Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — Q1 2009 Earnings Presentation
28 slides from Dno Asa Class A's earnings presentation, 2009
Slide 1: Presentation First Quarter 2009
DNO International ASA Presentation First Quarter 2009
Slide 2: Agenda
Agenda Introduction & Operational Review • Ivar Brandvold, COO Financial Review • Haakon Sandborg, CFO Q&A First Quarter 2009 | 2
Slide 3: Making positive change
Making positive change Strategy • During the last years DNO’s strategy has been focused on low cost projects in high potential areas - avoiding long term capital commitments • This strategy made the company well prepared to adapt to recent oil price levels Shift in focus • Shift in focus to producti
Slide 4: Initiation of crude oil export from Kurdistan
Initiation of crude oil export from Kurdistan Start of export on 1 June, 2009 Marketed by SOMO Confirmation received • DNO is instructed by KRG to complete any outstanding work and undertake all necessary preparations • Ensure safe and smooth operation on the commencement date First Quarter 2009 | 4
Slide 5: Key events in the First Quarter 2009
Key events in the First Quarter 2009 • The tie-in of the Tawke pipeline to Iraq’s Northern pipeline system was completed by the end of first quarter 2009 • The Annual Statement of Reserves shows an increase to 163 mboe (P50) • Exploration drilling has temporarily been suspended in Yemen and Kurdistan
Slide 6: Operations
OPERATIONS
Slide 7: Business Overview
Business Overview Det norske oljeselskap ASA PL1067 Tawke Benenan (Hawler) Dohuk Sharyoof Tasour Nabrajah Bayoot Block 32, 43, 44, 47, 52, 53, 72 and 84 Block P Inhaminga First Quarter 2009 | 7
Slide 8: HSE summary
HSE summary DNO’s approach HSE performance trends 9 YTD Lost Time Incident Frequency YTD Vehicle Incident Frequency • Based on continuous improvement processes 8 YTD Total Recordable Incident Frequency aimed to create and maintain a good 7 environment for employees, contractors and for 6 the communi
Slide 9: 2009 Annual statement of reserves
2009 Annual statement of reserves Reserves & resources (1-7)* Classification 1-7* 200 200 24.3 180 13.1 180 -5,7 178.3 2.5 178.3 2.8 160 160 162.6 156,8 140 140 120 120 MBBL MBBL 100 100 80 80 60 60 40 40 20 20 0 0 31-12-07 Discoveries Revisions Production 31-12-08 Class 1-3 Class 4 Class 5 Class 7 C
Slide 10: Production profile
Production profile Average production (WI) sone, “Kurdistan “Yemen 20000 15000 10000 5000 IRAQ TORREY DNO’s Assets @ Predicng Assets @ re sus First Quarter 2009| 10
Slide 11: Kurdistan update
Kurdistan update Key events Q1 2009 Tawke test production continued in Q1l'09 Tawke tie-in to Northern pipeline system completed - ready for full scale production Diesel topping-plant commissioned KRG assignment of 3" party interests in Tawke, Dohuk and Erbil PSCs Benenan 3D processing completed Goi
Slide 12: Kurdistan – high E&P activity
Kurdistan – high E&P activity High activity Tawke PSC TURKEY • More than 30 international DNO companies present in Kurdistan SYRIA Dohuk PSC • High drilling and seismic activity IRAN Corporate activity Erbil PSC • Genel Enerji; new partner in Tawke and Dohuk PSCs Crude oil export • Commence on 1 Jun
Slide 13: Tie-in area completed
Tie-in area completed First Quarter 2009 | 13
Slide 14: Diesel topping-plant commissioned
Diesel topping-plant commissioned First Quarter 2009 | 14
Slide 15: Yemen update
Yemen update Key events Q1 2009 * Successful infill well Tasour #25 + Bayoot development on track, oil pipeline replaced tanker trucking + Raog #1 well in Block 53 confirmed oil in new Basement structure * Temporary stop in drilling operations Going forward + Complete Bayoot development + Evaluate t
