Presentation of Interim results. 2nd quarter 2003 Managing Director Helge Eide CFO Haakon Sandborg

Transcription

1 Presentation of Interim results 2nd quarter 23 Managing Director Helge Eide CFO Haakon Sandborg

2 Highlights! Good operational and financial results! Broom Development Plan presented to DTI! Positive results from drilling in PL 23! Yemen production performance better than target! Seven Heads development in line with plan

3 Key figures All figures in million NOK Q2 23 Q2 22 Jan-Jun 23 Jan-Jun Operating Revenues EBITDA Operating Profit Profit (loss) before Tax 27 (7) Profit (loss) after Tax 53 (68) 162 (43) (77) Netback

4 Achievements last 5 years Growth in Production,, Reserves and Profitability

5 Growth in Production & Reserves Production (MMBoe) 8,2 DNO 2P by Geography (**) MMBoe 16 UK INT Norway ,8 5, , ,9 1, ** International includes Yemen and Ireland (Seven Heads).

6 Production and transportation cost 25 Total (USD per barrel) 25 UK (USD per barrel)* ,97 16,52 13,25 1,19 7,19 9, ,97 16,92 16,17 18,64 18,53 2, Norway (USD per barrel) 25 Yemen (USD per barrel) ,68 5,9 6,5 4, ,25 3,25 2,65 2, * Numbers excluding PRT

7 Revenue, EBITDA and EBIT 1 8 Revenue (MNOK) 1 1 EBITDA and EBIT (MNOK) YTD YTD

8 Key Strengths! Successful track record of production and reserve growth! Significant cash flow generation! Experienced and efficient field operator! Flexibility to adjust cost and investment level to market trends! Substantial organic growth potential! Diversified portfolio of assets! Experienced management and technical team

9 Operations Developments in DNO s assets

10 DNO in the world UK Equity Operator Norway Equity Operator Heather 1, DNO Jotun Unit 7, Exxon/Mobil Broom 55, DNO PL 13B 7, DNO Thistle 99, DNO Glitne & Enoch 1, Statoil Solan/Strathm 3,7 Amerada Hess PL 23 15, Marathon PL 88BS* 15, Marathon Ireland Seven Heads Equity 12,5 Operator Ramco PL 36C* PL 148 PL B 15, 5, 2, Marathon DNO Statoil PL 6C 1, DNO Eq. Guinea Block P Equity 5, Operator Ocean Energy Yemen Equity Operator Tasour 41, DNO Sharyoof 24,45 Dove Energy Block 43 73, DNO Mozambique Equity Operator Inhaminga Block 8, DNO

11 Monthly Oil Production 3 Production bbl/day 3 Bbl/day per business area INT NCS UKCS

12 Overview; United Kingdom Quarterly Production (bbl/day) Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Business Unit Revenue (MNOK) Highlights! Broom development plan presented to DTI! Cost reduction on Thistle! Segment performance 1H 3: Revenue: MNOK 327 EBIT: MNOK 6 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23

13 Broom Broom Project overview! DNO 2P reserves: 25 MBOE! CAPEX phase 1: 75 MUSD *! First oil is expected in the summer of 24 Heather 23 & 24: 55 MUSD until First Oil

14 Overview; Norway Quarterly Production (bbl/day) Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Business Unit Revenue (MNOK) Highlights! Infill drilling on Jotun completed increased production! PL 23 discoveries! PL 167 drilling small amounts of hydrocarbons! Segment performance 1H 3: Revenue: MNOK 23 EBIT: MNOK 12 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23

15 PL23 BOA KAMELEON Development Schematic Water Disposal EAST KAMELEON FPSO Gas Export Project overview! DNO 2 P reserves: 4 MBOE *! CAPEX to first oil: 38 MUSD! First Oil 25 / 26 PL15 KNELER HEIMDAL GAS CENTRE KEY Oil Flowline Umbilical Gas Lift Produced Water Injection Gas Export Riser Base Drill Centre One of several development concepts under considerations * DNO figures includes PL 23 & PL 15

16 Overview; International Quarterly Production (bbl/day) Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Business Unit Revenue (MNOK) Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Highlights! Production better than target! Oil discovery West of the Tasour-Field! Acquired an 8% interest and operatorship in Mozambique! Segment performance 1H 3: Revenue: MNOK 462 EBIT: MNOK 321

17 Seven Heads Project overview! DNO 2P reserves: 7 MBOE! CAPEX: 26,4 MUSD! Production is expected to commence in Q4 24! Gas contract with Innogy

18 Outlook 23! Secure long term financing for DNO Group! Progress the Broom Development Project! Gas production from Seven Heads Gas Field in 4Q! Production well in Glitne Field to be completed in 3 Q! Continue appraisal & exploration drilling in all Yemen licenses 24! Commence production from Broom during summer 24! PL 23 PUD early 24 (DNO s expectations)! Complete a two well exploration program in Inhaminga Block in Mozambique! Possible drilling of first exploration well in Block P, Equatorial Guinea! Pursue potential acquisition opportunities

19 Financials 2nd Quarter 23 CFO Haakon Sandborg

20 Financial Highlights! Lower oil price led to a reduction in revenues! Lower exploration costs! G&A costs further reduced! Positive net finance! Tax payment in Norway of NOK 77 million! NetBack of NOK 87 million in Q2 and NOK 323 million in first six months of 23

