Dana Gas Pjsc · ADX:DANA
Dana Gas Pjsc — FY2023 Earnings Presentation
27 slides from Dana Gas Pjsc's earnings presentation, March 2024
Slide 1: FY 2023 – Financial Results
FY 2023 – FINANCIAL RESULTS March 2024 CLEAN ENERGY FOR THE FUTURE
Slide 2: Contents
CONTENTS I. Overview and Recent Highlights II. Operations III. Financial Update IV. Summary 2
Slide 3: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo
Slide 4: Overview & Recent Highlights
OVERVIEW & RECENT HIGHLIGHTS 4
Slide 5: Snapshot – FY 2023
SNAPSHOT – FY 2023 OPERATIONS FINANCIALS ▪ Group’s existing operations continued uninterrupted. Gas production ▪ FY 2023 Net Profit of $160mm – 12% decline due to lower realized increased to record levels in November (520 MMSCF) prices and additional discount on local condensate sales in the KRI ▪ F
Slide 6: Dana Gas: Key Company Facts
DANA GAS: KEY COMPANY FACTS MARKET DAILY GROSS REVENUE: EBITDA DIVIDENDS: TOTAL EMPLOYEES CAPITALIZATION: PRODUCTION: US$423MM (FY23) (FY 2023): (EGYPT & KRI): 58.7 KBOE (FY23) PAID US$ 1.36 BILLION NET PROFIT: US$ 257 MILLION US$ 734MM 658 EMPLOYEES A S OF 2P RESERVES: US$160MM (FY23) SINCE 2017 08
Slide 7: Dana Gas: History & Story
DANA GAS: HISTORY & STORY First Gas KRI KRG Declares Dispute NIOC NIOC 1st Record KRI Contract & NIOC Sukuk Settlement Sukuk Dana Gas Damages production output Arbitration Refinancing with RWE Refinancing IPO Award of 520 MMscf/d 2005 2007 2009 2011 2013 2016 2017 2018 2019 2021 2022 2023 Dana Gas S
Slide 8: Dana Gas: Key Assets
DANA GAS: KEY ASSETS ASSET / COUNTRY UAE GAS PROJECT (UAE) DANA GAS (EGYPT) PEARL PETROLEUM (KRI) ▪ Midstream ▪ Upstream ▪ Upstream ASSET TYPE ▪ Downstream ▪ Midstream ▪ Project to import, process and market ▪ Operates 14 development leases within 4 ▪ 35% interest in Pearl. Khor Mor field Iranian ga
Slide 9: Operations
© jc d_ila DANAGAS OPERATIONS
Slide 10: UAE Gas Project: Founding of Dana Gas
UAE GAS PROJECT : FOUNDING OF DANA GAS FOUNDING PURPOSE INFRASTRUCTURE DANA GAS IPO Founding purpose of CNGCL was purchase Infrastructure required includes UGTC riser A Prospectus for the IPO of Dana Gas PJSC of 600,000 MMscf/d of Iranian gas, through platform and pipeline to bring gas to the was re
Slide 11: UAE Gas Project: Arbitration Update
UAE GAS PROJECT ARBITRATION UPDATE ▪ The UAE Gas Project involves the purchase of 600 MMscf/d imported gas sourced from the National Iranian Oil Company (NIOC) for transportation, processing, and sale in the UAE. ▪ Dana Gas owns project infrastructure (Gas transmission and Processing) and 35% of the
Slide 12: KRI: World Class Assets & Low-Cost Production
KRI: WORLD CLASS ASSETS, & LOW-COST PRODUCTION PEARL PETROLEUM COMPANY LTD ▪ Holding (%): Dana Gas 35%, Crescent 35%, OMW, MOL, RWE 10% ▪ Pearl has 100% working interest in the PDA covering Khor Mor and Chemchemal fields and Blocks 19 and 20 ▪ Khor Mor is a major gas-condensate field providing gas f
Slide 13: KRI: Energising the Country
KRI: ENERGISING THE COUNTRY OPERATIONS ▪ Production operations continued as normal, and the Company continues to play an important role in enabling regional power generation despite challenging conditions ▪ Produced 36,900 boepd (Net) in 2023 (164 MMscf of gas; 5,345 bbl/d of condensate and 360 MTPD
Slide 14: Credan Operates Two of the Largest Gas Fields in MENA
CREDAN* OPERATES TWO OF THE LARGEST GAS FIELDS IN MENA LARGE GAS DEVELOPMENTS IN MENA KURDISTAN MENA 120 100 80 GIIP (tcf) 60 40 20 0 Khor Mor Bina Bawi Khazzan** Zohr Leviathan Shah Tuna Tamar Calypso Glaucus + Chemchemal + Miran Notes: *Dana Gas and Crescent Petroleum | * *Recoverable volume expec
