Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — H1 2017 Earnings Presentation
17 slides from Gulf Keystone Petroleum's earnings presentation, Sep 19, 2017
Slide 1: Half Year 2017 Results
Gulf Keystone Petroleum 19 September, 2017 Half Year 2017 Results
Slide 2: Disclaimer
2 Disclaimer These Presentation Materials are for information purposes only and must not be used or relied upon for the purpose of making any investment decision or engaging in any investment activity and should not be construed as, an offer for sale or subscription of, or solicitation of any offer
Slide 3: H1 2017 Highlights: Jón Ferrier, CEO
H1 2017 Highlights: Jón Ferrier, CEO
Slide 4: Half Year 2017 Highlights
4 Half Year 2017 Highlights Safe and reliable operations – no lost time incidents Achieved average daily production of 36,664 bopd (+11% vs. H1 2016) Ready to invest subject to achieving contractual and commercial clarity – ongoing constructive dialogue with the MNR Received $60m net from th
Slide 5: Operational Review: Stuart Catterall, COO
Operational Review: Stuart Catterall, COO
Slide 6: Operational Highlights
6 Operational Highlights No lost time incidents – with plant uptime over 99% Average H1 daily gross production of 36,664 bopd On track to meet 32,000-38,000 bopd FY guidance (c.35,350 bopd so far in Q3) Cumulative production from Shaikan exceeds 40 MMstb – allowing for an enhanced understand
Slide 7: Shaikan production Investment: Staged, Risk-Managed, Modular Approach
7 Staged, Risk-Managed, Modular Approach Focus on value Stage 1 - Maintain production level in line with current production capacity at 40,000 bopd Stage 2 - Grow to 55,000 bopd in the near-term Stage 3 – Full-field development plan in the mid- to long-term Continuous optimisation of these progr
Slide 8: Financial Review: Sami Zouari, CFO
Financial Review: Sami Zouari, CFO
Slide 9: Financial Highlights
9 Financial Highlights Healthy financial position Free cash flow positive through H1 2017 Five payments from the MNR of $15m gross ($12m net to GKP) during H1 $118.8m in cash and cash equivalents as at 30 June 2017 ($133.8m as at 18 September 2017) $100.0m Reinstated Notes Coupon payment
Slide 10: Revenue and EBITDA
10 Revenue and EBITDA $78.3m revenue (H1 2016: $102.1m) $72.0m of revenue accounted for on a cash assured basis (H1 2016: $52.9m) $6.3m of payables to the MNR offset against revenue arrears (H1 2016: $49.2m) Estimated realised sales price: c.$32/bbl(1) Brent c.$52/bbl less c.$20/bbl for Sh
Slide 11: Free Cash Flow Positive
11 Free Cash Flow Positive H1 2017 Cash Flow ($m) $140 +0.3 $120 (4.4) +30.1 $100 $80 $60 118.8 92.9 $40 $20 $0 Opening Cash Operating Investing FX Closing Cash (31-Dec-2016) Activities Activities (30-Jun-2017)
Slide 12: Conclusion
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Slide 13: Outlook
13 Outlook 1 Maintaining safe, reliable operations 2 Meeting production guidance for 2017 3 Achieving commercial clarity (incl. PSC) 4 Significant organic growth opportunity in Kurdistan 0 5 Continuing to prudently manage cost base
Slide 14: Appendices
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Slide 15: Shaikan Arrears
15 Shaikan Arrears Net position to GKP as at: 31 December 30 June ($m) 2016 2017 Revenue Arrears (unrecognised) $25m $33m MNR Government Participation Option $71m $76m (back costs) Manageable level of arrears Prudent accounting approach (off balance sheet) All values are subject to audit and r
Slide 16: Shaikan Cost Recovery
16 Shaikan Cost Recovery R-Factor: 0.5, leading to a maximum share of profit oil to Contractors (30%) 30 June Recovery of Shaikan Cost Petroleum Shaikan Cost Pool ($m) 2017 30 June 2017 ($m) Gross Costs(1) $1,050m 349 Recoverable Costs Pool $1,002m o/w Recovered Costs Estimate $349m 653 48 Availab
Slide 17: Thank you
17 Thank you More resources are available at: www.gulfkeystone.com
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