Horizon Oil Limited · ASX:HZN
Horizon Oil — FY2017 Earnings Presentation
15 slides from Horizon Oil's earnings presentation, Aug 29, 2017
Slide 1: 2017 Annual Results Presentation
For personal use only HORIZON OIL LIMITED / ABN 51 009 799 455 2017 Annual Results Presentation Beibu Gulf fields, China Papua New Guinea 29 August 2017 Maari field, New Zealand
Slide 2: Disclaimer
Disclaimer For personal use only Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other trend projection
Slide 3: Financial year 2017 results - highlights
Financial year 2017 results ‐ highlights For personal use only • Oil sales volumes 3% higher than FY 2016 at 1,421,940 barrels, generating revenue of US$68.5 million • Average cash operating cost down 21% to US$11 per barrel of oil sold, driven by further cost savings in response to lower oil prices
Slide 4: Operational results
Operational results For personal use only Lost Time Injury Frequency Rate (LTIFR) of 0.0, Total Reportable Injury Frequency Rate (TRIFR) of HSSE 0.0 at 30 June 2017 over a 12 month rolling period (~85,000 manhours). No significant loss of containment incidents (<1 barrel of oil equivalent). Continue
Slide 5: Financial overview
Financial overview For personal use only FY 2017 FY 2016 ∆ ∆ (%) (US$ million) • Strong sales volumes maintained Sales volume (mmbbl) 1.42 1.38 0.05 3% • Benefit from cost recovery oil to be Revenue 68.5 76.0 (7.5) (10%) derived over next 4 years is an escalating US dollar amount and Sales revenue 6
Slide 6: FY 2017 free cash flow breakeven of US$32/bbl provides capacity for debt repayment
FY 2017 free cash flow (FCF) breakeven of US$32/bbl provides capacity for debt repayment For personal use only • Continued focus on cost reduction and low opex in China drives down the breakeven price • Low breakeven price provides stability in low oil price environment and capacity for debt repayme
Slide 7: Continued debt reduction in low oil price environment
Continued debt reduction in low oil price environment For personal use only • Horizon Oil’s proven, developed and producing Beibu Gulf and Maari fields provide substantial debt security in a challenging environment for small and mid‐ cap companies to access debt • The Company refinanced the outstand
Slide 8: Block 22/12 production and cost recovery is driving cash generation
Block 22/12 production and cost recovery is driving cash generation For personal use only • Horizon Oil’s Block 22/12 production entitlement increased from 26.95% to ~37% of production, following the commencement of its entitlement to preferential cost recovery in 2016 • The company’s unrecovered co
Slide 9: Five year performance (1)
Five year performance (1) For personal use only Full Year Results Presentation 29‐Aug‐17 9
Slide 10: Five year performance (2)
Five year performance (2) For personal use only Full Year Results Presentation 29‐Aug‐17 10
Slide 11: Outlook for financial year 2018
Outlook for financial year 2018 For personal use only Financial • Operating cash flows to continue at current levels as a result of continuing steady production at Maari and Beibu Gulf fields, including cost recovery production entitlement and ongoing control of operating costs • Continued focus on
Slide 12: Western LNG project, PNG - key points
Western LNG project, PNG – key points For personal use only • Preliminary project economics are attractive, with 20+ year plateau production for 2C gas resource and economics strengthened by significant condensate production. • 520 km gas and condensate pipelines will connect western foreland fields
Slide 13: Horizon Oil snapshot
Horizon Oil (ASX:HZN) snapshot For personal use only • Sydney‐based public company listed on Australian Securities Exchange (ASX) • Portfolio of exploration, development and producing assets in Asia‐Pacific region, with net production of ~4,000 bopd: ― 26.95% interest in Beibu Gulf fields offshore C
Slide 14: Corporate summary
Corporate summary For personal use only Shareholders Share Price vs Brent Crude vs ASX 200 Energy Index ‐ Rebased Board of Directors John Humphrey Chairman Brent Emmett Chief Executive Officer / Managing Director Gerrit de Nys Director Andrew Stock Director Sandra Birkensleigh Director Greg Bittar D
Slide 15: For more information please contact
For personal use only For more information please contact: Horizon Oil Limited T: +61 2 9332 5000 Level 6, 134 William St Brent Emmett Chief Executive Officer F: +61 2 9332 5050 Woolloomooloo NSW 2011 E: info@horizonoil.com.au horizonoil.com.au Media enquiries Gavan Collery M: +61 419 372 210 Resour