Q Presentation Oslo 15 February 2008 The Norwegian Shipping Club

Transcription

1 Q Presentation Oslo 15 February 2008 The Norwegian Shipping Club Kaare M. Gisvold, Chairman of the Board Erik Haugane, CEO Paul Hjelm-Hansen, CFO

2 Disclaimer This presentation may contain certain forward-looking statements, including estimates, predictions and projections with respect to anticipated future performance of the Det norske oljeselskap ASA (the Company ) and as to the markets for the Company s products and services. These forward-looking statements reflect current views with respect to future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. The Company makes no representation as to the accuracy of forward-looking statements contained herein. The information and opinions contained in this presentation are subject to change without notice and the Company assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein. This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated, and any other person should not act or rely on this presentation or any of its content. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities issued by the Company or any of its subsidiaries or affiliated companies. 2

3 Highlights Q The combination of Pertra and NOIL (previously DNO s Norwegian operations) in November creates Norway s second-largest operating company At the turn of the year, Det norske owned 97.3% of the shares in NOIL. The remaining shareholders have now been bought out, resulting in Det norske currently holding 100% of the shares in NOIL The company participated in two oil discoveries in 2007; Ragnarrock (operated by Statoil) and Storskrymten (operated by Det norske). The borrowing limit in DnB NOR for exploration expenditures was increased to NOK 1.5 billion The company produced an average of 1,941 barrels of oil equivalents from the fields Varg, Glitne, and Enoch The APA 2007 awards corroborate our strength and ensure continued growth 3

4 Consolidated Key Figures * MNOK Q Q Operating revenues Profit/(loss) before taxes (116.7) (3.5) Exploration costs No. of licenses P 50 Reserves 7.9 MBO 7.0 MBO P 50 Reserves and contingent resources 130 MBO 40 MBO Total risked reserves, contingent resources, and potential resources 579 MBO 234 MBO 4 * NOIL included as of 13 November 2007

5 Financial Key Figures MNOK Q Q Operating revenues Profit/(loss) before taxes (116.7) (33.8) Exploration costs Investments Cash flow before financing (176.4) 5

6 Summary Q4 Financial Position Equity MNOK 3,542 Equity ratio 55% Liabilities MNOK 129 interest-bearing debt (exploration facility) Current assets Cash, cash equivalents and financial investments MNOK 590 Calculated tax receivable MNOK 618 (December 2008) 6

7 Det norske oljeselskap ASA The combination has created a robust Norwegian participant Det norske Stavanger Oslo Trondheim Harstad 5 employees 25 employees 50 employees 11 employees per februar 2008

8 Company Organization CEO Business Dev. CFO G&G Process Executive VP HSE Exploration Reserve & Area Development Technology & Development Production & Operation Drilling & Well 8

9 645,000 barrels were produced in 2007 from three fields 610,000 barrels expected in 2008 Yme will commence production next year and is expected to contribute 4000 barrels/day Det norske sells all oil on the spot market

10 APA 2007 Awarded 8 February 2008 Det norske emerged as the definite winner of this important licensing round Det norske was awarded 12 new licenses with an average ownership of 48% Det norske was awarded 7 operatorships There are 11 drilling commitments in this Round, whereof three in licenses operated by Det norske In addition, Det norske was awarded additional acreage to PL 229 and (in November) additional acreage to PL

11 APA 2007 Awards All Companies Prod. license Additional acreage to existing licenses not included 11

12 APA 2007 Awards to Norwegian Companies Prod. License Awarded license interests to Norwegian oil companies in APA (Additional acreage for older licenses not included) 12

13 We are Awarded Exploration Acreage and We Drill Source: Operatorships 2008 Exploration wells 2007

14 Drilling Program 2008 Prospect License Operator Expected recoverable volumes in million barrels o.e. Expected spudding Det norske s share Draupne PL 001B Det norske 50 MBO February 35% Struten PL 383 Det norske 120 MBO November 100% Eitri/Phi PL 27B Det norske/ Exxon 50 MBO August 25% Fongen PL 380 Det norske 45 MBO December 100% Goliat N PL 229 ENI 200 MBO November 15% Trow PL 369 Talisman 140 MBO July 20% Freke PL 29B Exxon 90 MBO August 20% Grevling PL 038 Talisman 50 MBO June 5% 14 Lilleulv PL038 Talisman 11 MBO August 5%

