Etablissements Maurel & Prom Sa · EURONEXT:MAU
Etablissements Maurel & Prom Sa — Maurel & Prom — Shareholder Meeting (June 2019)
37 slides from Etablissements Maurel & Prom Sa's shareholder meeting presentation, Jun 13, 2019
Slide 1: Annual General Meeting 13 June 2019
Annual General Meeting 13 June 2019
Slide 2: Speakers
Speakers Aussie B. Gautama Michel Hochard Chairman of the Board of Directors Chief Executive Officer and Member since 10 April 2017 of the Board of Directors of Seplat Philippe Corlay Patrick Deygas Alain Torre Chief Operating Officer Chief Financial Officer General Secretary 2
Slide 3: Safety and emergency evacuation instructions of Salons Hoche
Safety and emergency evacuation instructions of Salons Hoche NOTE: Maurel & Prom is fitted with a management system which aims at managing risks i. Based on OGP recommendations, detailed in report No. 510 – June 2014, the company is fitted with an ‘Operating Management System’ under which all EHS-S
Slide 4: Safety and emergency evacuation instructions: site map and evacuation routes
Safety and emergency evacuation instructions of Salons Hoche Site map and evacuation routes 4
Slide 5: Safety and emergency evacuation instructions: assembly point
Safety and emergency evacuation instructions of Salons Hoche NOTE: Assembly point located on the pavement along the Salons Hoche, or at the back of the building 5
Slide 6: Safety and emergency evacuation instructions: emergency instructions
Safety and emergency evacuation instructions of Salons Hoche NOTE: Emergency instructions FIRE EVACUATION - In case of fire, keep calm and raise - When hearing the alarm bell or alert upon order from a member of staff, CLOSE windows and doors - Call: and EVACUATE - Fire department 01.45.72.30.65 - S
Slide 7: Safety and emergency evacuation instructions: other instructions
Safety and emergency evacuation instructions of Salons Hoche NOTE: Other instructions i. Automated external defibrillator located in front of administrative office of Salons Hoche, or else ask the reception desk. ii. No emergency drill planned today. iii. We wish you a nice and safe stay. 7
Slide 8: 2018 EHS-S performance
2018 EHS-S performance 0.98 2.46 LTIF (Lost Time Injury Frequency) TRIR (Total Recordable Injury Rate) as of as of 31 December 2018 31 December 2018 Health / Safety - Key performance indicators LTIF TRIR 7 5,95 6 5 4,24 4,05 4 3,41 3 2,58 2,46 2 1,41 0,79 0,98 0,54 0,73 1 0,26 0 2014 2015 2016 2017
Slide 9: Maurel & Prom has got A- score on the CDP Climate questionnaire
Maurel & Prom has got A- score on the CDP Climate questionnaire 9
Slide 10: 2018 activity
1 | 2018 activity MAURELY PROM 10
Slide 11: Key figures for 2018
Key figures for 2018 ▪ Sales of $440mm, with a year-on-year increase of 10% Income statement ▪ EBITDA up 30% at $245mm $245mm ▪ Net income increased sharply to $62mm FY 2018 EBITDA ▪ $192mm cash flow from operating activities Cash flows ▪ The majority of the funds were reinvested ➢$93mm reinvested i
Slide 12: 2018 was marked by two country (re)entries: Angola and Venezuela
2018 was marked by two country (re)entries: Angola and Venezuela Activities: Nigeria France Production 20.46% stake in Seplat • Headquarters Exploration & Appraisal • OML 4, 38, 41 • Mios • Production – 45% (9.2% indirect to M&P) • Exploration – 100% (operator) Historical presence • OML 283 Italy •
Slide 13: In 2018, M&P announced three M&A transactions
In 2018, M&P announced three M&A transactions Strategic rationale Impact ✓ Re-entry in the largest oil jurisdiction by reserves globally Acquisition of Shell’s 40% ✓ Truly world class asset with existing production and 2018 WI stake in Petroregional del considerable development potential production:
Slide 14: Oil production in Gabon was below expectations in 2018 but came back in line in Q1 2019
Oil production in Gabon was below expectations in 2018 but came back in line in Q1 2019 Operated Ezanga oil production (FY 2018 & Q1 2019) Commentary 30 000bpd Q1 2019 production: ▪ In Gabon, operated oil production in 2018 stood at 20,342 bopd (16,273 24,666bpd Loss of production due bopd for M&P w
Slide 15: In 2018, gas production in Tanzania reached the contractual plateau of 80mmcfpd
In 2018, gas production in Tanzania reached the contractual plateau of 80mmcfpd Operated Mnazi Bay gas production (FY 2018 & Q1 2019) Commentary 100mmcfd ▪ Operated gas production averaged 83.2 mmcfpd Q1 2019 production: 73.7mmcfpd in 2018, an 69% increase compared to 2017 90mmcfd ➢ 40.0 mmcfpd for
Slide 16: Focus on Seplat (20.46% owned by M&P)
Focus on Seplat (20.46% owned by M&P) 2018 activities and 2019 outlook Source : Seplat investor presentation, 6 March 2019 16
Slide 17: M&P Trading: marketing M&P's oil production
M&P Trading: marketing M&P’s oil production ▪ Maurel & Prom is henceforth marketing crude oil volumes produced March 2019 by M&P Gabon through its French subsidiary, M&P Trading (wholly 620,000 bbl owned by Maurel & Prom) Asia ➢ M&P Trading replaces TOTSA, Total group's trading company, as the buyer
Slide 18: M&P share price performance
M&P share price performance M&P share price since January 2016 Commentary Brent (RHS) M&P share price ▪ Disappointing share price performance despite strong newsflow €7,0 $100 PIEP takeover ➢ Restart of development and exploration period $90 €6,0 drilling $80 ➢ Announcement of M&A transactions €5,0
Slide 19: M&P's shareholder register remains stable following the issuance of shares
