Clean Energy for the Future Q2 2017 Financial Results 16 August - - PowerPoint PPT Presentation

▶
clean energy for the future
SMART_READER_LITE
LIVE PREVIEW

Clean Energy for the Future Q2 2017 Financial Results 16 August - - PowerPoint PPT Presentation

Jun 26, 2023 200 likes •412 views

Clean Energy for the Future Q2 2017 Financial Results 16 August 2017 Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like plans, expects, will,

slide-1
SLIDE 1

Q2 2017 –Financial Results

Clean Energy for the Future

16 August 2017

slide-2
SLIDE 2

Disclaimer

Forward-looking statements are based on certain assumptions and expectations of future events. The Company, its subsidiaries and its affiliates (the “Companies”) referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Companies, could thus differ materially from those projected in any such forward-looking statements. The Companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise. 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 about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward looking statements.

slide-3
SLIDE 3

Contents

1 Headlines 2 Financial Update 3 Country Performance 4 Summary

slide-4
SLIDE 4
  • 1. Headlines
slide-5
SLIDE 5

Highlights

5

Operations

  • H1 - $23m net profit on $222m revenue – up 77% and 25%
  • Higher profits due to increase in Company’s entitlement in

Kurdistan Region of Iraq ( KRI), higher oil prices, cost management, finance costs reduction

  • OPEX in H1 reduced by a further 7%
  • Positive free cash flow of $142m
  • Collected $198m in H1
  • Industry payment of $110m in Egypt – of which $60m is

earmarked for accounts payable and balance for further investments

  • Total trade receivables lowered to $900m
  • $337m of cash in hand at period end
  • Continued focus on short term cash preservation
  • Initiated Sukuk restructuring process. Injunctions obtained

from Sharjah, London and BVI courts

  • KRG quantum hearing in Q3 2017
  • NIOC Arbitration damages due before mid 2018
  • H1 Group production 6% higher at 67,550 boepd
  • H1 Egypt production up 13%
  • Successful completion of El Wastani gas plant shut-down
  • Second export of condensate sale (July)
  • Zora Gas Field well interventions uneconomic at current

gas price

Financials Liquidity Arbitration & Sukuk

slide-6
SLIDE 6
  • 2. Financial Update
slide-7
SLIDE 7

7

Financial Highlights

Gross Revenue (million USD) Gross Profit (million USD) EBITDA (million USD) Net Profit (million USD)

178 96 222 104

50 100 150 200 250

H1 Q2 2016 2017

89 42 122 53

50 100 150

H1 Q2 2016 2017

42 20 59 21

25 50 75

H1 Q2 2016 2017

13 7 23 12

10 20 30

H1 Q1 2016 2017

slide-8
SLIDE 8

8

Production (boepd) & Realized Prices ( USD/boe)

Average production H1 2017 Vs H1 2016 FY15 VS FY 16 Average production Q2 2017 Vs Q2 2016 Average Realized Prices (USD/boe)

63,700 34,850 25,800 2,300* 750 67,550 39,300 25,900 1,700 650

Group Egypt KRI UAE EBGDCO

H1 2016 H1 2017

66,650 36,550 26,100 3,250 750 65,400 37,650 25,400 1,650 700

Group Egypt KRI UAE EBGDCO

Q2 2016 Q2 2017 $31 $32 $38 $42 $38

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

Average Realized Prices (USD/boe)

$98 $86 $45 $33 $40

2013 2014 2015 2016 H1 2017

* Normalized

slide-9
SLIDE 9

9

CAPEX & OPEX

CAPEX (million USD) G&A / OPEX (million USD)

23 13 7 7 56 52 27 25

2015 2016 H1 2016 H1 2017

G&A OPEX

234 122 80 13

2015 2016 H1 2016 H1 2017

G&A / OPEX

  • Company continues to optimise costs
  • Operating cost reduced by a further 7%

CAPEX

  • Capex at $13m – minimal outlay
  • Continue to balance capex with available sources of cash
  • Planning to drill 3 wells in Egypt in Q4
slide-10
SLIDE 10

Cash Flow and Liquidity

Free Cash Flow (million USD)

