Equinor ASA · OSL:EQNR
Equinor ASA — StatoilHydro — Q2 2009 Earnings Presentation
30 slides from Equinor ASA's earnings presentation, 2009
Slide 1: Solid performance in a demanding market
Classification: Confidential Status: Draft Solid performance in a demanding market 2nd quarter 2009
Slide 2: Continued high earnings
2 Continued high earnings 2Q 2009 (NOK bn.) Key characteristics of 2Q 2009 0.0 24.3 4.9 29.2 (20.2) 9.0 • Lower oil and gas prices • Solid operations • Good trading results • Strict cost management Tax on Adjusted Net Reported Adjusted adjusted earnings Income NOI Adjustments earnings earnings after
Slide 3: Items impacting income statement
3 Items impacting income statement (NOK bn.) 2Q 2009 2Q 2008 pre tax after tax pre tax after tax Impairment 3.3 3.0 (2.1) (2.1) Derivatives 0.5 1.2 (3.3) 0.3 Over/underlift 1.1 0.3 (1.8) (1.0) Other & eliminations 0.0 0.1 0.9 0.8 Impact on income statement 4.9 4.6 (6.3) (2.0)
Slide 4: Tax rate reconciliation 2Q 2009
4 Tax rate reconciliation 2Q 2009 Composition of tax Tax on Adjusted expense and effective adjusted Tax rate earnings tax rate earnings E&P Norway 20.7 (15.1) 73.0% International E&P 2.8 (0.7) 25.4% Natural Gas 4.2 (3.3) 79.9% Manufacturing & Marketing 1.4 (0.9) 61.5% Other 0.2 (0.2) 137.3% Total ad
Slide 5: Equity production affected by maintenance
5 Equity production affected by maintenance 1 1898 1, 2 1950 2 1845 1 000 boepd equity production 703 708 1195 1137 2Q 2008 Oil Gas 2Q 2009 2009 guidance 1) Average PSA effect is 116 000 boepd in the 2nd quarter of 2009, compared to 188 000 boepd in the 2nd quarter of 2008 2) Effect of OPEC cuts on
Slide 6: Adjusted earnings after tax by business area
6 Adjusted earnings after tax by business area (NOK bn.) 2Q 2009 2Q 2008 Adjusted earnings Adjusted earnings Business area pre tax after tax pre tax after tax E&P Norway 20.7 5.6 46.7 11.7 International E&P 2.8 2.1 5.9 3.1 Natural Gas 4.2 0.8 1.9 0.3 Manufacturing & Marketing 1.4 0.5 1.2 0.7 Other 0
Slide 7: Reducing cost base – increasing efficiency
7 Reducing cost base – increasing efficiency Further high-grading of exploration program Further cost reductions 2010 1.0 Additional cost reductions introduced in 2009 1-1.5 Merger synergies at 7 bn. NOK 1.5 2010 Total annual savings (bn. NOK) 2009 7 bn. NOK Total annual savings annual pre-tax (bn.
Slide 8: Cash flow from operations 2009
8 Cash flow from operations 2009 Cash flow from operations before Taxes paid • Solid financial position tax • Strong cash generation in challenging market conditions • Continued high investment level 1 84 (50) Cash flows investing activities (Net) (39) 1 Cash provided by operating activities (39) +
Slide 9: Guiding
9 Guiding • Equity production • 2009: 1.95 million boepd • 2012: 2.2 million boepd • Capex 2009: USD ~13.5bn • Exploration 2009 • Expenditures: USD ~2.7bn • Activity ~ 70 wells • Unit Production Cost • 2009-2012: NOK 33-36/boe • 2009: Upper range
Slide 10: Solid performance in a demanding market
Classification: Confidential Status: Draft Solid performance in a demanding market 2nd quarter 2009
Slide 11: Supplementary information
11 Supplementary information Net financial items 2009 12 Development in net debt to capital employed 13 Long term debt redemption profile 14 Adjusted earnings – 1Q09 vs 2Q09 15 Adjusted earnings break down Natural gas 16 Adjusted earnings break down M&M 17 E&P Norway production per field – 2Q09 18 I
Slide 12: Net financial items 2Q 2009
12 Net financial items 2Q 2009 Interest income Net foreign Interest and and other exchange other net finance financial items gains/losses expenses (0.1) 1.8 Net financial NOK bn items 2Q 09 (6.4) (4.8)
Slide 13: Development in net debt to capital employed
13 Development in net debt to capital employed Net financial liabilities Net debt to capital employed* 75.6 28% ** 21% 51.7 ** 20%** NOK bn 46.0 18% 43.8 43.5 17% 12% 25.5 2006 2007 2008 1Q 09 2Q 09 2006 2007 2008 1Q 09 2Q 09 * Debt to capital employed ratio = Net financial liabilities/capital emplo
Slide 14: Long term debt portfolio redemption profile 30.06.2009
14 Long term debt portfolio redemption profile 30.06.2009
Slide 15: Adjusted earnings – 1Q 2009 vs. 2Q 2009
