Slide 1: Half-Year 2019 Interim Results
Presentation Half-Year 2019 Interim Results
Slide 2: Corporate overview and operational highlights
Corporate overview and operational highlights Page 2
Slide 3: Corporate overview
Corporate overview • Solid first-half 2019 with rising revenues, strong profitability, record activity levels and with a material contribution from the North Sea • H1 2019 net profit of USD 119 million, double H1 2018 level • H1 2019 Company Working Interest (CWI) production of 107,100 barrels of oi
Slide 4: H1 2019 operational highlights
H1 2019 operational highlights • DNO ramps up operational activity with 14 wells spud in H1 2019 • On track to deliver largest annual drilling program in the Company’s 48-year history with 36 wells across portfolio, of which 23 development/infill and 13 exploration/appraisal wells • H1 2019 CWI prod
Slide 5: H1 2019 financial highlights
H1 2019 financial highlights • H1 2019 revenues of USD 470 million, up 63 percent from the same period a year earlier, of which USD 362 million from Kurdistan and USD 108 million from North Sea • Completed USD 780 million acquisition of Faroe Petroleum plc in March 2019 • USD 400 million bond issue
Slide 6: Foot on accelerator in Kurdistan: Tawke
Foot on accelerator in Kurdistan: Tawke • Flagship Tawke field remains largest IOC-operated oil field in Kurdistan • Production averaged 71,700 bopd in H1 2019 with three new producing wells brought onstream • Adding fourth rig, Viking-11, to support 13 well program in H2 2019, including a deep well
Slide 7: Foot on accelerator in Kurdistan: Peshkabir
Foot on accelerator in Kurdistan: Peshkabir • Peshkabir field now the second largest IOC-operated field in Kurdistan • Production averaged 55,000 bopd in H1 2019 with two new production wells brought on stream • Four additional wells currently drilling or scheduled to spud in H2 2019 • At completion
Slide 8: Foot on accelerator in Kurdistan: Baeshiqa
Foot on accelerator in Kurdistan: Baeshiqa • First Baeshiqa well targeting shallow Cretaceous reservoirs drilled to 1,511 meters and suspended pending completion of testing of adjacent Baeshiqa-2 well • Baeshiqa-2, targeting deeper Jurassic and Triassic reservoirs on the same structure drilled to 3,
Slide 9: Kurdistan drilling schedule
Kurdistan drilling schedule Development/Infill Appraisal/Exploration 2019 2020 Country License DNO Interest Operator Field/Well Q1 Q2 Q3 Q4 Q1 Tawke 75% DNO Peshkabir-10 Tawke 75% DNO Peshkabir-11 Tawke 75% DNO Peshkabir-3A Tawke 75% DNO Peshkabir-12 Tawke 75% DNO Peshkabir-13 Tawke 75% DNO Tawke-54
Slide 10: North Sea update
North Sea update • DNO in 89 licenses in Norway, 12 in the United Kingdom (UK), one in Ireland and two in the Netherlands • Awarded two new operated exploration licenses in the UK in Q2 2019 • Production diversified across 13 fields; nine in Norway and four in the UK • H1 2019 CWI production average
Slide 11: North Sea drilling schedule
North Sea drilling schedule Development/Infill Appraisal/Exploration 2019 2020 Country License DNO Interest Operator Field/ Prospect Q1 Q2 Q3 Q4 Q1 PL931 40 % Wellesley Songesand PL767 10 % Lundin Pointer PL870 20 % Equinor Pabow PL159 B 32 % Equinor Snadd Outer Outer PL644 20 % OMV Iris PL859 20 %
Slide 12: Financial review
Financial review Page 12
Slide 13: DNO financial results – key figures
DNO financial results – key figures Revenue Netback Operating profit USD million USD million USD million 400 200 250 369 230 177 180 350 160 155 200 300 143 266 140 250 120 150 105 107 204 200 100 171 99 147 80 100 150 60 71 100 51 40 50 38 50 20 0 0 0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 20
Slide 14: Financial summary
Financial summary USD million Q2 2019 Q1 2019 Q2 2018 H1 2019 H1 2018 Revenue 265.7 204.1 147.0 469.7 289.3 Cost of goods sold -133.8 -117.0 -74.1 -250.7 -149.5 Gross profit 131.9 87.1 72.9 219.0 139.8 Expensed exploration -18.3 -32.8 -11.0 -51.2 -37.8 Administrative expenses 2.3 -15.4 -5.7 -13.1 -1
Slide 15: Operational spend
Operational spend Annual operational spend USD million Capex Expex Lifting 900 800 680 700 600 500 400 293 300 259 200 125 100 0 2016 2017 2018 2019 (projected) • YTD operational spend of USD 274 million and on track for full year guidance of USD 680 million • Projected 2019 capex of USD 375 million
Slide 16: 2019 investment program
2019 investment program • Planned capital expenditure in 2019 of USD 375 million, of 2019 forecast capex and expex which USD 225 million in Kurdistan and USD 150 million in USD million the North Sea 25 • Kurdistan capital expenditure of USD 225 million of which half for development wells 150 • Explo
Slide 17: Q2 2019 cash flow
Q2 2019 cash flow USD million 700 600 500 310 400 300 77 -68 574 200 254 100 0 Cash at end Q1-2019 Cash from operations Investment activities Tax & finance Cash at end Q2-2019 • Q2 2019 cash flow from operations of USD 77 million, curbed by short-term working capital movements • Cash increase of USD
Slide 18: Capital structure
Capital structure Cash deposits Financial assets Equity ratio USD million USD million Percent 800 800 100 729 700 700 90 640 584 80 600 574 600 70 500 500 61 60 55 57 400 400 50 335 44 40 288 281 40 300 254 300 30 200 200 109 94 20 100 100 10 0 0 0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2018 2
Slide 19: Stellar track record in bond market
Stellar track record in bond market • New USD 400 million bond placement completed in May 2019 and maturing in Debt maturity profile May 2024 USD million 600 500 • Rolled over USD 60 million in nominal 400 value of DNO01 bonds, with USD 140 300 million outstanding and maturing in 200 June 2020 100 0
Slide 20: 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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