Dana Gas PJSC · ADX:DANA

Dana Gas PJSC — Q3 2016 Earnings Presentation

17 slides from Dana Gas PJSC's earnings presentation, Nov 9, 2016

  1. Slide 1: Clean Energy For the Future

    Clean Energy For the Future Q3 2016 – Financial Results 9 November 2016 1

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward‐looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo

  3. Slide 3: Content

    Content  Headlines  Financial Update  Country Performance  Summary 3

  4. Slide 4: Key Takeaway

    Key Takeaway > Good results in challenging market conditions > Increased Q3 revenues generated by enhanced production Financials > Net profit benefited from accrued interest in KRG > G&A realized cost savings ‐ $1m (Q3) and $6m (9M) > Prudent use of capital > Balance sheet – $322m cash Liquidity > T

  5. Slide 5: Financial Highlights

    Financial Highlights Gross Revenue ( million USD) EBITDA ( million USD) 324 160 139 141 300 280 120 200 80 53 93 102 100 38 40 0 0 Q3 9M Q3 9M 2015 2016 2015 2016 Gross Profit ( million USD) Net Profit ( million USD) 120 30 26 97 20 80 63 13 10 10 40 23 21 0 Q3 9M 0 Q3 9M ‐10 ‐9 2015 2016 2015 2016

  6. Slide 6: Production (boepd)

    Production (boepd) Q3 15 VS Q3 16 Q2 16 VS Q3 16 69,400 69,400 66,650 60,800 Q3 2015 Q2 2016 Q3 2016 Q3 2016 40,000 40,000 36,550 32,144 28,000 26,100 26,100 26,100 2,560 3,250 2,560 0 Group Egypt KRI UAE Group Egypt KRI UAE 9M 15 VS 9M 16 Average Realized Prices (USD/boe) 65,100 65,600 $41 $39 9M 2

  7. Slide 7: OPEX and CAPEX

    OPEX and CAPEX G&A and OPEX (million USD) G&A  Reduced operating expense and G&A OPEX > G&A 37% lower (9M) > OPEX 9% lower (9M) 55 56 44  CAPEX – lower requirements in H2 2016 40 28 23 16 10  GPEA – all annual investment commitments largely fulfilled 2014 2015 9M ‐ 2015 9M ‐ 2016 CAPEX (million U

  8. Slide 8: Liquidity and Debt

    Liquidity and Debt Gross Debt & Cash Balance (million USD) 884 811  Decline in total debt 777 542  Preservation of cash – matching 489 414 investments against collections 470 322 235  Negative free cash flow due to Zora capex payments 2014 2015 9M 2016 Gross Debt Net Debt Cash and Cash equivalent

  9. Slide 9: Receivables and Collections

    Receivables and Collections 30 September 2016, total trade receivables is $968 million Egypt Kurdistan 300 Billing 140% 300 Billing 140% Collection Collection 121% % 121% % 120% 120% 225 111% 225 100% 100% Millions ($) Millions ($) 77% 80% 80% 150 150 60% 60% 40% 40% 75 75 30% 20% 14% 20% 173 210 11

  10. Slide 10: Egypt: strength in numbers and progress

    Egypt: strength in numbers and progress El  Breaks 40,000 boepd in Q3, a 24% increase in Wastani Production this year. El‐Wastani plant producing at capacity for the first time South Abu El Naga  Continue to deliver to the GPEA with 19 wells successfully drilled  5 exploration, 9 development and

  11. Slide 11: Egypt: strengths in numbers and progress

    Egypt: strengths in numbers and progress  BP‐operated Mocha‐1 (Block 3) discovered Mocha‐1 wet‐gas in the Messinian M90 formation during drilling > Plans being made to drill up‐dip producer well to bring on‐stream by end Q1 2017 > Primary target is the multi TCF Oligocene reservoir at a depth of 6,

  12. Slide 12: Kurdistan

    Kurdistan  DG share of production averaged 26,100 boepd during Q3 2016. > 308 (Q3 2015: 300) MMscfd of natural gas > 13,085 (Q3 2015: 12,627) bbl/d of condensate > 861 (Q3 2015: 633) MT/d of LPG  Operation have remained steady Chemchemal throughout the quarter. Khor Mor 12

  13. Slide 13: UAE

    UAE  Producing gas since February 2016.  Production rate of Sharjah‐2 well has declined, currently producing 2,560 boepd  Q4 workover deferred  Further analysis to optimize the well intervention program and to determine what additional work may be required to have an impact on the flow rates 13

  14. Slide 14: Arbitration Update

    Arbitration Update  Kurdistan Region of Iraq > Sept 2016 LCIA heard remaining contractual issues > In limine issues concerning Consortium damage claims and KRG counterclaims > Minor damages and losses claims by the Claimants > Quantum hearing expected in H1 2017 > KRG withdrew claims to challenge S

  15. Slide 15: Summary

    Summary ‘Mixed’ bag – further savings, improved production but lack of collections and oil price continues to weigh on results Exciting opportunities in Egypt in 2017 Strong production – further supply to come on‐stream in 2017 Mid‐term priorities – managing for margin and review capex in light of r

  16. Slide 16: Reach Us: Dana Gas PJSC

    Reach Us: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E‐mail : [email protected] Direct : +971 6 519 4401 16

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