Dana Gas PJSC · ADX:DANA
Dana Gas PJSC — Q2 2013 Earnings Presentation
25 slides from Dana Gas PJSC's earnings presentation, Aug 14, 2013
Slide 1: 2nd Quarter 2013 Financial Results
The Middle East’s Leading Private Sector Natural Gas Company 2nd Quarter 2013 Financial Results 14 August 2013 www.danagas.com 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking Forward-looking statements are based on certain statements which may be identified by their use of assumptions and expectations of future events. The words like “plans,” “expects,” “will,” “anticipates,” Company, its subsidiaries and its affiliat
Slide 3: Presentation Outline
Presentation Outline Performance Highlights Financial Performance Country Business Highlights – Egypt – Kurdistan – UAE Summary www.danagas.com 3
Slide 4: Performance Highlights
Performance Highlights Patrick Allman-Ward – CEO Designate www.danagas.com 4
Slide 5: Performance Highlights: 2Q 2013 vs 2Q 2012
Performance Highlights : 2Q 2013 vs 2Q 2012 Production Production of 61,700 BOEPD, up 5% on Q-o-Q basis In Egypt, production up 12% to 34,700 BOEPD as a result of tie-in of earlier discoveries Production lower by 3% to 27,000 BOEPD in KRI due to lack of LPG production New Exploration Opportunity Egy
Slide 6: Performance Highlights: 1H 2013 vs 1H 2012
Performance Highlights : 1H 2013 vs 1H 2012 HSSE Strong focus on HSSE continues across the Group with improvements across all performance metrics Production Group production up at 61,500 BOEPD, marginally higher on a year-on-year basis In Egypt, total production up 4% to 34,200 BOEPD and in July 201
Slide 7: Financial Performance
Financial Performance Azfar Aboobakar – Head Financial Control & Reporting www.danagas.com 7
Slide 8: Financial Highlights: 2Q 2013 vs 2Q 2012
Financial Highlights: 2Q 2013 vs 2Q 2012 Percentage (In $ million) Q2 – 2013 Q2 – 2012 Change Gross Revenue 144 151 (5) Net Profit 27 49 (45) EBITDAX 80 99 (19) EPS (AED fils) 1.5 2.7 (44) Positive impact of higher production offset by lower hydrocarbon prices and lack of LPG revenue, resulting in l
Slide 9: Financial Highlights: 1H 2013 vs 1H 2012
Financial Highlights: 1H 2013 vs 1H 2012 Percentage (In $ million) 1H – 2013 1H - 2012 Change Gross Revenue 296 342 (13) Net Profit 93 105 (11) EBITDAX 168 220 (24) EPS (AED fils) 5.2 5.8 (10) Decline in revenue mainly due to lower hydrocarbon prices in second quarter of 1H 2013 and lack of LPG prod
Slide 10: Profit After Tax Bridge – 2Q 2013 vs 2Q 2012
Profit After Tax Bridge – 2Q 2013 Vs 2Q 2012 (all figures in $ million) 60 50 (7) 40 0 (5) 30 (9) 1 (1) 3 49 (4) 20 27 10 0 Q2 2012 Revenue - Revenue - Royalty & COS and Investment G&A Finance cost Exploration Q2 2013 Profit Price effect Quantity Tax DD&A & Finance expenditure expenditure Profit eff
Slide 11: Profit After Tax Bridge – 1H 2013 vs 1H 2012
Profit After Tax Bridge – 1H 2013 Vs 1H 2012 (all figures in $ million) 120 100 3 (1) (4) (16) 2 5 80 9 (30) (1) 34 60 105 (13) 93 40 20 0 1H 2012 Revenue - Revenue - Royalty & COS and Investment & Provision for Change in G&A Share of loss Finance cost Exploration 1H 2013 Profit Price effect Quantit
Slide 12: Production
Production Rounded to nearest hundred Q2 2013 Vs Q2 2012 2013 2012 1H 2013 Vs 1H 2012 70,000 70,000 Production (Boepd) 61,700 61,500 60,900 58,900 60,000 60,000 50,000 50,000 40,000 40,000 34,700 34,200 32,800 31,000 30,000 27,000 27,900 30,000 27,300 28,100 20,000 20,000 10,000 10,000 0 0 Total Egy
Slide 13: Average Realized Prices
Average Realized Prices Q2 2013 Vs Q2 2012 2013 2012 1H 2013 Vs 1H 2012 120 120 112 105 109 106 104 102 100 95 100 100 80 77 80 67 66 61 60 60 40 40 20 20 0 0 Condensate LPG (USD/boe) Crude Oil Condensate LPG (USD/boe) Crude Oil (USD/boe) (USD/bbl) (USD/boe) (USD/bbl) * Liquids benchmarked to Brent