M&P’s shareholder register remains stable following the issuance of shares in the context of the transaction with Rockover announced in December 2018 M&P shareholders as of 31 December 2018 Other; 2,00% Treasury shares; Employees; 0,78% 1,75% Rockover; 2,68% ▪ Listing venue: Euronext Paris c.25,000
Slide 20: Summary of M&P's achievements in 2018 and 2019 perspectives
Summary of M&P’s achievements in 2018 and 2019 perspectives Development Corporate ▪ Restart of development drilling ▪ Creation of M&P Trading in less programme on Ezanga (Gabon) Exploration M&A than eight months ➢ 9 wells drilled ➢ First cargo already sold ▪ Preparation of 2 wells in ▪ 3 transaction
Slide 21: Financial update
2 | Financial update MAURELY PROM 21
Slide 22: Improved financial performance in a favourable economic environment
Improved financial performance in a favourable economic environment Main financial aggregates Commentary in $mm 2018 2017 Change ▪ Continuing increase in oil prices in 2018 helped generate sales of $440mm in 2018, a year-on- year increase of 10%. Income statement ➢ Average sale price of oil at US$68
Slide 23: Balance sheet as of 31 December 2018
Balance sheet as of 31 December 2018 Consolidated balance sheet structure ▪ Long-term funding (shareholders’ equity and debt) amount to $1.8bn and broadly cover non-current assets which stand at $1.6bn Données en M$ ▪ The Ezanga permit accounts for 76% of the group’s assets Ressources 1 872 100% ▪ I
Slide 24: Considerations on financing
Considerations on financing Financing situation M&P’s debt maturity profile ▪ All options remain available for M&P ahead of the first debt Term Loan Shareholder Loan maturities in Q1 2020 $200mm ▪ M&P is in a position to meet its financing obligations $180mm $174mm $174mm $174mm ➢ $192mm cash flow f
Slide 25: Update on ongoing exploration activities
3 Update on ongoing exploration activities 25
Slide 26: Ongoing exploration activities
Ongoing exploration activities ▪ Maurel & Prom will conduct a sustained exploration Pre-survey to drill Kama-1 well in Kari (Gabon) programme in 2019/2020: ➢ In Gabon, drilling of exploration wells on the Kari and Nyanga-Mayombé permits, located in southern Gabon, will take place in the second half
Slide 27: Drilling preparations started on the Kari permit
Drilling preparations started on the Kari permit Drilling preparations on Kari as of May 2019 27
Slide 28: Positive exploration result on the Mios permit
Positive exploration result on the Mios permit ▪ On 20 February 2019, Maurel & Prom began drilling the Caudos-Nord-2D (CDN-2D) well on its Mios permit ▪ On 30 March 2019, the well reached its final depth after encountering the oil-saturated Purbeckian sandstone reservoirs ▪ Due to this positive expl
Slide 29: Governance
4 | Governance MAURELY PROM 29
Slide 30: Presentation of the members of the Board of Directors (1/2)
Presentation of the members of the Board of Directors (1/2) ▪ Chairman since 2017 ▪ Over 35 years of experience in the hydrocarbon sector, 30 of which within Total on Aussie Gautama various projects in Indonesia, Norway, Libya and Nigeria ▪ Vice President Geosciences & Reservoir at Total E&P Indones
Slide 31: Presentation of the members of the Board of Directors (2/2)
Presentation of the members of the Board of Directors (2/2) ▪ The Board of Directors of the Company may be composed of three to twelve members, with some exceptions ▪ It is composed of seven directors (four men and three women) and the gender balance is respected. The term of office of the directors
Slide 32: Presentation of the specialised committees
Presentation of the specialised committees Risk Observatory Audit Committee Appointments and Remuneration Committee Carole Delorme d’Armaillé Chairman, Roman Gozalo Independent director Nathalie Delapalme Chairman, Chairman, Independent director Independent director Roman Gozalo Independent director
Slide 33: Co-option and renewal of mandates (1/2)
Co-option and renewal of mandates (1/2) 1/ Co-option The Board of Directors proposes that the General Shareholders’ Meeting ratify the co- opting of Aris Mulya Azof (fifth resolution), Narendra Widjajanto (sixth resolution) and Ida Yusmiati (seventh resolution) as members of the Board of Directors,
Slide 34: Co-option and renewal of mandates (2/2)
Co-option and renewal of mandates (2/2) 2/ Renewal of mandates The directorships of Aussie B. Gautama and Denie S. Tampubolon are due to expire at the closing of this General Shareholders’Meeting. Their term of office as Directors would be renewed for a period of three years (eighth and ninth resolu
Slide 35: Compensation of corporate officers – Ex post
Compensation of corporate officers – Ex post ▪ Compensation components paid to the Chairman of the Board and the CEO for 2018 ✓ For the Chairman: Fixed remuneration plus attendance fees ✓ For the CEO: Fixed remuneration, annual variable remuneration (depending on the achievement of performance crite
Slide 36: Compensation of corporate officers – Ex ante
Compensation of corporate officers – Ex ante ▪ Compensation policy of the Chairman of the Board and the CEO for 2019 Chairman Compensation policy 2019 Application for Mr. Gautama Fixed remuneration Yes (€125,000) Attendance fees Yes CEO Compensation policy 2019 Application for Mr. Hochard Fixed remu
Slide 37: Thank you for your attention
Thank you for your attention 37