Aker Bp Asa · OSL:AKRBP
Aker Bp Asa — Det norske oljeselskap — Q1 2016 Earnings Presentation
20 slides from Aker Bp Asa's earnings presentation, Apr 29, 2016
Slide 1: Q1 2016 Det norske oljeselskap ASA
Q1 2016 DET NORSKE OLJESELSKAP ASA KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 29 APRIL 2016
Slide 2: Disclaimer
Disclaimer This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about globa
Slide 3: Highlights
DET NORSKE Highlights Production • Q1-16 production of 60.6 mboepd, +12% from Q4-15 Finance • Q1 EBITDA USD 129 million, EPS 0.16 (USD) • USD 1.23 billion in cash and undrawn debt facilities Development projects • Ivar Aasen development on plan and budget • Johan Sverdrup drilling commenced •
Slide 4: Statement of income
FINANCIALS Statement of income Income statement (USD mill) Q1 2016 Q1 2015 FY 2015 Revenues 205 329 1,222 Production costs 34 39 141 Other operating expenses 5 14 52 EBITDAX 165 275 1,029 Exploration expenses 36 15 76 EBITDA 129 261 953 Depreciation 114 122 481 Impairment losses 38 53 430 Operating
Slide 5: Statement of financial position
FINANCIALS Statement of financial position Assets Equity and liabilities (USD mill) 31.03.16 31.03.15 (USD mill) 31.03.16 31.03.15 Goodwill 739 1,134 Equity 371 654 Other intangible assets 924 940 Other provisions for liabilities incl. P&A 461 505 (long) Property, plant and equipment 3,090 2,679 Def
Slide 6: Cash flow and liquidity
FINANCIALS Cash flow and liquidity Cash flow (USDm) Liquidity (USDbn) Operating cash flow covered ~80 percent of investments in the first quarter 2016 despite lower oil prices Undrawn credit Cash & cash equivalents 1,37 Net interest-bearing debt (book value) of USD 2.58 billion at the end of Q1-
Slide 7: Covenant amendment process progressing
FINANCING Covenant amendment process progressing Leverage ratio Covenant amendment package accepted by bank consortium 7,0x with agreement to ease covenant levels to end 2019 6,0x 5,0x Company working to achieve an amicable solution with 4,0x bondholders in DETNOR02 3,0x 2,5x Old covenant thresh
Slide 8: Oil and gas production
PRODUCTION Oil and gas production Net production (boepd) and production efficiency Q1 2016 production of 60.6 mboepd Q1 2016 production efficiency of 99.3% Realized oil price of USD 37/bbl Production guidance reiterated • 2016 production expected between 55 – 60 mboepd 8
Slide 9: Further developing the Alvheim area
GREATER ALVHEIM AREA Further developing the Alvheim area Alvheim area New projects in the Alvheim area 3 new wells planned to come on stream in 2016 BoaKamNorth drilling completed in January • Ahead of schedule and budget • Well to be tied in to Alvheim infrastructure in Q2-2016 • First oil expe
Slide 10: Viper-Kobra development
GREATER ALVHEIM AREA Viper-Kobra development Drilling program ongoing, first oil in Q4-2016 Viper Viper • Pilot well confirmed regional drawdown and connection to aquifer • Drilled and completed Q1 2016, 19 days ahead schedule • Preliminary post-drill assessment indicate 4 – 7 mmboe (gross) vs the
Slide 11: Ivar Aasen project on plan and budget
IVAR AASEN (~35%1) Ivar Aasen project on plan and budget Recent events Detailed timeline Construction of topside has reached 98% completion in 2012 2013 2014 2015 2016 Singapore H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Handover of sub-systems for commissioning and testing for Concept selection topside and
Slide 12: Upcoming milestones
IVAR AASEN Upcoming milestones Load out of topside and sail away from Hook-up, commissioning, testing and Singapore – Q2 2016 preparation for first oil – Q3/Q4 2016 Topside installation – July 2016 First oil – December 2016 Subsea scope finished – Q3 2016 12
Slide 13: Offshore hook-up and commissioning
IVAR AASEN Offshore hook-up and commissioning Handover of subsystem to operations before sail-away to minimize offshore work scope Det norske and Aibel working as one integrated team with common KPIs and incentives to minimize offshore work hours Proactive planning and coordination of all offs
Slide 14: Johan Sverdrup progressing according to plan
JOHAN SVERDRUP (11.5733%) Progressing according to plan Pre-drilling with Deepsea Atlantic commenced in March • 8 oil production wells and a similar number of water injection wells are planned to be pre-drilled • 35 wells are planned to be drilled in Phase 1 Platform construction ongoing: • Livi
Slide 15: Drilling campaign in Krafla/Askja area ongoing
EXPLORATION Drilling campaign in Krafla/Askja area ongoing 2016 drilling campaign Map of Krafla/Askja area Gross proven resources of 140 – 220 mmboe in PL035/272 prior to 2016 drilling campaign Minor oil discovery at Madam Felle (1-3 mmboe gross) • Viti side-track dry Askja SE spudded in April
Slide 16: Strengthened position in the North of Alvheim area
GROWTH Strengthened position in the North of Alvheim area North of Alvheim* area holds gross mean contingent resouces of 160-170 mmboe Further volume upside from exploration prospects in the area Acquisition of licenses from Centrica Resouces Norge AS** • 30% in PL 442 + operatorship – Frigg G
Slide 17: “Forward” improvement program progressing well
IMPROVEMENT “Forward” improvement program progressing well A large number of improvement initiatives are being Exploration Effectiveness implemented to reduce expenditures and increase quality • Covering all disciplines - program sponsored by the CEO • Initiatives aim to reduce run-rate costs Proj
Slide 18: 2016 guidance
OUTLOOK 2016 guidance Item Guidance 2016 CAPEX USD 925 – 975 million 2016 EXPEX USD 160 – 170 million 2016 Production cost USD 8 – 9 per boe* 2016 production 55 – 60 mboepd Based on USD/NOK 8.8 * From 2016, production cost includes shipping & handling cost, budgeted at USD 1.2 per bbl after Det nors
Slide 19: Summary and outlook
OUTLOOK Summary and outlook Development projects • Aasen topside heavy lift in July, first oil in December • Johan Sverdrup drilling and construction • First oil at BoaKamNorth in Q2, drilling of Kobra well Financing • Available liquidity of USD 1.23 billion • Finalize discussions with bondholde
Slide 20: EF TNORSKE
EF TNORSKE www.detnor.no
Det norske oljeselskap — Q1 2016 Earnings Presentation on 6ix