Dno Asa Class A · OSL:DNO
Dno Asa Class A — DNO International — Q4 2012 Earnings Presentation
16 slides from Dno Asa Class A's earnings presentation, Feb 12, 2013
Slide 1: DNO International Q4 2012 Presentation
DNO International Q4 2012 Presentation 12 February 2013
Slide 2: 2012 Highlights
2012 Highlights • Net profit of more than NOK 1 billion on operating revenues of NOK 2.8 billion – all time DNO high • Company Working Interest production steady at 38,354 boepd, while gross operated production capacity climbed to 140,000 boepd • Doubled exploration & development spending to record
Slide 3: Net profit
Net profit 1,200 1,000 • Increased profitability in 800 2011 reflects higher production, Tawke 600 export receipts and sale NOK million 400 of financial assets 200 • Improvements in 2012 0 driven by strong -200 contribution from Oman -400 production 2010 2011 2012 Q4 2012 Presentation 3
Slide 4: Building production capacity
Building production capacity 160,000 Gross annual production Gross yearend capacity • Active investment 140,000 program across 120,000 portfolio 100,000 • Tawke production capacity now 100,000 boepd 80,000 bopd and growing 60,000 • Confident Kurdistan 40,000 oil production will reach markets 20,000
Slide 5: Exploration & development spending
Exploration & development spending 1,400 • Stepped up spending 1,200 in Kurdistan, funded by export payments 1,000 and local sales NOK million 800 • Drilled two wells in 600 Oman in 2012, more than doubling offshore 400 oil and gas production 200 • Yemen exploration 0 back on track 2010 2011 2012 Q4
Slide 6: Significant increase in 2P (CWI) reserves at low cost
Significant increase in 2P (CWI) reserves at low cost 600 • 2P reserves increased 500 381 million boe in past three years 400 • Total finding & development Million boe costs of USD 1.5 per boe 300 on three year rolling average 200 • 2012 Annual Statement of Reserves will be released 100 in April 0 2
Slide 7: 2012 Quarterly CWI production (boepd)
2012 Quarterly CWI production (boepd) 50,000 45,000 40,000 10,983 3,745 6,213 35,000 Oman Kurdistan boepd 30,000 2,003 Yemen 25,000 33,851 20,000 31,734 30,914 15,000 17,279 10,000 5,000 4,169 3,952 3,948 4,501 0 Q1 - Total 42,116 Q2 - Total 23,234 Q3 - Total 41,544 Q4 - Total 46,398 Q4 2012 Present
Slide 8: Diversified production drives Q4 results
Diversified production drives Q4 results Production (CWI) - boepd Gross Profit – NOK million Oman 10 983 Oman 287 Kurdistan Yemen 30 914 4 501 Yemen 52 Kurdistan 737 Q4 2012 Presentation 8
Slide 9: Growing DNO
Growing DNO Development Exploration 2000 2013 Program 1800 1600 Development: NOK 1,400 million 1400 Exploration: NOK 350 million NOK million 1200 1000 800 Expenditures expected to be funded from operating cash flow 600 400 200 0 2010 2011 2012 2013E Q4 2012 Presentation 9
Slide 10: Delivering on our strategy
Delivering on our strategy 2014: Doubling of operated 2013: production capacity Continue organic Establish presence in 2012: growth through new MENA countries the drill bit ✔ Completed RAK Further 2011: merger diversification ✔ Strengthen and ✔ Larger and more diversified MENA through bolt-on refocu
Slide 11: Financial Summary
Financial Summary DNO International Q4 2012 Presentation 12 February 2013
Slide 12: Record revenues and profits
Record revenues and profits Q4 2012 Q3 2012 Q4 2011 Full year Full year Q4 Highlights 2012 2011 Sales 1,434.3 540.6 904.6 2,841.8 2,070.2 • USD 116 million -346.5 Cost of goods sold -373.5 -539.0 -1,212.7 -1,165.7 in export revenues Expensed exploration -19.5 -25.0 -7.6 -78.0 -103.1 from Tawke Admin
Slide 13: Growth funded by cash flow
Growth funded by cash flow Growth in revenue and cash flow Increased investments Investments funded from cash flow Revenue Netback Capex & exploration Netback/Investments 3,200 1,400 3.0 2,842 1,225 2,800 2.5 1,200 2.5 2,400 1,000 2,070 2.0 1.8 2,000 1,900 800 1.6 1,600 1.5 1,322 1,252 600 525 1,200
Slide 14: Solid financial position
Solid financial position Cash position Net interest bearing debt Equity ratio 1,645 1,600 500 60 % 1,508 428 55 % 1,385 1,400 400 50 % 300 43 % 1,200 39 % 200 40 % 1,000 100 800 30 % 0 -3 600 -100 20 % 400 -200 NOK million NOK million -183 10 % 200 Percent -300 0 -400 0% 2010 2011 2012 2010 2011 201
Slide 15: Q&A
Q&A DNO International Q4 2012 Presentation 12 February 2013
Slide 16: Important Notice
IMPORTANT NOTICE The information contained in this results presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions co