Dana Gas PJSC · ADX:DANA
Dana Gas PJSC — FY2013 Earnings Presentation
28 slides from Dana Gas PJSC's earnings presentation, Feb 3, 2014
Slide 1: Clean Energy For the MENA Region's Tomorrow
Clean Energy For the MENA Region’s Tomorrow Dana Gas Analyst Presentation 2013 Preliminary Results 03 February 2014 www.danagas.com 1
Slide 2: Forward Looking Statement
Forward Looking Statement 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 a
Slide 3: Presentation Outline
Presentation Outline The MENA Region and its relevance Dana Gas: Proven Track Record and 2013 Performance Financial Performance Country Operations Summary www.danagas.com 3
Slide 4: Natural Gas fast becoming the Fuel of Choice
Natural Gas fast becoming the Fuel of Choice for the growing energy demand in MENA and else where Growing economies fueling demand for Global Population Trends energy (Source: UN) 70% less CO2 than coal in power generation (old plants) Small physical footprint versus coal, nuclear or renewable
Slide 5: Fast growing domestic demand in MENA
Fast growing domestic demand in MENA MENA Primary Energy Demand MENA Country Primary Energy Mixes3 (Source: EIA) (Source: BP Statistical Review 2013 & IEA Data) CAGR of gas consumption 7% Percentages represent gas consumption as 35% share of total primary energy consumption 27% 24% 41% 46% 50% CAGR
Slide 6: Dana Gas: 2013 Performance Highlights
Dana Gas: 2013 Performance Highlights www.danagas.com 6
Slide 7: Proven track record based on top class exploration, accelerated development and inorganic opportunities
Proven track record based on top class exploration, accelerated development and inorganic opportunities Value Delivery Model Drill bits success – Nile delta exploration success – Reserve growth Exploration √ Nile Delta Exploration 2007-2013 M&A (48 exploratory wells with – Egypt entry: acquisiti
Slide 8: 2013: Several Achievements Despite Several Challenges
2013: Several Achievements Despite Several Challenges Higher average production of 64,700 BOEPD vis-à-vis 2012’s average of 59,800 BOEPD - Egypt production at 37,100 BOEPD higher by 14% on a Y-o-Y basis, while KRI production remained flat at 27,600 BOEPD Higher annual production drives revenues
Slide 9: Dana Gas: 2013 Financial Performance
Dana Gas: 2013 Financial Performance www.danagas.com 9
Slide 10: Financial Highlights: Q4 2013 vs Q4 2012
Financial Highlights: Q4 2013 vs Q4 2012 Percentage (In $ million) Q4 – 2013 Q4 – 2012 Change Gross Revenue 186 151 23 Net Profit 35 31 17 Basic EPS (AED fils) 1.9 1.7 12 Higher production in Egypt (increase of 22%) and resumption of LPG sales in Kurdistan, leading to higher revenue in Q4 2013 N
Slide 11: 2013 Y-o-Y Financial Performance
2013 Y-o-Y Financial Performance Percentage (In $ million) 2013 2012 Change Gross Revenue 652 633 3 Net Profit 156 165 (5) Basic EPS (AED fils) 8.6 9.1 (5) Gross revenue higher by 3% due to an 8% increase in production Net profit for the year was down by 5% to $ 156 million. Higher production
Slide 12: Significant Increase in Production on a Y-o-Y
Significant Increase in Production on a Y-o-Y Roundedbasis to nearest hundred Q4 2013 Vs Q4 2012 2013 2012 2013 Vs 2012 80,000 70,000 Production (Boepd) 64,700 68,700 59,800 70,000 60,000 59,800 60,000 50,000 50,000 0.3% 40,200 40,000 37,100 40,000 32,300 33,000 28,500 26,800 30,000 27,600 27,500 30
Slide 13: Average Realized Prices
Average Realized Prices Q4 2013 Vs Q4 2012 2013 2012 2013 Vs 2012 120 120 107 109 106 107 108 108 106 106 100 100 83 78 80 75 80 69 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 www.d
Slide 14: Billing & Collection
Billing & Collection (all figures in US$ ‘mm) Dana Gas Egypt Pearl Petroleum (40%) Receivable - $ 274 Receivable - $ 236 Receivable - $ 515 Receivable - $ 354 mm mm mm mm 300 200 78% 95% 30% 55% 258 180 172 171 250 163 230 160 140 134 200 US$ Million 120 US$ Million 150 143 100 80 100 60 69 40 50 20
