Presentation of Interim results 2nd quarter 23 Managing Director Helge Eide CFO Haakon Sandborg
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
Key figures All figures in million NOK Q2 23 Q2 22 Jan-Jun 23 Jan-Jun 22 22 Operating Revenues 478 457 1 57 826 1 691 EBITDA Operating Profit 294 21 249 144 649 472 44 237 967 523 Profit (loss) before Tax 27 (7) 56 68 287 Profit (loss) after Tax 53 (68) 162 (43) (77) Netback 87 132 323 278 552
Achievements last 5 years Growth in Production,, Reserves and Profitability
Growth in Production & Reserves 9 8 7 6 Production (MMBoe) 8,2 DNO 2P by Geography (**) MMBoe 16 UK INT Norway 143 14 126 12 5 4 4,8 5,2 1 8 63 86 3 2 2,5 6 4 34 1,9 1,1 1998 1999 2 21 22 3.6.3 2 1999 2 21 22 3.6.3 ** International includes Yemen and Ireland (Seven Heads).
Production and transportation cost 25 Total (USD per barrel) 25 UK (USD per barrel)* 2 15 1 5 17,97 16,52 13,25 1,19 7,19 9,9 2 15 1 5 17,97 16,92 16,17 18,64 18,53 2, 1998 1999 2 21 22 3.6.3 1998 1999 2 21 22 3.6.3 25 Norway (USD per barrel) 25 Yemen (USD per barrel) 2 2 15 15 1 1 5 4,68 5,9 6,5 4,39 1998 1999 2 21 22 3.6.3 5 3,25 3,25 2,65 2,8 1998 1999 2 21 22 3.6.3 * Numbers excluding PRT
Revenue, EBITDA and EBIT 1 8 Revenue (MNOK) 1 1 EBITDA and EBIT (MNOK) 1 6 1 4 1 691 1 9 8 1 2 1 8 1 199 1 57 7 6 5 4 6 673 3 4 2 2 266 192 1 1998 1999 2 21 22 YTD -1 1998 1999 2 21 22 YTD
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
Operations Developments in DNO s assets
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 167 + 167B 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
Monthly Oil Production 3 Production bbl/day 3 Bbl/day per business area 25 25 2 15 2 15 INT NCS UKCS 1 1 5 5 22 23 22 23
Overview; United Kingdom 1 5 2 15 1 5 Quarterly Production (bbl/day) 9 77 9 58 5 82 5 443 4 987 4 985 4 44 4 274 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Business Unit Revenue (MNOK) 185 149 14 96 95 85 82 74 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
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
Overview; Norway 1 5 15 1 5 Quarterly Production (bbl/day) 7 68 6 934 6 439 6 11 6 338 6 267 6 258 3 944 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Business Unit Revenue (MNOK) 126 127 122 119 114 17 97 94 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
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
Overview; International Quarterly Production (bbl/day) 15 13 963 12 91 12 837 11 572 1 11 5 7 515 5 3 455 2 889 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Business Unit Revenue (MNOK) 3 25 265 2 217 22 22 21 15 1 128 5 61 5 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
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
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
Financials 2nd Quarter 23 CFO Haakon Sandborg
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
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 478 1 (191) 294 293 (81) (7) 21 7 27 58 (33) (197) 355 388 (73) (5) 272 27 299 425 (21) (173) 244 265 (91) (49) 91 (46) 9 54 44 (7) (15) 283 29 (78) (9) 196 (2) (1) 166 457 (53) (155) 249 32 (96) (9) 144 (122) (3) (7) 1 57 (32) (387) 649 681 (155) (11) 472 34 56 826 (86) (299) 44 526 (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)