15 Drilling Program

16 Reserves and Resources As of February M M B B L S 16

17 Expected Rise in Production - Yme, Frøy, & Goliat R E S E R V E S P R O D U C T I O N

18 Expected Growth in Reserves Expected growth Historical development

19 46 Licenses, 24 Operatorships 3 producing fields yielding ~2,000 barrels/day Varg (5%), Glitne (10%), and Enoch (2%) 8 discoveries and 3 fields under development Yme (10%), Frøy (50%), and Goliat (15%) Expected production approximately 30,000 barrels/day in 2012 Considerable reserves and resources 130 million barrels of oil equivalents proven Discoveries last six months Ragnarrock (30%) proven million barrels Storskrymten (45% and operator) proven million barrels Processing of discoveries and drilling continues 13 exploration wells as operator and 7 wells in partner-operated licenses will be drilled in 2008 og The goal is an additional 150 million barrels of oil as proves resources. The next well is Draupne, to be spudded in February 2008 The first APA 2007 licenses to be drilled in 2009

20 Det Position in the Frøy Area is Strengthened Det norske holds license interests in 4 licenses in the Frøy area Det norske operates 3 licenses in the Frøy area The production facility on Frøy is capable of producing several times more the recoverable volumes on the Frøy Field The area may contain million barrels of recoverable oil

21 Goliat the Largest Field in the Portfolio Partners: Eni 65%, Operator StatoilHydro 20% Det norske 15% FPSO Concept selection in February PDO toward end of 2008 New exploration well in Q (Goliat North) Development solution will be selected based on: Technical flexibility and robustness Environmental impact Economics Local creation of value Subsea System For this case also SEMO (Concrete Floater with Storage) is being evaluated Semi FSU Subsea System

22 Draupne Our First Exploration Well in 2008 Block: 16/1 Licensees: Det norske (O, 35 %), StatoilHydro (50 %), PA Resources (15%) (PA will cover Det norske s drilling expenses) Water depth: 111 m Spudding: February 2008 Rig: Bredford Dolphin Discoveries in license: West Cable (2900m, M. Jurassic Hugin FM): Mboe Prospect volume : Draupne (2225 m, M. Jurassic - Heimdal, Hugin/Sleipned FM): Mboe Date: Resp: BAB

23 APA 2007 Awards - Frusalen & Trolltind Frusalen 6 GSm 3 Trolltind 4 GSm 3 Haltenbanken 23 New seismic in relinquished acreage

24 Prepared for Growth Det norske is prepared for continued growth Det norske benefits from the most extensive exploration and development environment in Norway, second only to StatoilHydro We have stated ambitions of doubling the size of the current organization of more than 90 within two years This will take place in Harstad, Trondheim, Stavanger, and Oslo Participation in 20 exploration wells in Doubling of proven resources within two years Production will be tripled in 2009 An additional triplication of production in 2012 Capacity for field developments and operation A supplement to StatoilHydro on the Norwegian shelf 24 Exploration strategy, exploration capacity, development solutions Competition for suppliers Academia, research, and recruiting

25 A Critical Mass of Operatorships Gives Room to Maneuver 25 N O. O F O P E R A T O R S H I P S

26 Upcoming Events 3 March: Launch date of Det norske s logo and graphical profile Primo March: Mid-March: Plan for Development and Operation (PDO) for the Frøy Field First supplier contracts for the Frøy Field Ultimo March: Results of the exploration well on Draupne May: Drilling of new production wells in the Varg Field June: Drilling of exploration well on Lilleulv, adjacent to Varg (PL 38) PDO approval for Frøy June: Drilling of the Freke prospect (Esso) 26