Slide 15: Dana Gas: Country Business Highlights
Dana Gas: Country Business Highlights www.danagas.com 15
Slide 16: Egypt: Business Environment
Egypt: Business Environment Lack of investments resulting in a declining rate of gas exports whilst the domestic consumption of gas has been increasing Since the recent change of government in mid-2013, Saudi Arabia, Kuwait and the United Arab Emirates have promised Egypt a total of $12 billion
Slide 17: Egypt Oil and Gas Reserves and Production History
Meaningful position in rich hydrocarbon zones in Egypt 20 Egypt Proved Oil and Gas 18 Gas Reserves History Oil and Gas Reserves, Bn boe 16 Egypt has managed c. Dana Gas focus area in Egypt 14 Oil 100% reserves 12 replacement of oil since 10 mid-1980s 8 6 Nile Delta / East 4 Mediterranean 2 0 Western
Slide 18: Consistent Increase in Nile Delta Production
Consistent Increase in Nile Delta Production Q2/Q3 INCREASES Q4 INCREASES SAEN RICH GAS START-UP AND RAMP UP SALMA START-UP PRODUCTION OPTIMIZATION IN PRODUCTION FARASKUR OPTIMIZATION IN SAEN Q1 INCREASES SAEN DRY GAS START-UP EW FIELD 2ND COMPRESSOR ALLIUM START UP www.danagas.com 18
Slide 19: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations New Development Leases: El Wastani Balsam ( new ) Begonia (under EGAS discussion) El Basant (Amendment) Sama (Amendment) Production Rate: 39.8 kboepd ( Q4 2013 Avg) Drilling 2013: 5 wells (1 Expl “ Begonia discovery” Balsam DL El Basant DL +1 App. + 1 Dev + 2
Slide 20: Block 6 – North El Arish Offshore Opportunity
Block 6 – North El Arish Offshore Opportunity Awarded :April 2013 Area : 2980 sq km Expected final governmental ratification Feb 2014 Seismic acquisition in 2014 1 well commitment in phase 1 Prospective acreage New DL adjacent to prolific offshore gas producing fields www.danagas.com 20
Slide 21: Largest Investor and gas producer in Kurdistan Region of Iraq
Largest Investor and gas producer in high-potential Kurdistan Region of Iraq Oil Resource Potential Gas Resource Potential (Source: ANP,MNR,USGS) (source: MNR, ANP, Songas) 70 Resource Potential 60 120 Gas Resource Potential 50 100 (Bln bbl) Mostly 40 80 associated 30 gas (Tcf) 60 20 10 40 0 20 Braz
Slide 22: Operations in Kurdistan Region of Iraq
Operations in Kurdistan Region of Iraq Total net production averaged at 27,600 BOEPD during 2013: 130 MMSCFD of natural gas 5700 bbl/d and 325 bbl/d of condensate and LPG, respectively Completed repairs to LPG loading bay resulting in restoration of the facility with capacity of 900 MT Pro
Slide 23: Dana Gas Kurdistan Assets – Substantial Resources
Dana Gas Kurdistan Assets – Substantial Resources Upside* Pearl Petroleum appointed Gaffney, Cline & Associates Limited (GCA), to provide an estimate of hydrocarbons in-place as at 31st December, 2012 for both the Khor Mor and Chemchemal fields GCA have estimated the gas initially in-place volum
Slide 24: UAE: Zora Project Update
UAE: Zora Project Update Project Management team on board Platform fabrication and loadout contract awarded in November 2013 to ADYARD Work in progress for the following: Contract for platform transportation and installation Contract for offshore & onshore pipeline procurement and installa
Slide 25: Summary
Summary www.danagas.com 25
Slide 26: DG Outperformed All Major Global Benchmarks
DG Outperformed All Major Global Benchmarks www.danagas.com 26
Slide 27: Summary
Summary ● Track record of project delivery and HSSE performance across geographies ● Increase in uplift of LPG in KRI following repairs to the loading bay a positive for future profitability ● Drilling success in 2013 and Block 6 in Egypt and the commencement of the Zora project and provide visibili
Slide 28: Reach Us: Dana Gas PJSC
Reach Us: 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 www.danagas.com