Slide 1: 2020 Q1 Interim Results Presentation
2020 Q1 Interim Results Presentation
Slide 2: Corporate overview and operational highlights
Corporate overview and operational highlights Cover Photo: Celebrating completion of Zartik drilling pad in preparation to spud in Kurdistan Page 2
Slide 3: DNO corporate overview
DNO corporate overview • DNO moved quickly in mid-March 2020 to scale back expenditures and preserve cash following oil price crash and growing restrictions on operations from spreading coronavirus pandemic • Cut 2020 budget by USD 350 million or 35 percent to USD 640 million, with reductions across
Slide 4: DNO corporate overview (cont)
DNO corporate overview (cont) • Committed to retain position as the leading international oil company in Kurdistan with a 75 percent interest in two fields contributing more than a quarter of oil exports from the region • While strengthening North Sea presence with exploration success through a prom
Slide 5: Q1 2020 operational highlights
Q1 2020 operational highlights • On a quarterly basis, Q1 2020 operated production in Kurdistan of 115,207 bopd (122,795 bopd in Q4 2019) • Of which 81,221 bopd represented Company Working Interest (CWI) production net to DNO in Q1 2020 in Kurdistan (86,570 bopd in Q4 2019) • North Sea operations co
Slide 6: Q1 2020 financial highlights
Q1 2020 financial highlights • Revenues of USD 206 million in Q1 2020 (USD 275 million in Q4 2019) • Received payments totaling USD 107 million from Kurdistan in Q1 2020 and another USD 90 million covering October 2019 and March 2020 exports after the reporting period for total of USD 197 million •
Slide 7: Historical production and revenue trends
Historical production and revenue trends CWI production Revenue from oil and gas boepd USD million 120 000 1 200 100 000 1 000 80 000 800 60 000 600 40 000 400 20 000 200 0 0 Page 7
Slide 8: Kurdistan fundamentals remain strong
Kurdistan fundamentals remain strong • Kurdistan continues to drive DNO operations • Q1 2020 Tawke gross license level operated production averaged 115,207 bopd (122,795 bopd in Q4 2019) • To which Tawke field contributed 61,493 bopd in Q1 2020 (63,881 in Q4 2019) • And Peshkabir field contributed 5
Slide 9: Appraising and exploring at Baeshiqa
Appraising and exploring at Baeshiqa • Baeshiqa license in Kurdistan portfolio contains two large structures with multiple target reservoirs, including in Cretaceous, Jurassic and Triassic formations • Last November, DNO reported a discovery in the Baeshiqa-2 exploration well after flowing variable
Slide 10: Building on North Sea platform
Building on North Sea platform • North Sea CWI production averaged 18,636 boepd in Q1 2020 (18,975 boepd in Q4 2019) • Of which 14,330 bopd of oil and condensate and 25.9 million cubic feet per day of gas (mmcfd) in Q1 2020 (14,314 bopd and 28.0 mmcfd in Q4 2019) • Awarded 10 exploration licenses un
Slide 11: Cash return to shareholders and bond buybacks
Cash return to shareholders and bond buybacks • In January 2020, DNO completed a shareholder authorized share buyback of up to 10 percent, increasing shares held by the Company from 35,000,000 to 108,381,415 which in February 2020 were resolved to be cancelled, following which total outstanding shar
Slide 12: Additional financing secured
Additional financing secured • In November 2019 DNO increased and extended its RBL and exploration financing facility (EFF) • RBL increased from USD 245 million to USD 350 million with additional tranche of USD 350 million with November 2026 maturity date and covering North Sea assets • EFF increase
Slide 13: 2020 forward drilling plan
2020 forward drilling plan • In 2020, DNO to drill one exploration well in Kurdistan (Zartik-1) as operator and no development wells but one drilling rig cold stacked in Tawke and another at Peshkabir can quickly be mobilized if conditions warrant • In Norway, DNO’s 2020 drilling program has also be
Slide 14: 2020 forward drilling plan (cont)
2020 forward drilling plan (cont) • Hades appraisal well (DNO 20 percent with OMV as operator) to spud in Q2 2020 in the Norwegian Sea with evaluation ongoing of a development together with the Iris discovery (appraised in 2019) with recoverable resources ranging 43-135 MMboe gross • Drilling campai
Slide 15: Financial review
Financial review Page 15
Slide 16: DNO financial results – key figures
DNO financial results – key figures Revenue Netback USD million USD million Operating profit 300 250 USD million 275 150 266 214 250 99 227 200 100 206 177 204 200 38 44 150 50 135 150 107 109 0 100 -12 100 -50 50 50 -100 -106 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 -150 2019 2019 2019 2019 2020 2019 2019
Slide 17: Financial summary
Financial summary USD million Q1 2020 Q4 2019 Q1 2019 2019 Revenues 205.6 274.6 204.1 971.4 Cost of goods sold -167.2 -151.7 -117.0 -541.4 Gross profit 38.4 123.0 87.1 430.0 Expensed exploration -14.8 -47.9 -32.8 -146.4 Administrative expenses 4.6 -6.1 -15.4 -26.1 Other operating income/expenses -0.
Slide 18: Annual operational spend
Annual operational spend USD million Capex Expex Opex Abex 900 800 786 700 600 520 500 400 293 300 200 100 0 2018 2019 2020 (projected) Note: Exploration cost (Expex) and abandonment cost (Abex) are pre-tax. Operating cost (Opex) includes processing and transportation tariffs in Norway and the UK. A
Slide 19: 2020 projected operational spend by region
2020 projected operational spend by region USD million Kurdistan North Sea 600 520 500 400 333 300 187 200 100 0 Full Year 2020 Q1 2020 Rest of Year Page 19
Slide 20: Q1 2020 cash flow
Q1 2020 cash flow USD million 700 -113 600 95 76 543 500 486 400 300 200 100 0 Cash at Cash from Investment Tax & Cash at end 2019 operations activities finance end Q1 2020 • Investment activities split USD 58 million in the North Sea and USD 55 million in Kurdistan Page 20
Slide 21: Capital structure
Capital structure Cash deposits Financial assets Equity ratio USD million USD million Percent 800 250 100 700 90 624 200 80 600 574 543 70 486 500 145 150 60 400 109 110 50 44 94 40 100 40 37 36 300 254 32 30 200 50 36 20 100 10 0 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2019 2019 2019 2019
Slide 22: Important notice
Important notice This presentation (the “Presentation”) has been prepared and delivered by DNO ASA (“DNO” or the “Company”). Copyright of all published material including photographs, drawings and images in this document remains vested in DNO and third party contributors as appropriate. Accordingly,
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