2000 interim presentation - v1-1 - premier oil · 2016. 6. 14. · 2000 interim results...
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20002000 IINTERIMNTERIM RRESULTSESULTS PPRESENTATIONRESENTATION13th September 2000
Version 1.1
2000 Interim Results Presentation
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Introduction and Overview
Results
Operations
Asia Gas Markets
Summary
PRESENTATION
Charles Jamieson
John van der Welle
Richard Liddell
Steve Lowden
Charles Jamieson
2000 Interim Results Presentation
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Delivery of major gas developments
2000 HIGHLIGHTS
- Yetagun on-stream early- WNG on track for early gas
Commercialise existing discoveries - Kyle EWT out-performing/Curlewdevelopment option
- Chestnut/Brovig EWT- Bhit GSA approved- Zamzama EWT go-ahead
Exploration programme restarted - 4 discoveries in Indonesia
Improved finances - return to profitability, refinanced debt
Strengthened management - new Operations Director
OBJECTIVE OUTCOME
2000 Interim Results Presentation
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RESULTS
2000 Interim Results Presentation
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1999
2000 INTERIM RESULTS SUMMARY
2000
Realised oil prices ($/bbl) (post hedging)Production volume (mboepd)
TurnoverOperating profit / (loss) before exceptionalsProfit / (loss) after taxOperating cashflow (after interest and tax)Capital expenditure (including JVs)Net debt (including JVs)Gearing (including JVs)
11.8)29.2)
39)(3)
(13)(9)96)
399)205)
21.425.9
541834
69359 111
£m£m
% %
2000 Interim Results Presentation
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PROFIT & LOSS ACCOUNT
Production (mboepd)Realised oil price ($/bbl)
Turnoverless: share of JVs turnoverGroup turnoverOperating costsAmortisationOtherGross profit Administration costsOperating profit / (loss)Operating profit in JVsTotal operating profit / (loss)Profit on disposalNet interestExchange gainProfit / (loss) before taxTaxationProfit / (loss) after taxEarnings per share - basic and diluted (pence)
25.9)21.4)
54)(5)49)(9)
(17)(3)20)(4)16)2)
18)-)
(8)3)
13)(10)
3)0.2)
199929.2)11.8)
39)(3)36)(14)(18)(3)1)(5)(4)1)(3)1)(7)1)(8)(4)
(13)(1.2)
£m
2000
Hedging loss - £11.4m
Underlying unit opex at £3.80/boe –impact ofKyle EWT, field declines
Underlying DDA unchanged at £3.59/boe
Cessation of interestcapitalisation on Yetagun
Production down 11%due to natural field declines,Fergus shutdown, offset byKyle EWT and Yetagun
Increased PRT onWytch Farm due to higher prices and overseas taxes £2.6m
£m
2000 Interim Results Presentation
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CASHFLOW
Net cashflow from operationsNet interestTaxationOperating cashflow (after interest and tax)Capital expenditureYetagun financingInvestment in JVNet cashflowRepayment of advance from JV partnerExchange/otherMovement in net debtOpening net debtClosing net debt
25)(11)(10)
4)(61)
-)(3)
(60)-)
(15)(75)
(171)(246)
3)(11)(1)(9)
(76)85)
-)-)
(16)(14)(30)
(289)(319)
1999£m
Higher taxes onhigher profits
Build-up capitalexpenditure
Increase in line withhigher net revenues
Exploration
Fields
Excl JV£m6
55
61
JV£m4
4
8
Total£m10
59
69
2000£m
Note: excludes JVs
2000 Interim Results Presentation
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BALANCE SHEET
2000(incl. JVs)
£m
CashDebtNet debtShareholders’ fundsGearing ratio
103462359322111
2000(excl. JVs)
£m
100346246NANA% %
2000 Interim Results Presentation
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Drawn at30.06.00
£m
COMMITTED DEBT
Facilities£m
Bank credit $250m (final maturity 2003)Loan notes $280m (final maturity 2008)Convertible capital bond (maturity 2005)
Yetagun financing $158m - $155m drawn (maturity 2008)Availability as at 30.06.00Accrued Yetagun interestTotalCashNet debt (incl. JVs)
13218628
34610445012
462103359
16618628
380105485
2000 Interim Results Presentation
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2001 2002 2004
140
100
80
40
20
0
(£ m
illio
n)
60
Crossover in sight –falling capex and rising cashflow2000 2003
CAPITAL EXPENDITURE BY COUNTRY
MyanmarPakistanIndonesiaUK
120
2000 Interim Results Presentation
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OPERATIONS
2000 Interim Results Presentation
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2001 2002 2004
80,000
40,000
20,000
0
Prod
uctio
n (B
OEP
D)
60,000
2000 2003
PRODUCTION BY COUNTRY
Note: Yetagun volumes are set at contracted level including Take or Pay
MyanmarPakistanIndonesiaUK
2000 Interim Results Presentation
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MYANMAR –YETAGUNDELIVERING OPERATIONS PERFORMANCE
Production commenced 7th May 2000
Project delivered on time, on budget
Well managed transition into production operations
Focus on operations performance
Phase II engineering contracts to be awardedin October
2000 Interim Results Presentation
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Dec 99
5000
4000
3500
500
0
MW 2500
YETAGUN NEAR TERM DEMAND LOGISTICSRatchaburi Power Plant Set for Completion 2001
4500
3000
2000
1500
1000
Mar 00
Jun 00
Sep 00
Dec 00
Jun 01
Sep 01
Dec 01
Mar 02
Jun 02
Dec 02
Sep 02
Mar 01
Ratchaburi Generation CapacityCCGTsThermal 2Thermal 1TRI EnergySCGTs
Plant Efficiency SCGTs –30%; Tri Energy / EGAT CCGTs –40%; Thermal –40%
2000 Interim Results Presentation
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INDONESIAN - ANOA Gas Export (AGX)DELIVERING OPERATIONS PERFORMANCE
Premier’s third platform success in 3 years
Top quartile development
Impressive cycle time and cost
Jacket installed - deck and other facilitiesahead of schedule
Concurrent focus on delivering operations performance
S O N D J F M A M J J A S O N D J F M A M J J A
E P C I C O N T R A C T A W A R D EARLY GAS AVAIL . C O N T R A C T
K E Y M I L E S T O N E SINSTALL JACKET C O M M I S S I O N I N G
& P IPEL INE GAS AVAIL .