  • Positive free cash flow due to improved

collections, higher revenues, lower capital expenditure

  • Collected $198m in H1 2017
  • $337m cash in hand end of H1 2017
  • Payment of Zora Loan ($60m)
  • Cash preservation– matching investments

against collections

  • Large part of collections, $60m, will be used

to pay down payables accumulated over last 18 months in Egypt

  • Sukuk reclassified from borrowings to

Capital received on issuance of Sukuk to reflect the Company’s legal positon

10

203 82 169 181 112 27 22

  • 30

142 2015 2016 H1 2017

Net Cash In (Operating) Net Cash Out (Capital expenditure) FCF

slide-11
SLIDE 11

11

Receivables & Collections

KRI Egypt

30 June 2017, total trade receivables is $900 million

Note: % calculated as collection divided by net revenue Note: % calculated as collection divided by net revenue Total Trade Receivable Total Trade Receivable 173 113 123 59 210 125 79 135 121% 111% 64% 229%

0% 50% 100% 150% 200% 250% 75 150 225 300

2014 2015 2016 H1 2017

Millions ($)

Billing Collection %

247 142 78 48 34 43 101 55 14% 30% 129% 115%

0% 20% 40% 60% 80% 100% 120% 140% 75 150 225 300

2014 2015 2016 H1 2017

Millions ($)

Billing Collection %

$233m $221m $265m $189m $746m $727m $713m $707m

slide-12
SLIDE 12
  • 3. Country Performance
slide-13
SLIDE 13
  • Successfully completed planned shut-

down of El Wastani plant in June

  • 5 days complete shutdown and 4 days

partial shut-down

  • Work conducted by WASCO
  • Excellent HSSE performance
  • Faraskur Compression nearing

completion

  • Sustain production at maximum plant

capacity – c. 40,000 boepd until year- end

  • Second shipment of international

condensate sold in July

Egypt: Strong production

13

South Abu El Naga

El Wastani

slide-14
SLIDE 14
  • North El Salhiya (Block 1)
  • 100% owned concession
  • Drilling to commence Q4 2017
  • 3 onshore wells: North El Basant,

ESAEN-1 and Bahy-2

  • North El Arish (Block 6)
  • Substantial and material prospect

inventory

  • Plans underway to drill the 1st
  • ffshore well in the block in 2018

Egypt: Growth potential

North El Arish

slide-15
SLIDE 15
  • Dana Gas share of production averaged

25,900 boepd in 1H of 2017

  • 302 MMscfd of natural gas
  • 13,063 bbl/d of condensate
  • 898 MT/d of LPG
  • Direct condensate sales to the KRG

through the Jambour pipeline

  • A planned shutdown is due in H2 2017 for

essential repair works

Kurdistan Region of Iraq

15

slide-16
SLIDE 16
  • Producing gas since February 2016
  • H1 2017 production was 1,700 boepd,

26% decline

  • Preliminary results of FDP indicates

further well intervention uneconomic at current gas prices

  • Result will need to be taken into

consideration during annual reserves audit

  • Any final decision on the plant to be

taken towards year-end

UAE

16

slide-17
SLIDE 17

Arbitration & Sukuk Update

Kurdistan Region of Iraq

  • Quantum hearing in September 2017
  • Continue to pursue money owed from 2 and 3

Partial Final Award

UAE Gas Project

  • Judgement expected before mid 2018

Sukuk

  • No offer currently on the table and DG is

pursuing litigation-driven outcomes

17

slide-18
SLIDE 18
  • 4. Summary
slide-19
SLIDE 19

Summary

Solid second quarter – operations, financials and cost efficiencies Strong collections from Egypt and KRI Potential for exciting medium-term opportunities in Egypt and development of world class assets in KRI Short-to-mid term priorities are maximizing production for minimal costs and balancing capex to collections Initiated Sukuk restructuring process Positive arbitration outcome in KRG and in NIOC arbitration judgement on damages claim expected by mid 2018 1 2 3 4 5 6

slide-20
SLIDE 20

Reach Us: Dana Gas PJSC

  • P. O. Box 2011, Sharjah, UAE

www.danagas.com E-mail : mohammed.mubaideen@danagas.com Direct : +971 6 519 4401