Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — FY2011 Earnings Presentation
37 slides from Dno Asa Class A's earnings presentation, 2012
Slide 1: Q4 and full year 2011 presentation
DNO International Q4 and full year 2011 presentation
Slide 2: Welcome and agenda
Q4 and full year 2011 presentation Welcome Tom Bratlie Director Corporate Communications and Public Affairs Operational and financial highlights Helge Eide Chief Executive Officer Nicholas Atencio Country Manager, Kurdistan Key financials Haakon Sandborg Chief Financial Officer Q&A Helge Eide (CEO)
Slide 3: Operational and financial highlights
Operational and financial highlights Helge Eide CEO and President
Slide 4: Strong development in 2011
Strong development in 2011 2011 vs. 2010 Record high production +130% • 2011 WI production of 39,966 bopd WI production up from 17,381 in 2010 Highest operating revenue ever +65% • Sales of NOK 2,070 million (1,252) Operating revenue 68% gross and 31% net profit margin +199% • NOK 1,419 million in E
Slide 5: Step change in financial performance
2011 compared with 2010: Step change in financial performance Key financial parameters (NOK Million) 2,500 2,070 2,000 1,752 1,500 1,419 1,385 1,322 1,252 2010 1,000 2011 653 474 500 380 0 Operating revenue EBITDA Net profit Netback Cash position -283 -500 Q4 and full year 2011 presentation 5
Slide 6: The Tawke field produced well above design capacity in 2011
The Tawke field produced well above design capacity in 2011 Gross production (bopd) 80,000 70,000 60,000 Average gross production in 2011 50,000 was 52,000 bopd 40,000 71,350 65,333 66,776 65,330 30,000 60,514 54,119 43,946 44,776 42,806 42,798 20,000 36,199 25,414 10,000 0 Jan Feb Mar Apr May Jun J
Slide 7: Higher production and increasing reserves
Higher production and increasing reserves WI Production (bopd) 2P reserves (mmboe) 45,000 450 40,000 400 RRR=11.0 52 35,000 350 30,000 300 25,000 250 RRR=7.1 200 354.5 20,000 39,966 15,000 150 21,511 100 10,000 194 17,381 149 5,000 50 0 0 2009 2010 2011 2009 2010 2011* *) DNO (354.5) and RAK MENA (5
Slide 8: Low cost position maintained
Low cost position maintained Lifting cost per barrel (USD) Finding and development cost per barrel (USD) 14.0 12.0 12.0 10.0 10.0 8.0 8.0 13.0 6.0 6.0 10.6 9.5 4.0 4.0 8.1 5.0 2.0 2.0 1.4 0.0 0.0 2009 2010 2011 2007-2009 2008-2010 2009-2011 Three years rolling average. Reserves as in CPR per 30 June
Slide 9: Portfolio evenly spread along value curve
Portfolio evenly spread along value curve DNO’s portfolio is diversified across different parts of the field life cycle, delivering optionality and providing unique access to MENA production, development and exploration. Yemen Block 43 Block 8 (Oman) Yemen Block 32 Yemen Block 53 Tawke (KUR) Saleh/R
Slide 10: Extensive multi-region drilling program for 2012
Extensive multi-region drilling program for 2012 Country JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Tawke-16 Tawke-14 Tawke-18 Tawke-19 Kurdistan Peshkabir-1 Tawke deep Benenan-1 Bastora-2 Tasour-27 Nabrajah-21 Yaalen-4 Expl. bl. 43 Yemen Bayoot-8 (sidetrack) Bayoot-11 Bayoot-SW-2 (sidetrack) H
Slide 11: Short term priorities
Short term priorities Kurdistan • Increase production capacity to 100,000 bopd at the Tawke field • Commence field development of Benenan/Bastora • Step-up drilling activities Yemen • Maintain stable production and cash flow • Prepare for re-commencement of the drilling activities • Commence the Yaa
Slide 12: www.dno.no
sibility Assets in Kurdistan Assets in Tunisia Assets in Yemen Assets in Oman Production reports Assets in UAE
Slide 13: Integration on track
DNO-RAK merger completed 10 January 2012 Integration on track CEO Helge Eide General Counsel CFO & Board Secretary Haakon Sandborg Bjørn Dale Director Corporate Communications and Public Director Affairs Human Resources Tom Bratlie Anita Hjerkinn Aarnæs Director Group Exploration Director COO & Subs
Slide 14: DNO's operations in Kurdistan
DNO´s operations in Kurdistan Nicholas Atencio Country Manager Kurdistan
Slide 15: The Kurdistan Region of Iraq
The Kurdistan Region of Iraq
Slide 16: Tawke PSC
Tawke PSC Tawke PSC, license partners: 20% DNO 25% 55% KRG Genel
Slide 17: Tawke-16
Tawke-16 Green: Current P50 model. Red: Reservoir volume indicated on reprocessed seismic and interference testing • T-16 objective is to prove up additional volumes within the northern flank • Estimated OIP for the northern flank is around 500 mill barrels • Well spudded on 29 December 2011 • Curre
Slide 18: Tawke deep prospect
Tawke deep prospect • Well planned to be drilled 2H 2012 Q4 and full year 2011 presentation 18
Slide 19: Peshkabir prospect
Peshkabir prospect • Well spudded on 4 September 2011 • Oil shows observed during drilling • Drilling ahead Q4 and full year 2011 presentation 19
Slide 20: Next step at the Summail discovery in the Dohuk license is 3D seismic