27 Attachments

28 20 Largest Shareholders in Det norske AKSJONÆR/DEPOTBANK BEHOLDNING % DNO ASA ,7 % JPMORGAN CHASE BANK ,9 % BANK OF NEW YORK, BRUSSELS BRANCH ,1 % BANK OF NEW YORK, BRUSSELS BRANCH ,6 % DRESDNER BANK AG LONDON BRANCH ,2 % VERDIPAPIRFONDET KLP AKSJENORGE ,2 % KØRVEN AS ,1 % BEAR STEARNS SECURITIES CORP ,8 % H.L.MANAGEMENT AND CONSULTANT( ,7 % VERDIPAPIRFOND ODIN NORGE ,7 % GOLDMAN SACHS INT. - EQUITY ,6 % UBS AG, LONDON BRANCH ,4 % SPAREBANKEN MIDT-NORGE INVEST AS ,4 % CREDIT SUISSE SECURITIES ,3 % SJÆKERHATTEN AS ,2 % VILJE 2M AS ,2 % OLEUM AS ,2 % VINN INVEST AS ,1 % BANK OF NEW YORK, BRUSSELS BRANCH ,0 % CREDIT AGRICOLE INVESTOR SERVICES ,0 % 28 Total no. of shares: 64,925,020; total no. of shareholders: 2,188

29 Income Statements * Det norske oljeselskap - Consolidated Income Statement 4th quarter IFRS IFRS IFRS IFRS (All figures in NOK 1000) Petroleum revenues Other operating revenues TOTAL OPERATING REVENUES Exploration expenses Change in inventories Production costs Payroll and payroll-related expenses Depreciation and amortsation expenses Other operating costs TOTAL OPERATING EXPENSES OPERATING PROFIT/(LOSS) Interest income Other financial income Interest expenses Other financial expenses NET FINANCIAL ITEMS INCOME /(LOSS) BEFORE TAXES Taxes (+)/tax income (-) on ordinary income/(loss) NET INCOME /(LOSS) Minority's share of net income (loss) Majority's share of net income (loss) Weighted average no. of shares outstanding Weighted average no. of shares fully diluted Earnings/(loss) after taxes per share (adjusted for split) (0,90) 0,01 (2,01) (1,64) Earnings/(loss) after taxes per share (adjusted for split) fully diluted (0,90) 0,01 (2,01) (1,64) * The Financial Statements have been prepared in accordance with IFRS

30 Balance Sheet Consolidated Balance Sheet IFRS IFRS Intangible assets Goodwill Capitalized exploration expenditures Other intangible assets Tangible fixed assets Property, plant, and equipment TOTAL Current assets FIXED ASSETS Inventories Inventories Receivables Trade receivables Other receivables Calculated tax receivables Cash and cash equivalents Cash and cash equivalents TOTAL CURRENT ASSETS TOTAL ASSETS Paid-in capital Share capital Share premium Minority interests TOTAL EQUITY Provisions Pension obligations Deferred taxes Abandonment provision Deferred revenues TOTAL PROVISIONS Current liabilities Short-term loan Trade creditors Taxes withheld and public duties payable Other current liabilities TOTAL CURRENT LIABILITIES TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES

31 Cash Flow Statement Consolidated Cash Flow statement Cash flow from operating activities Income/(loss) before taxes Tax refund Depreciation and amortisation expenses Changes in plugging and abandonment liabilities Discount shares to employees Changes in inventories, accounts payable and receivable Changes in net current capital and in other current balance sheet items NET CASH FLOW FROM OPERATING ACTIVITIES Cash flow from investment activities Purchase of property, plant and equipment Purchase of ingangible assets NET CASH FLOW FROM INVESTMENT ACTIVITIES Cash flow from financing activities Paid-in share capital/capital increase Expenditure related to acquisition of companies Payment of loan Short-term loan Bank overdraft NET CASH FLOW FROM FINANCING ACTIVITIES Net change in cash and cash equivalents Cash and cash equivalents at start of period Cash and cash equivalents in acquired company at time of acquisition CASH AND CASH EQUIVALENTS AT END OF PERIOD Specification of cash and cash equivalents at end of period Bank deposits, etc Restricted bank deposits Other financial investments Total cash and cash equivalents at end of period