Dana Gas Pjsc · ADX:DANA
Dana Gas Pjsc — Dana Gas — Q2 2016 Earnings Presentation
32 slides from Dana Gas Pjsc's earnings presentation, Aug 11, 2016
Slide 1: Clean Energy For the Future
Clean Energy For the Future Dana Gas Investors Presentation 2Q 2016 Financial Results 11 August 2016 www.danagas.com 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements Forward-looking statements are based on certain which may be identified by their use of words like assumptions and expectations of future events. The “plans,” “expects,” “will,” “anticipates,” “believes,” Company, its su
Slide 3: Presentation Outline
Presentation Outline Performance Highlights Finance Update Country Performance Egypt Kurdistan Region of Iraq UAE - Zora Gas Project Summary www.danagas.com 3
Slide 4: Performance Highlights
Performance Highlights Dr Patrick Allman-Ward Chief Executive Officer www.danagas.com 4
Slide 5: H1 2016 - Headlines
H1 2016 - Headlines Strong production – 66,650 barrels of oil equivalent First half net profit of $13 million $100 million in cash collections; $344 million in the bank Mocha-1 spudded in May; prospect with potential multi-TCF reservoir Kurdistan reserves independently certified at 990m boe NIOC arb
Slide 6: Financial Performance
Financial Performance Chris Hearne Chief Financial Officer www.danagas.com 6
Slide 7: Financial Highlights: Q2 2016
Financial Highlights: Q2 2016 Change - $ (In $ million) Q2 – 2016 Q2 – 2015 % Change million Gross Revenue 96 116 (20) (17) Gross Profit 20 37 (17) (46) Net Profit 7 7 - - EBITDA 41 47 (6) (13) Net profit on par with Q2 2015 at $7 million. Revenue decline due to low price environment and readjustmen
Slide 8: Financial Highlights: H1 2016
Financial Highlights: H1 2016 Change - (In $ million) 1H – 2016 1H – 2015 % Change $million Gross Revenue 178 231 (53) (23) Gross Profit 42 74 (32) (43) Net Profit 13 19 (6) (32) EBITDA 88 101 (13) (13) Marginal profit decrease on low price environment and a decline in production Offset by new produ
Slide 9: Profit After Tax Bridge – Q2 2016 (USD$ million)
Profit After Tax Bridge – Q2 2016 (USD$ million) Zora Gas Field adds $8 million as disposal of 5% interest in PPCL results in a revenue loss. Decrease in operating cost and G&A due to cost optimizations across the Group Increase in investment and finance income due to interest charged on overdue rec
Slide 10: Profit After Tax Bridge – H1 2016 (USD$ million)
Profit After Tax Bridge – H1 2016 (USD$ million) The decline in revenue due to production was offset by start of production from Zora field in UAE Royalty & tax declined by 16% - linked to production and profitability in Egypt Decrease in operating cost and G&A due to cost optimization across the Gr
Slide 11: Production Performance (BOEPD)
Production Performance (BOEPD) Rounded to nearest hundred Q2 2016 Vs Q2 2015 2016 2015 1H 2016 Vs 1H 2015 Includes 750 boepd Includes Gas Includes 750 boepd Includes Gas (2Q2015 – 650 boepd) Production of 18,300 (1H 2015 – 600 boepd) Production of relating to DG share of boepd (2Q 2015 – relating to
Slide 12: Average Realized Prices
Average Realized Prices Q2 2016 Vs Q2 2015 1H 2016 Vs 1H 2015 2016 2015 www.danagas.com 12
Slide 13: Trade Receivables
Trade Receivables (all figures in USD$ million) Dana Gas Egypt KRI Pearl Petroleum (35%) Receivable - $230 million Receivable - $246 million Receivable - $221 million Receivable - $726 million Receivable - $793 million Receivable - $727 million 140 111% 160 30% 125 142 Billing Collection Billing Col
Slide 14: Capital Expenditure (all figures in USD$ million)
Capital Expenditure (all figures in USD$ million) DGE U.A.E. 1H 2016 1H 2015 1H 2016 1H 2015 Increase in GPEA programme UAE completed construction and commissioning activities in Zora Reducing spend as fewer major capital projects www.danagas.com 14
Slide 15: Liquidity & Liability
Liquidity & Liability Cash & bank balance Outstanding Sukuk 500 800 470 750 700 400 344 600 350 350 300 400 200 400 350 100 200 30 June 2016 31 December 2015 30 June 2016 31 December 2015 9% Ordinary Sukuk 7% Exchangeable Sukuk Cash and bank balance - $344 million Sukuks maturing on 31 October 2017.
