Nostrum Oil & Gas Plc · LSE:NOG
Nostrum Oil & Gas — FY2017 Earnings Presentation
15 slides from Nostrum Oil & Gas's earnings presentation, December 2017
Slide 1: Full Year 2017 Results Presentation
Full Year 2017 Results Presentation
Slide 2: FY 2017 Financial Results
FY 2017 Financial Results Establishing a solid platform for growth 1 • US$231.6 million EBITDA1 generated from 37,844 boepd of sales volumes at a 57.1% margin 2 • Cash & cash equivalents2 of US$127.0 million and net debt of US$960.9 million as at 31 December 2017 3 • 9,000 boepd of 2018 production h
Slide 3: Sustainable strategy to grow production
Sustainable strategy to grow production 1 • Focus drilling on production wells in H1 2018 Delivering near term production growth • Bring on a low pressure system in H1 2018 to extend life of older producing wells 2 • Continue appraising the Chinarevskoye Field and converting probable reserves and re
Slide 4: Snapshot of key figures from 2017
Snapshot of key figures from 2017 Sales volumes Opex / boe1,2 50,000 5.0 38,576 39,046 37,844 4.4 40,000 4.1 4.0 3.7 US$ / boe 30,000 boepd 20,000 3.0 10,000 - 2.0 FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 Transport costs / boe2 Gross debt / net debt 7.0 6.6 10.0x Gross Debt / LTM EBITDA 8.0x
Slide 5: Capital discipline
Capital discipline Balance sheet Hedging programme • US$127.0 million cash and cash equivalents1 as at 31 December • 9,000 boepd of 2018 production hedged at a floor price of 2017. US$60/bbl. • Net debt of US$ 960.9 million as at 31 December 2017. ➢ US$60/bbl put option was funded through a call spr
Slide 6: 2018 Cash Flow Bridge
2018 Cash Flow Bridge US$32m US$64m US$151m US$41m US$90m US$127m US$115m 2017 Closing Cash 2018 Operating 2018 Cash received 2018 GTU III 2018 Finance Drilling Capex 2018 Cash Flow from hedge Capex (net) Costs (net) Closing Cash (@ US$50 / bbl) (@ US$50 / bbl)¹ Fully financed to complete GTU III an
Slide 7: 2018 Ryder Scott Reserves Report
2018 Ryder Scott Reserves Report Chinarevskoye - Proven Chinarevskoye - Probable Trident - Probable • 358mmboe 2P reserves at the Chinarevskoye field 488mmboe ➢ Proven – 124mmboe 466mmboe ➢ Probable – 234mmboe 87mmboe 131mmboe • 22.9mmboe decrease in proven reserves due to: ➢ 14mmboe of production d
Slide 8: 2017 Financial Results
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Slide 9: Financial Overview – FY 2017
Financial Overview – FY 2017 US$m FY 2016 FY 2017 Revenue 348.0 405.5 EBITDA1 194.0 231.6 Profit before tax (65.5) 26.0 Current income tax expense (20.5) (13.9) Deferred income tax expense 3.0 (36.0) Net income (83.0) (23.9) Earnings per share (USc)2 (45.0) (13.0) Capital expenditure3 (200.3) (191.5
Slide 10: Balance Sheet Summary
Balance Sheet Summary Highlights Gross debt / net debt 10.0x • US$127.0m cash & equivalents1 Gross Debt / LTM EBITDA 8.0x Net Debt / LTM EBITDA Leverage ratio • Successful refinancing of US$960 million of bond debt with no maturities until 20222 6.0x 4.9x 4.7x 4.1x 4.4x 4.1x 4.0x 3.4x • 9,000 boepd
Slide 11: Supporting materials
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Slide 12: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 December 2016 In thousands of US dollars Notes 31 December 2017 Restated* NON-CURRENT ASSETS Exploration and evaluation assets 6 47,828 44,271 Goodwill 5 32,425 32,425 Property, plant and equipment 7 1,941,894 1,808,524 Restricted cash 12 6,663 5,981 A
Slide 13: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income For the year ended 31 December 2016 In thousands of US dollars Notes 2017 Restated* Revenue Revenue from export sales 262,767 244,586 Revenue from domestic sales 142,766 103,397 20 405,533 347,983 Cost of sales 21 (177,246) (182,180) Gross profit 228,28
Slide 14: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows For the year ended 31 December 2016 In thousands of US dollars Notes 2017 Restated* Cash flow from operating activities: Profit/(loss) before income tax 25,967 (65,539) Adjustments for: Depreciation, depletion and amortisation 21,22 122,986 131,585 Finance costs
Slide 15: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESEN