DNO ASA. Corporate Presentation rd Quarter Q 2002 DNO ASA

Transcription

1 DNO ASA Corporate Presentation rd Quarter

2 Highlights 3Q 2002 Record financial performance from Oil & Gas activity Strong cashflow and operating margins Positive results from drilling activities in Yemen and UK Signed agreements for two new assets Upgraded Oil & Gas reserves 2

3 Highlights 3Q 2002 cont. Best financial performance from Oil & Gas activities ever: Operating Revenue MNOK 420 EBITDA MNOK 277 Net Back after tax MNOK 180 EBIT MNOK 189 Net Profit MNOK 46 3

4 4

5 DNO in the world BOPD Norway UK / Ireland PL 103B Jotun Heather Glitne Field Yemen West Heather PL 203 Tasour Solan/Strathm PL 148 Sharyoof Thistle* PL 006C Block 43 Seven Heads * Subject to DTI approval 5

6 2002 Production Production above target UK NORWAY YEMEN TOTAL YTD average BOPD J F M A M J J A S 6

7 s Production YTD 3rd Quarter Production YTD 3rd Quarter BOPD

8 UK Highlights YTD Production BOPD New Partners for West Heather Satellites Successful drilling results from West Heather Signed Agreement for Thistle Operatorship PRODUCTION J F M A M J J A S 8

9 Production Test on West Heather 6000 BOPD 9

10 Heather Area Development Plan 3 Production wells drilled by end

11 Thistle Thistle Heather W. Heather Thistle Platform is located 75 km NE of Heather Current Production BOPD 11

12 UK Proven + Probable Reserves (MM BBLS) North Terrace % % Heather Brent Heather Triassic % % % West Heather Thistle Total Net DNO MM BBLS 65.8 MM BBLS 12

13 Norway Highlights PL 203 Jotun 103B Glitne PL 048 PL 148 PL 006C YTD Production BOPD Glitne Performance better than Plan 2 Infill Wells drilled on Jotun PL 203 Reserves Increased PRODUCTION J F M A M J J A S 13

14 Norway Proven + Probable Reserves (MM BBLS) Jotun 49 % Glitne 9 % PL % Gross DNO Initial Reserves Produced to date Remaining

15 Yemen Highlights YTD Production BOPD Production above Target New Well on Tasour Doubled Reserves Drilling activities continue in 4 Q PRODUCTION J F M A M J J A S 15

16 Tasour Map New Well 16

17 Yemen Proven + Probable Reserves (MM BBLS) Tasour; 19,7 36 % Sharyoof; 35,7 64 % Gross DNO Initial Reserves 55,2 18,9 Produced to date 13,0 4,6 Remaining 42,2 14,3 17

18 Seven Head Location 18

19 Seven Heads - Overall Field Layout Schematic Reserves (p + p) Gross 300 Bcf / 55 Mill. bbls oe DNO 38 Bcf / 7 Mill. bbls oe First gas production planned for 3 Q

20 Summary and Short Term Outlook 2002 Production > BOPD Total DNO P + P Reserves increased to 119 Mill. Bbls * West Heather Development Plan expected to be presented to DTI beginning of 2003 Continued drilling activities in Yemen during next 3-4 months Seven Heads Development Plan expected to be approved by end 2002 with first gas production planned 3 Q 2003 Thistle take-over could take place by end 2002 subject to DTI approval increasing production to > BOPD * Including Thistle 20

21 Key Financials 3rd Quarter

22 Financial Highlights 3Q 2002 EBITDA NOK 277 mill., YTD NOK 716 mill. Net back after taxes paid NOK 180 mill, YTD 457 NOK mill. Oil price increase offset by lower production and FX rate Increased reserve estimates in Yemen reduce DD&A expenses NOK 5.4 mill. amortization of Timan Pechora project NOK 20 mill. share of loss in Petrolia Drilling ASA in 3rd quarter 22

23 Financial Highlights 3Q 2002 Strong improvement in net finance Increase in taxes from NCS / INT (Bl. 53 Cost Recovery) Net profit NOK 46 mill. (up 10% from 3Q 01) NOK 35 mill. share issue 23

24 DNO Production vs. Brent Oil Price HIGHLIGHTS: Increase in Brent quarterly average to USD in 3Q 02 bbl/day usd/bbl Average production for 3Q BOPD (3Q ) Prod mth bbl/d Brent USD/bbl 24

25 Operating Revenue 3Q 2002 NOK Mill Revenues per Business Area HIGHLIGHTS: NOK 440 mill. operating revenue in 3Q 02 (up 35% from 3Q 01) Operating revenue decline 3.7% in 3Q 02 from 2Q 02, due to fall in production NOK 22 mill. and lower FX NOK 33 mill, partly offset by higher oilprices NOK 38 mill. 0 Q101 Q201 Q301 Q401 Q102 Q202 Q302 NCS UKCS INT IOT Total 25

26 Income Statement 3Q 2002 GROUP (NOK mill.) 3Q02 2Q02 1Q02 YTD02 YTD01 Operating Revenues Exploration and Impairment Operating Exp., excl expl & DD&A EBITDA * EBITDAX ** DD&A Abandonm. Provisions, Write-down Operating Profit Earnings in Associated Companies Net Financial Items Profit (loss) before Tax Taxes Profit (loss) after Tax HIGHLIGHTS: Record EBITDA and Operating Profit DDA reduced due to increased reserve estimates in Yemen NOK 20 mill. share of loss in PDR Increase in taxes due to INT (Bl. 53) and NCS No adjustment of deferred tax asset * EBIT adjusted for DD&A, abandonment provisions and write-downs ** EBITDA adjusted for G&G, exploration, dry hole expenses and impairment 26

27 Net Finance 3Q 2002 HIGHLIGHTS: Lower unrealized disagio Strong improvement in net finance NOK 46 mill. YTD income from FX-contracts and swaps GROUP (NOK mill.) 3Q02 2Q02 1Q02 Ytd 02 Ytd 01 Interest revenues FX-contracts, swaps Agio, other financial revenues Interest expenses Disagio Other financial expenses Net Finance

28 Revenues, EBITDA, EBIT and Net Profit Revenues, EBITDA, EBIT, net profit HIGHLIGHTS: 500 Increasing EBITDA and Operating Profit Mill NOK (current) Net Profit improvement 3rd quarter (PDR ASA writedown 2nd Quarter) Steady development in net profit adjusted for PDR ASA, Timan Pechora, and dry well costs Q101 Q201 Q301 Q401 Q102 Q202 Q302 Revenues EBIT Net profit, adjusted EBITDA Net profit 28

29 Net Back After Tax 3Q 2002 Mill NOK (current) EBITDA, EBITDAX and NETBACK HIGHLIGHTS: Netback (after taxes paid) NOK180 mill. in 3Q 02 (NOK 164 mill. in 3Q 01) Q101 Q201 Q301 Q401 EBITDAX EBITDA Netback Q102 Q202 Q302 29

30 EBITDA per Business Area EBITDA per Business Area HIGHLIGHTS: Mill NOK INT still generates more than 70% of total EBITDA NCS improved from 2nd quarter due to no dry well costs in 3Q Q101 Q201 Q301 Q401 Q102 Q202 Q302 NCS UKCS INT Group 30

31 EBIT per Business Area 250 EBIT per Business Area (O&G) HIGHLIGHTS: Strong EBIT due to INT and NCS NOK Mill Q101 Q201 Q301 Q401 Q102 Q202 Q302 NCS UKCS INT Total 31

32 Group Direct Field Expenses per bbl ,33 Production and transportation expenses - total and per barrel oil equiv. 10,16 11,88 9,35 6,75 7,03 7, HIGHLIGHTS: Per bbl direct field expenses USD 7.61 in 3Q 02 (down 36% from 3Q01) 3Q 02 total direct field expenses reduced by 5.7% compared to last quarter Q101 Q201 Q301 Q401 Q102 Q202 Q302 Direct Field pr bbl o.e. Direct Field Expenses 32

33 Group Direct Field Expenses per bbl Production and transportation expenses per barrel oil equiv. HIGHLIGHTS: Lower direct field expenses INT and UKCS in 3Q Lower production in UKCS and NCS increases pr bbl costs. USD / Bbl o.e ,33 10,16 11,88 9,35 6,75 7,03 7,61 0 Q101 Q201 Q301 Q401 Q102 Q202 Q302 Direct Field pr bbl o.e. NCS UKCS INT 33

34 Balance Sheet 3Q 2002 Assets HIGHLIGHTS: Received USD 15 mill. payment from Unocal in exchange for letter of credit covering Heather decomissioning Zero book value of shares in Petrolia Drilling ASA NOK 73 mill. cash increase GROUP Assets 3Q02 2Q02 1Q02 YE 2001 YE 2000 (NOK mill.) Fixed Assets Financial Fixed Assets Intangible Assets Total Fixed Assets Cash and Cash Equiv Other Current Assets Total Current Assets Total Assets

35 Balance Sheet 3Q 2002 Shareholders Equity and Liabilities HIGHLIGHTS: Decrease in long-term liabilities due to NOK 80 mill. reduction in deferred tax liability Increase in short-term debt due to higher payable tax and accrued expenses GROUP Shareholders' Equity and Liabilities 3Q02 2Q02 1Q02 YE 2001 YE 2000 (NOK mill.) Shareholders Equity Interest-Bearing Long-Term Debt Provisions for Liabilities and Charges Total Long-Term Liabilities Interest-Bearing Short-Term Debt Other Short-Term Debt Total Short-Term Debt Total Debt and Shareholders Equity

36 Cash Flow 3Q 2002 Cash flow Group YTD YTD 3Q02 2Q02 1Q02 (NOK mill.) 3Q02 3Q01 Operating activities: Consolidated profit before tax Taxes paid for the period Depreciation, depletion and amortisation Associated companies Changes in working capital / other adjustments Cash flow provided by operating activities Investing activities: Additions to property, plant and equipment Net other additions / proceeds from sale of assets Cash flows used in investing activities Financing activities: Loan proceeds Principal repayments Treasury shares purchased Ordinary shares issued Net cash used by financing activities Net Change in Cash Cash at beginning of Period Cash at end of Period* * Net of Removal Deposit 36

37 Capex and Cash Flow from Operations Capital Expenditure and CF from Operations HIGHLIGHTS: Strong cash flow cover of investments Mill NOK ,00 5,00 4,00 3,00 2,00 1, ,00 Times coverage 3rd quarter investments: UKCS NOK 33 mill Bl. 32 NOK 28 mill Bl. 53 NOK 25 mill IOT AS NOK 5 mill NCS NOK 14 mill -50 Q101 Q201 Q301 Q401 Q102 Q202 Q302-2,00 CF Operating Activities CF coverage of investments CF Investing Activities Full coverage 37

38 Key Figures 3Q 2002 HIGHLIGHTS: Strengthening of margins. After tax cash flow return (CROGI) 22% YTD. GROUP 3Q02 2Q02 1Q02 YTD02 YTD01 Earnings per Share NOK 0,91-1,34 0,49 0,05 2,03 EBITDA per Share NOK 5,48 4,94 3,78 14,07 10,21 EBITDA Margin % 62,8 54,5 51,8 56,6 55,8 EBIT Margin % 42,9 31,5 25,2 33,6 37,3 ROACE * % 14,6-14,5 8,6 2,8 13,4 CROGI * % 25,2 18,6 21,9 22,0 27,8 Equity Ratio % 41,2 40,3 38,8 41,2 39,4 Debt/EBITDA * x 0,6 0,6 1,0 1,1 1,7 EBITDA/Interest Exp. x 18,6 19,1 12,8 16,7 12,6 * Annualised CROGI : EBITDA - taxes paid and government share of profit oil / gross investments ROACE : Net profit + after-tax interest expenses / average capital employed 38

39 20 Largest Shareholders DNO ASA 20 largest shareholders as of 18th November 2002 Share-holding Percentage Name Nationality ,11 INCREASED OIL RECOVERY AS NOR ,27 LARSEN OIL & GAS AS NOR ,69 DET STAVANGERSKE DAMPSKIPSELSKAP NOR ,15 THE LAW DEBENTURE TRUST GBR ,84 DNO ASA NOR ,83 UNISTAR HOLDINGS INC USA ,75 LIVIUS INTERIØR AS NOR ,5 SKAGEN VEKST NOR ,87 SLETTHEI AS LEIF INGE NOR ,63 VESTA LIV AS AKSJER NOR ,47 BUS AS NOR ,1 FIRSTNORDIC NORGE NOR SPAREBANKEN SOGN V/FINANSAVD. NOR ,94 BL TRADING & SERVICES NOR ,84 MYKJÅLAND BERNT NOR ,82 HALVORSEN JAN GUNNAR NOR ,81 TINE PENSJONSKASSE NOR ,75 SLETTHEI LEIF INGE NOR ,64 MOLVÆR IVAR-ARVID NOR ,59 MOOR SHIPPING LTD., GBR Total: % of total shares ,6 39

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