Slide 16: Country Performance – Egypt, KRI and UAE
Country Performance – Egypt, KRI and UAE Iman Hill Technical Director & GM UAE and Egypt www.danagas.com 16
Slide 17: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations El Wastani Development Leases • Onshore acreage consisting of 14 Development Leases in the prolific Nile Delta region SWEW-1 Production • Q2 2016 average is 36.6 kboe/d versus Q2 2015 of 33.0 kboe/d. Balsam-5 Balsam field production has been largely responsible for the W
Slide 18: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations El Wastani Projects • 4 wells (South Faraskur-5, South Faraskur-6, SAEN-7 and West Manzala-3) have been tied into the existing gathering system. • The 17 km 12 inch trunk line from Balsam to El Wastani plant was completed and put into production on May 25, 3 months ahead
Slide 19: Egypt: Balsam Western Horst Update: Balsam-5
Egypt: Balsam Western Horst Update: Balsam-5 • Following the success of Balsam-3 well, Balsam- 5 has been drilled into the same accumulation as a production acceleration well. • The well has proven a gas water contact which was previously unknown. It encountered 30m of vertical pay and flowed 11 mms
Slide 20: Egypt: South West EL Wastani Discovery
Egypt: South West EL Wastani Discovery SWEW-1 • South West El Wastani discovery well has proved up the play on this previously undrilled downthrown terrace • This is a separate hydrocarbon filled structure from El Wastani Field increasing the resource base in this development lease with 2P estimated
Slide 21: Egypt: West El Manzala-3 Discovery
Egypt: West El Manzala-3 Discovery WEM-3 • WEM-3 discovery well has proved up the play in the Abu Madi Formation. • This separate hydrocarbon filled structure increases the resource base in this development lease by an incremental 13.7 bcf GIIP. www.danagas.com 21
Slide 22: Egypt: Block 1 - North El Salheya Exploration
Egypt: Block 1 - North El Salheya Exploration Block-1 (100% WI) • Targets the prolific Abu Madi and Kafr El Sheikh plays. Activities • Reprocessing of 800 km2 3D seismic Western Geco completed and loaded to workstation. • Reprocessing of 2D seismic data has started. • Plan to drill 4 exploration wel
Slide 23: Egypt: Block 3 - El Matarya Exploration
Egypt: Block 3 - El Matarya Exploration Block-3 (Dana Gas 50% WI) • BP is operating Block-3 as 50/50 partner and is targeting the deeper, high potential Oligocene play which is proven in the offshore Nile Delta. Mocha-1 • Mocha-1 spudded on 6th of May and is expected to reach target depth in Novembe
Slide 24: Egypt: Block 6 – North El Arish Offshore Update
Egypt: Block 6 – North El Arish Offshore Update Block-6 (100% WI) • 1782 km2 of full fold 3D seismic acquired. • 3D seismic processing completed in January 2016. • Substantial and material prospect inventory emerging in the Oligo-Miocene section. • Several prospects show significant DHIs. • Farm-out
Slide 25: Egypt Summary
Egypt Summary The Company collected USD 49 million in 1H 2016 realizing 84% of the period’s revenue. Period end total receivables are $ 230 million compared to $ 221 million at 31 December 2015. The Company continued to deliver the Gas Production Enhancement Project with 17 wells successfully dr
Slide 26: Kurdistan Operations Q2 2016
Kurdistan Operations Q2 2016 Iman Hill Technical Director and GM UAE & Egypt www.danagas.com 26
Slide 27: Operations in Kurdistan Region of Iraq
Operations in Kurdistan Region of Iraq • DG share of production averaged 26,100 boepd during Q2 2016. Gross production details are as follows: o 313 ( Q2 2015: 316) MMscfd of natural gas o 13,472 (Q2 2015: 13,830) bbl/d of condensate o 757 (Q2 2015: 724) MT/d LPG • Operation have remained steady thr
Slide 28: UAE Operations - Zora Gas Project Update
UAE Operations - Zora Gas Project Update Iman Hill Technical Director and GM UAE & Egypt www.danagas.com 28
Slide 29: Zora Operations progress
Zora Operations progress The Zora gas plant has been in continuous production since February 2016. Current production is approximately 16,000 mmbtu gas and 200 bbl/day of condensate. The plant operation is limited by the ability to handle the increased water production (approximately 600 bbl/d
Slide 30: Summary
Summary Dr Patrick Allman-Ward Chief Executive Officer www.danagas.com 30
Slide 31: Summary
Summary ‘Steady progress’ in terms of production, operations, cost control and financial stability Increase production: Balsam Field in Egypt the core driver Profitable even under the current prevailing low price Finances under control, significant cash in hand Started proving up growth potential in
Slide 32: Reach us: Dana Gas
Reach us: Dana Gas P. O. Box 2011, Sharjah, UAE www.danagas.com Direct : +971 6 519 4444 Fax : +971 6 556 6522 www.danagas.com