Next step at the Summail discovery in the Dohuk license is 3D seismic 11 million scf/d of gas produced during testing Heavy oil confirmed from 3 tests • Well discovery report submitted to the Ministry of Natural Resources • 3D seismic planned for March-August 2012 Dohuk PSC, license partners: 40% 40
Slide 21: Developing the Benenan/Bastora field in the Erbil license
Developing the Benenan/Bastora field in the Erbil license Erbil PSC, license partners: 40% 40% DNO KRG 20% Gas Plus Erbil Q4 and full year 2011 presentation 21
Slide 22: Drilling in Oman Block 8
46 Drilling in Oman Block 8
Slide 23: West Bukha – 5 well
West Bukha – 5 well • Drilling with the Noble jack up rig Roy Rhodes • Spudded on 2 December 2011 • Will be drilled into the Thamama formation with a MD of 4,900m • Current status: Drilling 12 1/2’’ hole to approx. 4,000 meters, running 9 5/8’’ casing Q4 and full year 2011 presentation 23
Slide 24: Q4 and full year 2011 financials
Q4 and full year 2011 financials Haakon Sandborg CFO
Slide 25: Financial summary 2011
Financial summary 2011 Clear and compelling strategy Annual key financials • A significant E&P player in the MENA region • Repositioned asset portfolio to further Revenues Netback Operating Profit strengthen growth potential 1800 Record financial performance • Strong increase in earnings and cash fl
Slide 26: Key figures
Key figures NOK mill Q4 2011 Q4 2010 Full year 2011 Full year 2010 Operating revenues 904.6 302.0 2,070.2 1,251.8 Operating profit 210.8 86.8 657.7 156.8 EBITDA 662.8 159.3 1,418.6 473.7 Netback 649.3 139.9 1,321.6 379.6 Q4 and full year 2011 presentation 26
Slide 27: Condensed income statement
Condensed income statement NOK mill Q4 2011 Q3 2011 Q4 2010 Full year Full year 2011 2010 Sales 904.6 152.4 302.0 2,070.2 1,251.8 Cost of goods sold -624.8 -100.1 -144.7 -1,165.7 -618.7 Gross profit 279.8 52.3 157.3 904.5 633.1 Dry well cost expensed 2.8 0.9 -9.2 -49.1 -17.2 Seismic and other explor
Slide 28: Cash flow statement
Cash flow statement NOK mill Q4 2011 Q3 2011 Q4 2010 Full year Full year 2011 2010 Profit/(loss) before income tax 191.5 318.6 -40.0 728.2 -206.2 Non cash items and changes in 251.7 107.4 222.4 474.1 933.4 working capital Taxes and interest paid -40.0 -62.3 -45.1 -216.1 -202.3 Net cash from operatin
Slide 29: Strong financial position
Strong financial position Cash Net Interest-Bearing Debt 2009 2010 2011 2009 2010 2011 2,000 200 109 1,800 1,752 0 1,600 -200 1,385 1,400 -400 1,200 -430 NOK million NOK million -600 1,000 -800 800 -1,000 600 -1,200 400 303 200 -1,400 -1,482 0 -1,600 Q4 and full year 2011 presentation 29
Slide 30: Exploration activity
Exploration activity 50 Expensed exploration NOK 103 million in 2011 45 Mozambique: NOK 37 million • Dry well Inhaminga High-1 40 • Seismic, other 35 Kurdistan: NOK 27 million • G&G work , other NOK million 30 Other Yemen: NOK 32 million 25 Africa • Dry wells, other Kurdistan 20 Other areas: NOK 7 m
Slide 31: Capital expenditure
Capital expenditure Capex NOK 422 million in 2011 Yemen Kurdistan 180 Yemen: NOK 78 million 160 • Field development 140 • Bayoot infill wells 120 NOK million Kurdistan: NOK 338 million 100 • Tawke PSC: Field development, T-13, T-16, Peskahbir-1 80 • Erbil PSC: Field development, Bastora-1 • Dohuk PS
Slide 32: Investments funded by cash flow
Investments funded by cash flow Investment and cash flow Cash flow coverage* Capex + Exploration Netback bef Exploration 300 1600 250 1400 1200 200 1000 NOK million Percent 150 800 600 100 400 50 200 0 0 2009 2010 2011 2009 2010 2011 * Netback before exploration/(capex + exploration) Q4 and full yea
Slide 33: Significant step up in 2012 investments
Significant step up in 2012 investments 1400 Total investment per activity Development CAPEX NOK 1 billion Development • Extensive drilling program 1200 Exploration • Increase production capacity at Tawke to 100,000 bopd • Development of Benenan and Bastora fields • Development of the Yaalen field 1
Slide 34: Shareholder structure post RAK merger
Shareholder structure post RAK merger Geographic distribution* Norway • 14,034 Norwegian shareholders holding 35% 100% Rest of World 9% International 90% 4% Sweden 4% • 557 international shareholders holding 65% 6% Luxembourg 80% • RAK Petroleum 42.8% UK 70% 20 largest shareholders • Holding 60.2% 6
Slide 35: Outlook 2012
Outlook 2012 • Production continues to increase into 2012 • Building additional production capacity through facility upgrades and new wells • Significant reserves upside from high impact exploration and appraisal drilling • Continue to grow DNO into a significantly larger E&P player in the MENA regi
Slide 36: Thank you for attending
Thank you for attending FIRST QUARTER 2012: 9 MAY 2012
Slide 37: Disclaimer
Disclaimer This Presentation 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 Presentation are based on current expectations, estimates and projections abo