15 Adjusted earnings – 1Q 2009 vs. 2Q 2009 60 50 40 9.0 2.5 0.9 0.8 0.1 NOK bn 30 0.2 20 36.0 29.2 10 0 1Q 2009 E&P Norway International Natural Gas Manufacturing Other Eliminations 2Q 2009 E&P & Marketing
Slide 16: Adjusted earnings break-down- Natural Gas
16 Adjusted earnings break-down- Natural Gas Marketing and Trading Processing and Transportation 3.3 NOK bn 4.2 1.9 2.4 0.1 1.8 1.8 2Q 2008 2Q 2009
Slide 17: Adjusted earnings break-down– Manufacturing & Marketing
17 Adjusted earnings break-down– Manufacturing & Marketing Energy and Retail Manufacturing 1.4 Oil sales, trading and 0.4 supply 1.2 0.3 NOK bn 0.8 1.5 0.1 (0.5) 2Q 2008 2Q 2009
Slide 18: StatoilHydro production per field YTD 2009
18 StatoilHydro production per field YTD 2009 StatoilHydro-operated StatoilHydro share Produced volumes Partner-operated StatoilHydro share Produced volumes 1000 boed Oil Gas Total 1000 boed Oil Gas Total Alve 85.00 % 6.6 10.0 16.6 Ekofisk 7.60 % 21.2 3.6 24.8 Brage 32.70 % 10.3 0.8 11.1 Enoch 11.78
Slide 19: International E&P equity production per field 2Q 2009
19 International E&P equity production per field 2Q 2009 E&P International Produced equity volumes - StatoilHydro share StatoilHydro share Liquids Gas Total Alba 17.00% 5.8 5.8 Caledonia 21.32% 0.0 0.0 Jupiter 30.00% 1.3 1.3 Schiehallion 5.88% 1.3 0.0 1.4 Lufeng 75.00% 3.2 3.2 Azeri Chiraq (ACG EOP)
Slide 20: Exploration StatoilHydro group
20 Exploration StatoilHydro group NOK bn. 2Q 2009 2Q 2008 Exploration expenses IFRS 1.4 1.4 Exploration expenses - Norway 3.0 0.5 Exploration expenses - International NOK bn. 2Q 2009 2Q 2008 Exploration expenditure 4.0 3.7 Exploration expenditure (activity) 2.2 0.4 Expensed, previously capitalised e
Slide 21: Manufacturing & Marketing: Margins and prices
21 Manufacturing & Marketing Margins and prices FCC NWE refining margins Methanol contract price USD/bbl EUR/ton 2009 2008 550 14 500 12 450 10 400 350 8 300 6 250 4 200 150 2 100 0 50 J F M A M J J A S O N D J F M A M J J A S O N D
Slide 22: Dated Brent development NOK vs USD
22 Manufacturing & Marketing Dated Brent development NOK VS USD Brent Dated in US$ and NOK 160 800 140 700 120 600 100 500 NOK/bbl US$/bbl 80 400 60 300 40 200 20 100 0 0 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Brent Dated in US$ Brent Dated in NOK
Slide 23: Reconciliation of adjusted earnings to net operating income
23 Reconciliation of adjusted earnings to net operating income
Slide 24: Reconciliation ROACE
24 Reconciliation ROACE [Calculation of numerator and denominator used in ROACE calculation [12] Twelve months ended \(in NOK billion, except percentages) 30 June 2003 30 June 2008 31 December 2008 |Net income for the last 12 months 12.3 55.7 43.3 \|After-tax net financial items for the last 12 mont
Slide 25: Reconciliation of overall operating expenses to production cost
25 Reconciliation of overall operating expenses to production cost
Slide 26: Reconciliation of net debt to capital employed
26 Reconciliation of net debt to capital employed
Slide 27: Forward looking statements
27 Forward looking statements This Operating and Financial Review contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as "believe", "intend", "expect", "anticipate", "plan", "target" and similar expressions to identify forward-looking st
Slide 28: End notes
28 End notes 1. After-tax return on average capital employed for the last 12 months is calculated as net income after-tax net financial items adjusted for accretion expenses, divided by the average of opening and closing balances of net interest-bearing debt, shareholders' equity and minority intere
Slide 29: Investor relations in StatoilHydro
29 Investor relations in StatoilHydro Lars Troen Sørensen senior vice president dlts@statoilhydro.com +47 51 99 77 90 Morten Sven Johannessen IR officer mosvejo@statoilhydro.com+47 51 99 42 01 Anne Lene Gullen Bråten IR officer angbr@statoilhydro.com +47 99 54 53 40 Lars Valdresbråten IR officer lav
Slide 30: StatoilHydro is an integrated technology-based international energy company
StatoilHydro is an integrated technology-based international energy company primarily focused on upstream oil and gas operations. Headquartered in Norway, we have more than 30 years of experience from the Norwegian continental shelf, pioneering complex offshore projects under the toughest conditions