Dno Asa Class A · OSL:DNO
Dno Asa Class A — Q1 2002 Earnings Presentation
29 slides from Dno Asa Class A's earnings presentation, May 23, 2002
Slide 1: 1st Quarter 2002
1st Quarter 2002 DNO ASA 23 May 2002 1
Slide 2: Highlights 1st Quarter 2002 – Operations
Highlights 1st Quarter 2002 Operations • Achieved record production > 20.000 BOPD • Yemen production up 100 % due to Sharyoof • Maintaining good operating margins • Reduced direct unit production costs per barrel • Completed two exploration wells – no oil discovery 2
Slide 3: Group Oil Production Per Quarter
Group Oil Production Per Quarter 25000 BOPD 20639 20000 15158 15000 13174 12881 11722 10000 8638 5000 0 4th Q. 2000 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 1st Q. 2002 • Record production in Q 1 2002 • Meets production target set in 2000 3
Slide 4: Production by Business Area
Production by Business Area 25000 BOPD 20000 7516 Yemen 15000 3281 3429 3300 10000 2889 1344 4103 3383 6076 7680 Norway 1719 3944 5000 6198 5575 5642 4889 5801 5443 UK 0 4th Q. 2000 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 1st Q. 2002 • More diversified portfolio of producing assets 4
Slide 5: Highlights 1st Quarter 2002 – Financials
Highlights 1st Quarter 2002 Financials • Operating Revenue MNOK 368 • EBITDA MNOK 191 (MNOK 224) * • EBIT MNOK 93 (MNOK 126) * • Net Profit MNOK 24 • Total Assets MNOK 2500 • Equity Ratio 39 % * Before MNOK 33 expensed exploration costs 5
Slide 6: Highlights 1st Quarter 2002 – Other activities
Highlights 1st Quarter 2002 Other activities • Reduced shareholder base to ca. 11.000 • De-merger of Offshore & Services (currently on hold) 6
Slide 7: Overview Norway
Overview Norway Operator • PL 103B Jotun 7%* Exxon/Mobil • Glitne Field 10% Statoil • PL 203 15% Hydro • PL 148 30% A. Hess • PL 006C 10% A. Hess * 3.75% of this interest is pending the authorities approval and would imply operatorship in PL 103b 7
Slide 8: Production from Norway
Production from Norway 9000 BOPD 8000 7680 7000 6076 6000 5000 4103 3944 4000 3383 3000 2000 1719 1000 0 4th Q. 2000 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 1st Q. 2002 • Jotun production as projected. • Glitne exceeding forecast. 8
Slide 9: 2002 Outlook - Norway
2002 Outlook - Norway • Annual production 6.500 - 7.500 BOPD • Accelerated infill drilling on Jotun • Harvest production from Glitne • PUD on PL 203 • Evaluate new acquisitions 9
Slide 10: Overview Yemen
Overview Yemen • Block 32 Tasour (Operator) 41.0% • Block 53 Sharyoof 32.6% • Block 43 (Operator) 73.0% 10
Slide 11: License Interests - Yemen
License Interests - Yemen Block 32: Cost Oil = 41 % Profit Oil = 38.95 % Pre-tax share= 40.6 % through-out field-life Block 53: Cost Oil = 32.6 % Profit Oil = 24.45 % Pre-tax share= 30.7 % - reduced towards 24.45 % when past exploration & development costs are re-paid 11
Slide 12: Production from Yemen
Production from Yemen 8000 7516 BOPD 7000 6000 5000 4000 3429 3300 3281 2889 3000 2000 1344 1000 0 4th Q. 2000 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 1st Q. 2002 • Sharyoof Field on stream – 100 % production increase • Overall production exceeds expectations 12
Slide 13: 2002 Outlook - Yemen
2002 Outlook - Yemen • Annual net production 7.000 - 8.000 BOPD • Sharyoof plateau production of 25.000 BOPD during Q 2 • Harvest production from Tasour • Commence work in Block 43 13
Slide 14: Overview UK
Overview UK • Heather + West Heather (Operator) 100% • Solan / Stratmore 3.7% 14
Slide 15: Production from UK
Production from UK BOPD 7000 6198 6000 5801 5575 5642 5443 4889 5000 4000 3000 2000 1000 0 4th Q. 2000 1st Q. 2001 2nd Q. 2001 3rd Q. 2001 4th Q. 2001 1st Q. 2002 • Maintaining Q 1 2002 Heather production > 5.000 BOPD 15
