Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — Q2 2014 Earnings Presentation
20 slides from Dno Asa Class A's earnings presentation, 2014
Slide 1: Interim Presentation Second Quarter 2014
Interim Presentation Second Quarter 2014
Slide 2: Operational Review
Operational Review Bijan Mossavar-Rahmani, Executive Chairman Interim Presentation 2014 - Second Quarter 2
Slide 3: EST -1971
EST -1971
Slide 4: Q2 2014 and year-to-date highlights
Q2 2014 and year-to-date highlights • Foot still firmly on the accelerator in Q2 • Record gross production of 138,569 barrels of oil equivalent per day (boepd), up 76 percent from Q1 • Record company working interest (CWI) production of 81,669 boepd, up 78 percent from Q1 • In Kurdistan, record Q2 C
Slide 5: CWI production
CWI production 90,000 Kurdistan local sales Kurdistan volumes delivered at Fish Khabor for transport to Ceyhan Oman Yemen 81,669 80,000 2,764 7,691 70,000 60,000 24,110 45,744 50,000 2,505 39,965 39,170 40,000 38,354 7,597 4,999 4,143 3,907 5,745 7,835 30,000 10,736 21,512 47,105 17,381 27,960 12,77
Slide 6: Charging ahead at Tawke
Charging ahead at Tawke • In Q2, three new single day records set at Tawke: daily production of 133,192 barrels, daily export deliveries of 126,048 barrels and daily local sales of 114,760 barrels • Average quarterly production increased to 109,913 bopd (split 65/35 local sales versus export) • T-24
Slide 7: Dohuk and Erbil update
Dohuk and Erbil update Dohuk license • Sales of gas from the Summail field to the Dohuk power plant commenced in late May and currently average 40 mmcf/d from first well • Second well suspended for further evaluation and stimulation • Third Summail well drilled and preparing to test • Summail produc
Slide 8: Oman and UAE
Oman and UAE Oman Block 8 • West Bukha-5 well returned to service following extensive workover and tested 2,600 bopd and 10 mmcf/d of gas, increasing Block 8 deliveries to around 10,000 bopd and 45 mmcf/d • New development well planned in 2015 Oman Block 36 • Work program established for new 18,000
Slide 9: Yemen and Tunisia
Yemen and Tunisia Yemen • Labor union strike ended after ten days, minor production effect • Q2 CWI production averaged 2,764 bopd • Civil unrest continues to delay drilling and development activity Tunisia Sfax offshore permit • Renewed exploration phase with two commitment wells to be drilled in 2
Slide 10: Drilling activity overview
Drilling activity overview Production and development drilling schedule 2014 2015 Country Well name DNO interest Q2 Q3 Q4 Q1 Q2 Tawke-24 55.00 % Tawke-26 55.00 % Tawke-25 55.00 % Kurdistan Tawke-28 55.00 % Tawke-27 55.00 % Summail-2 40.00 % Hawler-1S/T 40.00 % Tasour-28 38.95 % Yemen Yaalen-4S2 40.0
Slide 11: Expanding a successful MENA franchise
Expanding a successful MENA franchise DNO present in MENA since 1998 • MENA offers significant oil and gas potential • Notwithstanding the challenges of operating in a region in ongoing turmoil • Staying ahead of our competition – and ahead of the opportunities • Unique portfolio of 20 exploration,
Slide 12: Continuing commitment to Kurdistan
Continuing commitment to Kurdistan • This past quarter marked the 10th anniversary of DNO’s entry into Kurdistan • First Western exploration and production company in the region when security conditions were challenging like today, albeit different in scope and source • Moreover, the oil industry se
Slide 13: Financial Review
Financial Review Haakon Sandborg, CFO Interim Presentation 2014 - Second Quarter 13
Slide 14: Financial results – key figures
Financial results – key figures • Q2 revenues up 27 percent on increased production • Increase in netback to USD 101 million in Q2 • YTD financial results do not include contribution of value from Tawke oil exports Revenues (USD Million) Netback (USD Million) Operating profit (USD Million) 140 140 8
Slide 15: Q2 2014 revenue and gross profit distribution
Q2 2014 revenue and gross profit distribution Revenues – USD Million Gross Profit – USD Million Oman: 3.7 Oman: 24 Yemen: 4.4 Yemen: 17 Kurdistan: 103 Kurdistan: 59.9 Interim Presentation 2014 - Second Quarter 15
Slide 16: Financial Summary
Financial Summary USD Million Q2 2014 Q1 2014 Q2 2013 YTD 2014 YTD 2013 Highlights • YTD sales Sales 143.4 112.8 130.9 256.2 234.2 increase on higher Cost of goods sold -78.9 -71.1 -57.0 -150.0 -106.8 local sales from Tawke Gross profit 64.5 41.8 74.0 106.2 127.3 • YTD lifting cost Expensed explorat
Slide 17: Increasing investments in line with plan
Increasing investments in line with plan Capex and capitalized exploration 110 Kurdistan Oman Yemen UAE Tunisia Other • Capex and capitalized exploration increased 100 to USD 97 million in Q2, mainly for capacity 90 expansion and development in Kurdistan 80 • YTD capex and capitalized exploration US
Slide 18: Q2 cash flow movements
Q2 cash flow movements • Q2 cash flow from operations reduced by build-up in working capital • Capital expenditures in the quarter still mainly funded by cash flow 350 300 71.7 -9.5 -4.8 250 200 242.2 -97.2 -7.8 195.1 150 100 50 0 Cash at start Cash generated Income taxes Interest Net expenditures P
Slide 19: Robust capital structure
Robust capital structure • Maintained strong balance sheet with low leverage • Capacity to execute work program and capitalize on new opportunities Cash deposits (USD Million) Financial assets* (USD Million) Equity ratio (percent) 300 200 273 266 60% 59% 60% 58% 262 180 57% 57% 250 242 160 50% 195 1
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