Slide 1: Interim Presentation First Quarter 2016
Interim Presentation First Quarter 2016
Slide 2: Corporate overview and operational highlights
Corporate overview and operational highlights Page 2 4 May 2016 First Quarter 2016 – Interim Presentation
Slide 3: Corporate overview
Operational review Corporate overview • On track to profitability in 2016 • Financial performance bolstered by higher oil prices and seven consecutive monthly payments for oil produced in Kurdistan, the last three in line with contractual entitlements • Normalization of payments has led to stepped u
Slide 4: Q1 2016 operational highlights
Operational review Q1 2016 operational highlights • Total DNO operated production in Q1 2016 of 97,000 barrels of oil equivalent per day (boepd) • Of which Tawke represented 91,700 bopd (87,200 bopd delivered for pipeline export through Turkey) • Kurdistan production impacted by extended closure of
Slide 5: Q1 2016 financial highlights
Operational review Q1 2016 financial highlights • Q1 revenues of USD 50 million, of which Kurdistan share was USD 47 million • Fourth consecutive quarter in which DNO revenues totaled USD 50 million or higher • Planned capital investments totaling USD 100 million in 2016 funded by cash from operatio
Slide 6: Kurdistan's improving payment situation
Operational review Kurdistan’s improving payment situation • Since September 2015, seven monthly payments received from Kurdistan totaling USD 175 million, of which USD 128 million net to DNO • In Q1, three payments totaling USD 65 million (USD 48 million net to DNO) received for Tawke deliveries to
Slide 7: Planned Tawke investments in 2016
Operational review Planned Tawke investments in 2016 • Foot back on the accelerator in Kurdistan • At Tawke license, one rig currently active with plans to add two more by mid-year • Completed workovers of three wells in Q1 reversing declines and adding 10,000 bopd in incremental production in 30 da
Slide 8: Other drilling activity
Operational review Other drilling activity • In Kurdistan, planning Q3 spud of Peshkabir-2 well to appraise Jurassic discovery and explore Cretaceous horizon • Drilling to be completed by year-end and if successful, Peshkabir field to be quickly brought on production using existing infrastructure •
Slide 9: Financial review
Financial review Page 9 4 May 2016 First Quarter 2016 – Interim Presentation
Slide 10: DNO financial results – key figures
Financial review DNO financial results – key figures Revenues Netback USD million Operating profit USD million USD million 60 50 55 55 100 52 40 50 80 50 30 24 25 25 60 20 40 10 40 10 20 8 30 0 0 26 0 -10 -20 20 -20 -23 -40 -30 10 -60 -40 -37 -80 -69 -50 -81 0 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q1 15 Q2
Slide 11: Financial summary
Financial review Financial summary USD million Q1 2016 Q4 2015 Q1 2015 2015 Sales 49.6 54.5 26.0 187.4 Cost of goods sold -30.7 -26.7 -61.8 -197.0 Gross profit 18.9 27.9 -35.8 -9.5 Expensed exploration -3.5 -4.1 7.0 -23.5 Administrative expenses -6.8 -6.2 -4.3 -19.0 Other operating expenses -0.6 -19
Slide 12: Investment program
Financial review Investment program Capex and capitalized exploration USD million Kurdistan Oman Yemen UAE Tunisia Other 350 297.3 300 288.3 250 197.2 200 150 100 50.7 50 5.6 0 2012 2013 2014 2015 YTD 2016 • Capex spending in Q1 of USD 5.6 million split between Tawke and Block 36 exploration well •
Slide 13: Q1 2016 cash flow
Financial review Q1 2016 cash flow 300 USD million 31.7 -5.6 -2.2 1.0 200 261.8 237.6 100 0 Cash at start period Cash generated from Exploration & Financial activities Interest Cash at end period operations development investments • Solid Q1 operational cash flow of USD 31.7 million • Trade and othe
Slide 14: Capital structure
Financial review Capital structure Cash deposits Financial assets Equity ratio USD million USD million Percent 500 30 28 450 70% 450 25 400 60% 22 350 20 50 20 50% 46 18 43 43 300 39 262 247 238 40% 250 15 204 200 14 30% 10 150 20% 100 5 10% 50 0 0 0% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q1 15 Q2 15 Q3 15
Slide 15: Important notice
Important notice This presentation (the “Presentation”) has been prepared and delivered by DNO ASA (“DNO” or the “Company”). Copyright of all published material including photographs, drawings and images in this document remains vested in DNO and third party contributors as appropriate. Accordingly,
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