21 P & L Statement All figures in million NOK Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 YTD 3 YTD 2 Operating Revenues Exploration and Impairment Operating Expenses, excl DD&A EBITDA EBITDAX DD&A Abandonment, Provisions, Write-down Operating Profit Earnings in Associated Companies Net Financial Items Profit (loss) before Tax (191) (81) (7) (33) (197) (73) (5) (21) (173) (91) (49) 91 (46) (7) (15) (78) (9) 196 (2) (1) (53) (155) (96) (9) 144 (122) (3) (7) 1 57 (32) (387) (155) (11) (86) (299) (182) (21) 237 (126) (43) 68 Taxes Profit (loss) after Tax (154) 53 (191) 18 (133) (79) (12) 46 (6) (68) (345) 162 (111) (43)

22 Financial items All figures in million NOK Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 YTD 3 YTD 2 Interest revenues FX-contracts, swaps Agio, other financial revenues (3) Financial revenues Interest expenses 8 (11) 25 (12) 53 (14) 5 (15) 43 (13) 33 (23) 52 (28) Disagio / unrealised agio Other financial expenses (1) (8) (22) 3 (3) (58) (1) 22 2 (62) (6) Financial expenses Net Finance (1) (44) 9 (15) (1) (72) (29) 1 34 (95) (43)

23 BS - Assets All figures in million NOK Fixed Assets Financial Fixed Assets Intangible Assets Total Fixed Assets Cash and Cash Equiv Other Current Assets Total Current Assets TOTAL ASSETS

24 BS - Equity and Liabilities All figures in million NOK 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 EQUITY AND LIABILITIES

25 Cash Flow All figures in million NOK Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 YTD 3 YTD 2 Consolidated profit before tax Taxes paid for the period Depreciation, depletion and amort. Associated companies Changes in working capital / adjustm. CF provided by operating activities CF used in investing activities CF from financing activities Net Change in Cash Cash at beginning of period Cash at end of Period 27 (27) (198) 1 (44) (119) (141) (156) (255) (34) (125) (97) (116) (7) (117) (23) (95) (19) (326) (339) (162) (143) 82 (9) (2) (28)

26 Oil Production 3 25 Quarterly Production (bbl/day) UK NORWAY YEMEN! High production level maintained in 2 nd quarter Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23

27 Oil price vs FX (Jan 23 - Jun 23) 4 Oil price development (USD/BBL) 7,5 FX development (NOK/USD) , 25 2 J F M A M J 6,5 J F M A M J

28 Revenue development Revenue per business area (MNOK) NCS UKCS International IOT! Revenue reduction primarily due to lower oil price Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23

29 Production & transport expenses 2 Direct field expense (MNOK.) 2 Direct field expense (MNOK.) Maintenance/Repairs Well intervention/workovers Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23

30 EBIT development EBIT per business area (MNOK) NCS UKCS International! A fall in EBIT compared to Q1 due to lower oil price Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23

31 EBITDA and NetBack 4 EBITDA per unit (MNOK) NCS UKCS INT 4 Group Net Back (MNOK) Net Back Taxes paid Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23

32 Cash return on gross investments 45 % CROGI (actual) 45 % CROGI (normalized) 4 % 42 % 4 % 35 % 35 % 3 % 3 % 25 % 2 % 15 % 1 % 27 % 15 % 23 % 2 % 29 % 15 % 14 % 25 % 2 % 15 % 1 % 15 % 11 % 17 % 14 % 19 % 11 % 26 % 11 % 5 % 5 % % Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 % Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23

33 Key Figures Q2 23 Q1 23 Q4 22 Q3 22 Q Production per day Direct Field Cost per barrel 9,33 8,84 7,61 7,61 7,3 7,19 CROGI (actual) 14,3 % 41,6 % 14,6 % 28,6 % 2,3 % 25,9% CROGI (normalized) 1,8 % 26,4 % 1,6 % 18,9 % 13,8 % 17,6% ROACE (actual) 15,1 % 3,7 % -18,3 % 14,6 % -14,5 % -2,3% ROACE (adjusted) 16,6 % 32, % 9,8 % 21,2 % 28,2 % 15,3% Earnings per Share,97 2,4 (1,55),91 (1,34) (1,5) EBITDA Margin 62, 61, 57,4 64,3 54,5 57,2 NetBack Margin 18,2 4,7 2,7 42,3 28,8 32,6 EBIT Margin 42, 47, 21,3 44,4 31,5 3,9 Equity Ratio 46, 43, 44,2 41,2 4,3 44,2 Debt/EBITDA,4,4,6,5,6,6 EBITDA/Interest Expense 27,6 29,5 17,3 19,1 19,1 17,

34 Appendices

35 Share price development DNO Share Price last 12 months DNO (NOK) 24 DNO OSE1 Oslo Børs All-share Index OSE (Index) juli 22 juli 23 1

36 Shareholders NAME SHARES PERCENT NATIONALITY 1 INCREASED OIL RECOVERY ,68 NOR 2 DET STAVANGERSKE DAMSKIPSSELSKAP 2 3,55 NOR 3 THE LAW DEBENTURE TRUST ,55 GBR 4 KAS DEPOSITORY TRUST ,31 NLD 5 LARSEN OIL & GAS AS ,2 NOR 6 SKAGEN VEKST 1 6 2,84 NOR 7 UNISTAR HOLDINGS INC ,73 USA 8 EGD SHIPPING II AS ,58 NOR 9 SLETTHEI AS LEIF INGE ,26 NOR 1 NORDEA LIV NORGE AS ,22 NOR TOTAL ,92