Slide 1: 2020 Q3 Interim Results Presentation
2020 Q3 Interim Results Presentation
Slide 2: Corporate overview and operational highlights
Corporate overview and operational highlights Cover photo: DNO supervisor isolating down hole safety valve on Kurdistan well Page 2
Slide 3: DNO boosts Kurdistan output
DNO boosts Kurdistan output • Increased Q3 2020 production notwithstanding COVID-19 imposed operational challenges and weak oil prices • While expecting to replace significant share of reserves produced this year in Kurdistan • And slashing per barrel carbon emissions by half in DNO operated fields
Slide 4: Q3 2020 operational highlights
Q3 2020 operational highlights • Q3 2020 operated production in Kurdistan of 113,700 barrels of oil per day (bopd), up from 102,000 bopd in Q2 2020 • Of which 80,200 bopd represented Company Working Interest (CWI) production net to DNO in Kurdistan in Q3 2020 (71,900 bopd in Q2 2020) • North Sea con
Slide 5: Q3 2020 financial highlights
Q3 2020 financial highlights • Revenues more than doubled to USD 163 million in Q3 2020 up from USD 72 million in Q2 2020 on back of improved oil prices and higher cargo liftings of previously produced oil in the North Sea • Netback of USD 101 million in Q3 2020 up from USD 13 million in Q2 2020 on
Slide 6: Gas capture and injection lifts oil recovery, cuts CO2 emissions
Gas capture and injection lifts oil recovery, cuts CO2 emissions • DNO’s USD 110 million Peshkabir Gas Capture and Tawke Injection Project now onstream and has reached two billion cubic feet of gas injected • Delivering positive reservoir response at Tawke field by adding up to 5,000 bopd of product
Slide 7: Activity picking up in North Sea
Activity picking up in North Sea • North Sea CWI production essentially unchanged at 17,700 boepd in Q3 2020 (17,800 boepd in Q2 2020) • Of which 12,900 bopd of oil and condensate and 29 million cubic feet a day (MMcfd) of gas in Q3 2020 (13,300 bopd and 27 MMcfd in Q2 2020) • Two exploration wells
Slide 8: Historical production and revenue trends
Historical production and revenue trends CWI production Oil and gas revenues boepd USD million 120,000 1,200 100,000 1,000 80,000 800 60,000 600 40,000 400 20,000 200 0 0 Middle East North Sea Middle East North Sea Page 8
Slide 9: Financial review
Financial review Page 9
Slide 10: DNO financial results – key figures
DNO financial results – key figures Revenues Netback Operating profit USD million USD million USD million 300 250 250 275 266 214 200 250 227 200 150 206 177 99 100 200 44 163 150 135 50 150 0 109 101 -12 100 -50 100 72 -100 -81 -106 50 -150 50 13 -200 -208 0 0 -250 Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2
Slide 11: Financial summary
Financial summary USD million Q3 2020 Q2 2020 YTD 2020 YTD 2019 Revenues 163.0 72.1 440.7 696.7 Production costs -48.9 -57.9 -165.5 -170.8 Movement in overlift/underlift -27.1 24.4 -3.8 4.0 Depreciation, depletion and amortization -82.0 -92.1 -281.6 -222.9 Cost of goods sold -158.1 -125.6 -450.9 -38
Slide 12: Annual operational spend
Annual operational spend USD million Capex Expex Opex Abex 900 786 800 700 237 600 515 500 187 400 220 300 200 115 339 100 150 0 2019 2020 (projected) Page 12
Slide 13: 2020 operational spend by region
2020 operational spend by region USD million Kurdistan North Sea 600 515 500 400 300 187 200 114 125 100 89 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 (projected) 2020 (projected) • North Sea operational spend shown before adjustments for tax refunds, but includes transport and processing tariffs Page 13
Slide 14: Q3 2020 cash flow
Q3 2020 cash flow USD million 700 600 427 500 5 -32 -27 373 400 300 200 100 0 Cash at Cash from Investment Tax & Cash at end Q2 2020 operations activities finance end Q3 2020 • Cash from operations reduced by USD 70 million change in working capital during Q3 2020 Page 14
Slide 15: Capital structure
Capital structure Cash deposits Net interest-bearing debt Equity ratio USD million USD million Percent 800 800 100 700 700 90 624 586 80 600 574 600 559 543 537 513 70 486 500 500 427 434 60 409 400 373 400 50 40 40 37 36 300 300 32 33 32 30 200 200 20 100 100 10 0 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 Q1
Slide 16: 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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