Slide 14: Billing & Collection – As of June 2013
Billing & Collection – As of June 2013 (all figures in $ million) Egypt Kurdistan Region of Iraq 95% 300 55% 180 171 163 258 160 250 140 200 120 US$ Million US$ Million 100 68% 150 143 81 56% 80 109 60 55 100 61 40 50 20 0 0 YTD 2013 2012 YTD 2013 2012 Billing Collection Billing Collection Collectio
Slide 15: Country Business Highlights
Country Business Highlights Leonardo Salvadori – Head Business Development www.danagas.com 15
Slide 16: Egypt: Business Environment
Egypt: Business Environment Economic and political situation likely to stabilize with wider relations with the international investment community - over $ 12 billion in support by Saudi Arabia, UAE and other Gulf Arab states seen as a strong positive for economic development Foreign reserves up to $
Slide 17: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations Discoveries: – Begonia -1 tested 1.6 kboed El Wastani – Reserves estimated at 15 bcf New Development Leases: – Sama Amendment (West Sama) – El Basant Amendment (Allium) – Balsam – Begonia Begonia – 1 New Fields on Stream: Discovery – South Abu El Naga (W. Manzala) Av. Pr
Slide 18: Kurdistan Operations
Kurdistan Operations • Total net production averaged at 27,300 BOEPD during 1H 2013: – 130 MMSCFD of natural gas – 5730 Bbl/D of condensate • Enhanced bench strength by placing key positions • Completed engineering, fabrication, installation and stress testing of the new LPG loading bay resulting in
Slide 19: UAE: Zora Project Update
UAE: Zora Project Update • Project scope includes the following: – Offshore platform – Offshore & Onshore Pipeline (35 km offshore & 2.5km onshore – Gas Treatment Onshore Plant (to receive 40 MMSCFD of gas and 300 bbl/day associated hydrocarbon condensate • Commercial and technical bids evaluated an
Slide 20: Summary
Summary Patrick Allman-Ward – CEO Designate www.danagas.com 20
Slide 21: Summary
Summary ● Taking a risk based approach to HSSE and asset integrity managing to ALARP ● Improving foreign currency reserves situation in Egypt may positively impact our receivables situation ● Taking a cautious approach towards capital investments keeping this in line with cash collections with a pri
Slide 22: Reach Us: Dana Gas PJSC
Reach Us: Dana Gas PJSC Robinder Singh Investor Relations Director Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : rsingh@danagas.com Direct : +971 6 519 4401 Fax : +971 6 556 6522 22
Slide 23: HSE: On Track to Outperform Performance Metrics
HSE On Track to Outperform Performance Metrics 2012 - a turning point for Dana Gas with several lessons learnt. We implemented new strategies that resulted in the following: – All three operating areas have shown improvements in HSE performance – On track to beat all the HSE metrics on our Group sco
Slide 24: Group Key Risks and Mitigations
Group Key Risks and Mitigations BUSINESS RISK MITIGATIONS & COMMENTARY Receivables risk management through ongoing discussions with key stakeholders in Egypt and KRI. Conservative capital allocation and cash utilization policy, while Financial Risk maintaining BAU, to stay. Longer term funding being
Slide 25: Egypt – 12 months drilling performance
Egypt – 12 months drilling performance Creating records on cost/time and maintaining focus on HSE – Drilled 3,000m slim hole well in 17 days with total cost $1.7 million (historical performance of 25-30 days and $2.5-3 million) Lowest cost well drilled in the Nile delta onshore through: – applicatio