dev. Over 30 years in the Oil & Gas Director Over 28 years of experience in business. Held senior roles at Over 27 years of international operati
Slide 14: Largest independent gas producer amongst regionally owned peers
Largest independent gas producer amongst regionally owned peers Reserve Ranking of MENA region owned Independent E&P companies 1800 (Source: Woodmac) WI Commercial and Technical Reserves 1600 Commercial 5 1400 (mmboe) Technical 1200 1000 800 600 400 200 0 6 Genel GKP Dana Gas DNO Kuwait Pico Energy
Slide 15: Key Financial Metrics have doubled in years
Key Financial Metrics have doubled in 6 years Revenue: Profit After Tax: 800 180 700 160 600 140 120 USD Million USD Million 500 100 400 690 80 165 156 300 636 652 138 487 60 200 349 40 282 311 100 20 33 43 30 24 0 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 Operations Ca
Slide 16: Dana Gas: Recent Performance Highlights
Dana Gas: Recent Performance Highlights www.danagas.com 16
Slide 17: 2013: Several Achievements Despite Several Challenges
2013: Several Achievements Despite Several Challenges Higher average production of 64,700 BOEPD vis-à-vis 2012’s average of 59,800 BOEPD - Egypt production at 37,100 BOEPD higher by 14% on a Y-o-Y basis, while KRI production remained flat at 27,600 BOEPD Higher annual production drives revenues
Slide 18: Financial Highlights: Q4 2013 vs Q4 2012
Financial Highlights: Q4 2013 vs Q4 2012 Percentage (In $ million) Q4 – 2013 Q4 – 2012 Change Gross Revenue 186 151 23 Net Profit 35 31 13 Basic EPS (AED fils) 1.9 1.7 12 Higher production in Egypt (increase of 22%) and resumption of LPG sales in Kurdistan, leading to higher revenue in Q4 2013 N
Slide 19: 2013 Y-o-Y Financial Performance
2013 Y-o-Y Financial Performance Percentage (In $ million) 2013 2012 Change Gross Revenue 652 633 3 Net Profit 156 165 (5) Basic EPS (AED fils) 8.6 9.2 (6) Gross revenue higher by 3% due to an 8% increase in production Net profit for the year was down by 5% to $ 156 million. Higher production
Slide 20: Dana Gas: Country Business Highlights
Dana Gas: Country Business Highlights www.danagas.com 20
Slide 21: Egypt: Business Environment
Egypt: Business Environment Lack of investments resulting in a declining rate of gas exports whilst the domestic consumption of gas has been increasing Since the recent change of government in mid-2013, Saudi Arabia, Kuwait and the United Arab Emirates have promised Egypt a total of $12 billion
Slide 22: Meaningful position in rich hydrocarbon zones in Egypt
Meaningful position in rich hydrocarbon zones in Egypt 20 Egypt Proved Oil and Gas 18 Gas Reserves History Oil and Gas Reserves, Bn boe 16 Egypt has managed c. Dana Gas focus area in Egypt 14 Oil 100% reserves 12 replacement of oil since 10 mid-1980s 8 6 Nile Delta / East 4 Mediterranean 2 0 Western
Slide 23: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations New Development Leases: Balsam ( new ) El Wastani Begonia (under EGAS discussion) El Basant (Amendment) Sama (Amendment) Production Rate: 39.8 kboepd ( Q4 2013 Avg) Drilling 2013: 5 wells (1 Expl “ Begonia discovery” Balsam DL El Basant DL +1 App. + 1 Dev + 2
Slide 24: Largest Investor and gas producer in Kurdistan Region of Iraq
Largest Investor and gas producer in high-potential Kurdistan Region of Iraq Oil Resource Potential Gas Resource Potential (Source: ANP,MNR,USGS) (source: MNR, ANP, Songas) 70 Resource Potential 60 120 Gas Resource Potential 50 100 (Bln bbl) Mostly 40 80 associated 30 gas (Tcf) 60 20 10 40 0 20 Braz
Slide 25: Rich gas and condensate producer with strong growth track record
Rich gas and condensate producer with strong growth track record Kor Mor Field Production, Dana Gas net share Current Condensate Gas Ratio (CGR) on Khor Mor is ca. 45 bbl/mmscf comparable to Qatar North Field CGR of 47~50 www.danagas.com 25
Slide 26: Operations in Kurdistan Region of Iraq
Operations in Kurdistan Region of Iraq Total net production averaged at 27,600 BOEPD during 2013: 130 MMSCFD of natural gas 5700 bbl/d and 325 bbl/d of condensate and LPG, respectively Completed repairs to LPG loading bay resulting in restoration of the facility with capacity of 900 MT Pro
Slide 27: Dana Gas Kurdistan Assets – Substantial Resources
Dana Gas Kurdistan Assets – Substantial Resources Upside* Pearl Petroleum appointed Gaffney, Cline & Associates Limited (GCA), to provide an estimate of hydrocarbons in-place as at 31st December, 2012 for both the Khor Mor and Chemchemal fields GCA have estimated the gas initially in-place volum
Slide 28: UAE: Zora Gas Field Development Update
UAE: Zora Gas Field Development Update Project Management team on board Platform fabrication and loadout contract awarded in November 2013 to ADYARD Work in progress for the following: Contract for platform transportation and installation Contract for offshore & onshore pipeline procuremen
Slide 29: Dana Gas: Relative Valuations
Dana Gas: Relative Valuations www.danagas.com 29
Slide 30: Significantly undervalued relative to peers
Significantly undervalued relative to peers EV/EBITDA P/E 9 45 8 40 7 35 EV/EBITDA 2014e (x) P/EPS 2014e (x) 6 30 5 25 4 7.78 7.52 7.35 20 38.3 3 5.61 5.41 15 2 10 22.4 3.7 3.41 3.23 16.1 1 5 12.5 10.3 9.2 8.0 6.0 0 0 P/B 5 4 4 P/B 2014e (x) 3 3 2 3.85 2 2.89 1 2.15 1 1.22 1.02 0.99 0.84 0.59 0 www.
Slide 31: EV and Production valuation relative to peers
EV and Production valuation relative to peers Enterprise Value vs. Production EV ($bn) 2013 Production (kboepd) 13.4 6.2 5 90 H1 2013 Production (kboepd) Enterprise Value ($ bn) 80 4 70 60 3 50 2 2.2 40 30 1 20 10 0 0 www.danagas.com Source: Company Data, Bloomberg 31
Slide 32: Significantly undervalued relative to listed peers in international markets
Significantly undervalued relative to listed peers in international markets P/E ranking of Dana Gas Peers (Source: Bloomberg Consensus 4th February 2014) 60 2014e 50 2015e 40 P/E (X) 30 20 10 0 www.danagas.com Source: Bloomberg Consensus 32
Slide 33: Increased liquidity following Sukuk conversions
Increased liquidity following Sukuk conversions impacting recent performance www.danagas.com 33
Slide 34: Summary
Summary www.danagas.com 34
Slide 35: Summary
Summary ● Increase in uplift of LPG in KRI following repairs to the loading bay a positive for future profitability ● Drilling success in 2013 and Block 6 in Egypt and the commencement of the Zora project and provide visibility for future potential ● Review of Kurdistan assets provide for substantia
Slide 36: Reach Us: Dana Gas PJSC
Reach Us: Dana Gas PJSC 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 36