Slide 15: Egypt: Operations Overview
EGYPT: OPERATIONS OVERVIEW OPERATIONS ▪ Produced 21,800 boepd during full year 2023 (106 MMscf of gas; 2,182 bbl/d of condensate and 173 MTPD of LPG); 16% drop compared to full year 2022 as a result of natural field declines ▪ The decline is lower than the 20-30% production decrease that is expected
Slide 16: Production (boepd)
PRODUCTION (BOEPD) AVERAGE PRODUCTION FY 2022 VS FY 2023 (KBOE/D) AVERAGE PRODUCTION Q4 2022 VS Q4 2023 (KBOE/D) 60.2 58.6 55.7 58.7 7.86 7.52 7.6 7.1 34.2 36.9 34.0 36.1 26.0 24.6 5.1 5.34 21.8 5.2 2.76 45.5 45.0 5.0 19.5 2.18 2.6 44.3 42.4 24.7 20.8 27.3 1.9 17.7 24.5 26.5 19.8 15.8 KRI Egypt Grou
Slide 17: Realized Prices (USD/boe)
REALIZED PRICES ( USD/BOE) AVERAGE REALIZED PRICE - CONDENSATE (USD/BBL) AVERAGE REALIZED PRICE - LPG (USD/BOE) Q4 2022 Q4 2023 FY 2022 FY 2023 Q4 2022 Q4 2023 FY 2022 FY 2023 $101 $101 $93 $89 $89 $84 $83 $81 $84 $83 $79 $76 $72 $74 $71 $65 $57 $51 $52 $50 $50 $45 $42 $41 $34 $36 $35 $35 $27 $28 $2
Slide 18: Financial Update
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Slide 19: Revenue Highlights
REVENUE HIGHLIGHTS YEARLY REVENUE BREAKDOWN ($MM) QUARTERLY REVENUE BREAKDOWN ($MM) 525 113 100 419 * 96 * 21 81 20 255 270 225 60 218 201 140 53 45 49 47 31 45 55 10 44 37 11 12 8 92 20 133 80 60 15 25 16 200 198 47 45 123 94 104 30 21 24 77 17 KRI Egypt Total KRI Egypt Total KRI Egypt Total KRI Eg
Slide 20: Profit Highlights
PROFIT HIGHLIGHTS GROSS PROFIT ($MM) NET PROFIT ($MM) 350 332 2022 2023 200 182 2022 2023 300 160 249 257 150 250 200 190 100 150 91 100 50 34 47 56 21 50 37 0 0 FY - Gross Profit Q4 - Gross profit FY-EBITDA Q4 - EBITDA FY Q4 20
Slide 21: G&A / OPEX Highlights
G&A / OPEX HIGHLIGHTS G&A / OPEX ($MM) G&A OPEX G&A/boe ($/boe) Opex/boe ($/boe) 60 60 55 55 57 53 ▪ Company OPEX and G&A costs remain 3.00 extremely competitive on an industry wide 2.65 2.59 2.28 2.38 2.47 basis 40 ▪ OPEX and G&A down 7% and 8% 2.00 respectively; reflecting the Company’s success in
Slide 22: CAPEX Highlights
CAPEX HIGHLIGHTS CAPEX ($MM) ▪ Total $146mm vs $138mm ▪ $22mm in Egypt and $124mm in the KRI 138 146 ▪ Limited CAPEX in Egypt amid finalisation of 126 concession consolidation ▪ Plans to invest $80-$100 mm in Egypt in the 56 coming two years 2020 2021 2022 2023 22
Slide 23: Cash Flow, Liquidity & Receivables
CASH FLOW, LIQUIDITY & RECEIVABLES DEBT AND CASH BALANCE ($MM) 800 723 ▪ $131mm cash balance vs. $151mm FY2022; 700 ▪ $114mm of cash balance held at Pearl Petroleum 600 608 ▪ Cash Dividend of $86mm (4.5 fils per share) 500 456 414 paid in May 2023 as final dividend for 2022 425 400 407 300 252 199 2
Slide 24: Cash Flow, Liquidity & Receivables
CASH FLOW, LIQUIDITY & RECEIVABLES BILLINGS AND COLLECTIONS ($MM) ▪ Collected $238mm in FY 2023 ▪ $180mm, Company’s share of Pearl’s collections in the KRI (82% collection realization) ▪ Company’s share of KRI trade receivables stands at $103mm ▪ Company didn’t receive any dividends from Pearl in 20
Slide 25: Summary
© jc d_ila DANAGAS SUMMARY
Slide 26: Summary
SUMMARY ▪ RESILIENT OPERATIONAL AND FINANCIAL RESULTS DESPITE DIFFICULT MACRO ENVIRONMENT ➢ $160mm net profit highlights success in increasing production to record levels in KRI; supported by a 7% reduction in operating costs as bottom-line declined amid drop in energy prices ➢ New payment mechanism
Slide 27: Reach Us
REACH US: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : mohammed.mubaideen@danagas.com Direct : +971 6 519 4401