Slide 16: Financials
FINANCIALS
Slide 17: Financial summary Q1 2009
Financial summary Q1 2009 Quarterly key financials Key points 450 Sales • Long-term value addition through low-cost 400 reserve growth and field development Exploration • Drop in cash flow and profits due to lower oil EBITDA 350 prices and lower production 300 • Conservative investment plan applied in fi
Slide 18: Financial summary
Financial summary Sales EBITDAX and EBITDA Netback 450 350 250 EBITDAX 400 EBITDA 300 200 350 250 300 150 200 250 NOK million NOK million NOK million 200 150 100 150 100 50 100 50 50 0 0 0 -50 -50 -50 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 First Qua
Slide 19: Condensed income statement
Condensed income statement NOK Million Q1 2009 Q4 2008 Q1 2008 2008 Sales 183.8 217.3 421.9 1,376.2 Cost of goods sold -190.2 -198.7 -212.8 -745.5 Gross profit -6.4 18.6 209.1 630.7 Dry well cost expensed -8.9 -73,5 -4.1 -158,3 Seismic and other exploration expensed -49.3 -39,3 -30.0 -198,6 Other -12
Slide 20: Net finance
Net finance NOK Million Q1 2009 Q4 2008 Q1 2008 2008 Other financial income 23.8 1.2 - 13.9 Impairment/reversal of impairment of financial assets 229.9 -738.4 - -765.4 Net interest cost -32.4 -52.1 -31.6 -158.3 Exchange rate gain (loss), unrealized items -7.9 65.4 1.4 114.1 Other financial items -7.1 10
Slide 21: Exploration expenditure
Exploration expenditure Exploration expensed Q1 2009 exploration expenses 140 Yemen • Reduced exploration activity, maturing of Kurdistan prospects for later drilling 120 Africa • NOK 58 million in expensed exploration in the 100 quarter, including NOK 29 million in Yemen seismic survey 80 NOK milli
Slide 22: Capital expenditure
Capital expenditure CAPEX per segment Q1 2009 CAPEX 400 Yemen • Overall investment levels significantly down 350 Kurdistan from previous quarters Africa • NOK 77 million in Capex in the quarter: 300 • NOK 50 million on pipeline tie-in, diesel- topping plant and other development on the 250 Tawke field
Slide 23: Netback analysis
NOK million -100 100 250 150 50 0 -50 200 Netback Q1'08 Production Price Q1 2008 – Q1 2009 FX Exploration Netback analysis Other OPEX Tax Netback Q1'09 NOK million -40 -10 -20 0 -30 -50 -60 -70 Netback Q4'08 Production Price Q4 2008 – Q1 2009 FX Exploration Other OPEX Tax Netback Q1'09 First Quarter
Slide 24: Sources and Uses
Sources and Uses Q1 2008 Q1 2009 Cash flow coverage 300 300 9.00 Netback (before exploration)/Exploration Netback (before exploration)/Exploration Exploration 8.00 and CAPEX Other 7.78 250 250 Sale of financial assets 7.00 CAPEX Other 200 200 6.00 Cash flow from Exploration operations before exploratio
Slide 25: Capital structure
Capital structure Assets Equity and liabilities Debt per barrel 2P reserves** 6000 Other non-current assets 6000 Shareholders equity 3 Other current assets Non-current liabilities Financial assets Current liabilities 2.62 Cash and mm funds 5000 5000 2.5 Cash: NOK 143 million 1.97 4000 4000 2 Financi
Slide 26: Summary and closing remarks
Summary and closing remarks • Through successful technical completion and pipeline tie-in, the Tawke field is ready for increased production from a strong proved and developed reserve base • Preparations for commencement of crude oil export from Tawke on 1 June • First quarter results affected by low
Slide 27: Disclaimer
DISCLAIMER This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections abo
Slide 28: Welcome back
SECOND QUARTER 2009: 19 AUGUST 2009 WELCOME BACK DNO International ASA, Stranden 1, Aker Brygge, 0250 Oslo, NORWAY, Phone: (+47) 23 23 84 80, Fax: (+47) 23 23 84 81