Financial items All figures in million NOK Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 YTD 3 YTD 2 Interest revenues 2 3 4 4 2 5 5 FX-contracts, swaps Agio, other financial revenues 2 4 18 4 18 31 4 (3) 36 5 2 8 42 5 Financial revenues Interest expenses 8 (11) 25 (12) 53 (14) 5 (15) 43 (13) 33 (23) 52 (28) Disagio / unrealised agio Other financial expenses 7 3 15 (1) (8) (22) 3 (3) (58) (1) 22 2 (62) (6) Financial expenses Net Finance (1) 7 2 27 (44) 9 (15) (1) (72) (29) 1 34 (95) (43)
BS - Assets All figures in million NOK Fixed Assets Financial Fixed Assets 3.6.23 1 539 269 31.3.23 1 427 269 31.12.22 1 379 256 31.12.21 1 372 485 Intangible Assets 133 135 142 15 Total Fixed Assets Cash and Cash Equiv Other Current Assets Total Current Assets TOTAL ASSETS 1 94 223 273 495 2 436 1 83 267 275 541 2 371 1 777 84 18 264 2 41 2 6 164 184 347 2 353
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 31.6.23 1 121 456 395 851 51 413 464 2 436 31.3.23 1 21 579 382 962 389 389 2 371 31.12.22 92 553 346 898 241 241 2 41 31.12.21 942 651 441 192 32 32 2 353
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) 81 63 144 (198) 1 (44) 267 223 299 (119) 73 38 292 (141) 32 183 84 267 54 (156) 156 46 64 163 (255) (34) (125) 21 84 166 (97) 83 2 6 178 (116) 11 73 137 21 (7) (117) 11 122 1 99 (23) (95) (19) 156 137 56 (326) 155 1 436 (339) 42 139 84 223 68 (162) 193 126 (143) 82 (9) (2) (28) 164 137
Oil Production 3 25 Quarterly Production (bbl/day) UK NORWAY YEMEN! High production level maintained in 2 nd quarter 2 15 1 5 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23
Oil price vs FX (Jan 23 - Jun 23) 4 Oil price development (USD/BBL) 7,5 FX development (NOK/USD) 35 3 7, 25 2 J F M A M J 6,5 J F M A M J
Revenue development 7 6 5 Revenue per business area (MNOK) NCS UKCS International IOT! Revenue reduction primarily due to lower oil price 4 3 2 1 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23
Production & transport expenses 2 Direct field expense (MNOK.) 2 Direct field expense (MNOK.) Maintenance/Repairs Well intervention/workovers 15 165 168 15 1 116 117 112 122 115 12 1 5 5 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23
EBIT development 35 3 25 EBIT per business area (MNOK) NCS UKCS International! A fall in EBIT compared to Q1 due to lower oil price 2 15 1 5-5 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23
EBITDA and NetBack 4 EBITDA per unit (MNOK) NCS UKCS INT 4 Group Net Back (MNOK) Net Back Taxes paid 3 3 2 2 1 1 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23 Q31 Q41 Q12 Q22 Q32 Q42 Q13 Q23
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
Key Figures Q2 23 Q1 23 Q4 22 Q3 22 Q2 22 22 Production per day 28 153 29 36 23 513 21 928 23 591 22 399 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,
Appendices
Share price development DNO Share Price last 12 months DNO (NOK) 24 DNO OSE1 Oslo Børs All-share Index OSE (Index) 16 22 15 2 14 18 13 16 12 14 11 12 juli 22 juli 23 1
Shareholders NAME SHARES PERCENT NATIONALITY 1 INCREASED OIL RECOVERY 6 563 142 11,68 NOR 2 DET STAVANGERSKE DAMSKIPSSELSKAP 2 3,55 NOR 3 THE LAW DEBENTURE TRUST 1 999 642 3,55 GBR 4 KAS DEPOSITORY TRUST 1 861 533 3,31 NLD 5 LARSEN OIL & GAS AS 1 82 148 3,2 NOR 6 SKAGEN VEKST 1 6 2,84 NOR 7 UNISTAR HOLDINGS INC 1 537 2,73 USA 8 EGD SHIPPING II AS 1 45 2,58 NOR 9 SLETTHEI AS LEIF INGE 1 271 333 2,26 NOR 1 NORDEA LIV NORGE AS 1 252 4 2,22 NOR TOTAL 21 337 198 37,92