Slide 16: 2002 Outlook - UK
2002 Outlook - UK • Annual production - 5.000 BOPD • Progress West Heather Development Plan • Bring in Partner on West Heather • Evaluate Thistle Field • Evaluate New Acquisitions 16
Slide 17: 2002 Outlook – DNO Group
2002 Outlook – DNO Group • Annual Production 18.500 – 20.500 Bopd • Increased production from Norway and Yemen • Progress plans for exploiting the undeveloped reserves • Explore for new acquisitions and investment opportunities 17
Slide 18: Key Financials 1st Quarter 2002
Key Financials 1st Quarter 2002 18
Slide 19: DNO Production vs. Brent Oil Price
bbl/d Ja 10000 15000 20000 25000 0 5000 n 01 Fe b M ar A pr M ay Ju n Ju A l ug Se pt O c N t ov D Ja ec n 02 Fe b M a A r pr DNO Production vs. Brent Oil Price il 0 5 10 15 20 25 30 Brent Oil USD 19
Slide 20: Income Statement 1Q 2002
Income Statement 1Q 2002 • Strong Increase in Revenues and EBITDA • NOK 33 mill. in Exploration Costs GROUP (NOK mill.) 1Q02 4Q01 3Q01 2Q01 1Q01 Yr 01 Yr 00 Operating Revenues 368 271 327 314 287 1.199 673 Operating Expenses, excl DD&A -178 -153 -144 -136 -130 -564 -429 EBITDA * 191 118 183 178 157
Slide 21: Quarterly Performance
Quarterly Performance 1Q01 2Q01 3Q01 4Q01 1Q02 Production- and Transp. Cost (NOK mill.) 99 110 116 117 112 Production- and Transp. Cost per bbl. (USD) 9,33 10,16 11,88 9,35 6,75 400 350 Operating Revenue 300 EBITDA 250 NOK mill 200 EBIT 150 100 50 0 1Q01 2Q01 3Q01 4Q01 1Q02 21
Slide 22: Business Unit Revenue and EBITDA in 1Q 2002
Business Unit Revenue and EBITDA in 1Q 2002 Revenue Per Business Unit EBITDA Per Business Unit NCS NCS UKCS UKCS INT INT Offshore & Offshore & Services Services 22
Slide 23: Operating Revenue Per Business Area
Operating Revenue Per Business Area Operating Revenue Per Quarter 400 368 327 350 314 287 300 271 250 NOK mill 200 150 100 50 0 1q01 2q01 3q01 4q01 1q02 NCS UKCS INT. IOT Group 23
Slide 24: EBITDA Per Business Area
EBITDA Per Business Area EBITDA Per Quarter 250 183 191 200 178 157 150 NOK mill 118 100 50 - 1q01 2q01 3q01 4q01 1q02 NCS UKCS INT. IOT Group 24
Slide 25: Balance Sheet 1Q 2002 - Assets
Balance Sheet 1Q 2002 - Assets • Further Investments in Norway and Yemen GROUP Assets Q1 2002 YE 2001 YE 2000 (NOK mill.) Fixed Assets 1.453 1.372 632 Financial Fixed Assets 475 485 495 Intangible Assets 148 150 128 Total Fixed Assets 2.076 2.006 1.254 Cash and Cash Equiv. 156 164 88 Other Current A
Slide 26: Balance Sheet 1Q 2002 – Shareholders’ Equity and Liabilities
Balance Sheet 1Q 2002 – Shareholders’ Equity and Liabilities • Increase in Liabilities due to Jotun Acquisition • Reduction of Short-Term Debt GROUP Shareholders' Equity and Liabilities Q1 2002 YE 2001 YE 2000 (NOK mill.) Shareholders´Equity 962 942 797 Interest-Bearing Long-Term Debt 738 651 158 Pr
Slide 27: Cash Flow 1Q 2002
Cash Flow 1Q 2002 • Working Capital Build-Up Reduces Op. Cash Flow • Lower Investments in 1Q02 (NOK mill.) 1Q02 4Q01 3Q01 2Q01 1Q01 Yr 01 Yr 00 Cash Flow from Operations -17 145 154 153 182 634 150 Cash Flow from Investing -66 -170 -371 -98 -244 -884 -460 Cash Flow from Financing 76 -33 -36 360 34 3
Slide 28: Key Figures 1Q 2002
Key Figures 1Q 2002 • Strengthening of EBITDA Based Figures GROUP 1Q02 4Q01 3Q01 2Q01 1Q01 Yr 01 Yr 00 Earnings per Share NOK 0,42 0,61 0,83 0,46 0,74 2,64 1,15 EBITDA per Share NOK 3,78 2,28 2,76 3,45 3,13 11,64 5,57 EBITDA Margin % 51,8 43,3 43,5 56,7 54,8 49,6 36,2 EBIT Margin % 25,2 7,5 38,3 39,
Slide 29: DNO Production vs. Brent Oil Price
bbl/d Ja 10000 15000 20000 25000 0 5000 n 01 Fe b M ar A pr M ay Ju n Ju A l ug Se pt O c N t ov D Ja ec n 02 Fe b M a A r pr DNO Production vs. Brent Oil Price il 0 5 10 15 20 25 30 Brent Oil USD 29