E P C I E X E C U T I O NEngineer ing & Procurement
Jacket & Pi les Fabr icat ion
Topsides Fabr icat ion
Transport & Insta l l AGX Jacket & SA-21 P/L ine
Transpor t & Insta l l AGX Deck & Compr. Module
Hook-Up & Commiss ion AGX Componen ts
I N T E R F A C E S S / DAnoa Plat form Modi f icat ions
Dr i l l ing Programme (SA-21 & Workovers)
Ear ly Gas Product ion Sk id
WNTS In ter faces P/LINE REPAIRS/DRYING
M O N S O O N S E A S O N
Descript ion
RISER TIE-IN
1999 2000 2001
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
1 0 0
O N D J F M A M J2000
J A S O N D J F M2001
A M J
PERC
ENTA
GE
Plan Cum
A c t C u m
2000 Interim Results Presentation
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Anoa Platform
KF Platform
Jemaja
Mubur
BintanBatam
MAL
AYSIA
INDO
NESIA
GA
S LI
NE
TRU
NKL
INE
INDONESIA –WEST NATUNA GAS PIPELINEDELIVERING OPERATIONS PERFORMANCE
656 km pipeline installed, on budget,7 months ahead of schedule
Premier - driven plan for early gas sales
Significant acceleration secures earlyproduction
- December 2000
SINGAPORE
Routine weld repairs in progress
2000 Interim Results Presentation
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UNITED KINGDOM - KYLEDELIVERING OPERATIONS PERFORMANCE
Ranger operator - Premier drive
Early production commenced May 2000- Production to PGS Petrojarl FPSO
400,000 Premier barrels delivered to date
Discussions in progress with Shell/Maersk- Full field development via Curlew- Oil production via shuttle tanker- Gas production via St. Fergus terminal
Preparing to test second well
SHUTTLE TANKER
PETROJARL-1
Well 29/2c-12Z
South KyleDrill Centre
Valve ProtectionFrame
North KyleDrill Centre
Tee ProtectionFrame
Well 29/2c-TZ
Control UmbilicalT Connection
8” Production Pipelineand Control Umbilical
APPROXIMATELY 12Km TO BANFF FPSO
Risers8” Production line Bundled
Electro/HydraulicControls Umbilical
Riser Bases
2000 Interim Results Presentation
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UNITED KINGDOM - CHESTNUTDELIVERING OPERATIONS PERFORMANCE
Premier innovative development arrangement
Brovig production services –FPSO Crystal Ocean
Shared revenue agreement
Early production March 2001- Only 6 months after developmentagreement
Full production November 2001
Premier driving assets through theValue chain
2000 Interim Results Presentation
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ASIA GAS MARKETS& OPPORTUNITIES
2000 Interim Results Presentation
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ASIA FOCUS AREAS
Premier’s focus areas in South and Southeast Asia will witness growth and evolutionin their gas markets.
SOUTHASIA
SOUTHEASTASIA
Economic DevelopmentEconomic Development
Gas ConsumptionGas Consumption
Gas Sales OpportunitiesGas Sales Opportunities
2000 Interim Results Presentation
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ASIAN GAS MARKET OUTLOOK
Southeast Asia has rebounded from the crisis of 1997, and the short termgrowth outlook for countries in the region ranges from 5-7%.
GD
P G
row
th in
SE
Asi
a (%
)
15
10
5
0
-5
-10
-15
1998 1999 2000 (forecast) 2001 (forecast)19971996
IndonesiaMalaysiaSingaporeThailandMyanmarPakistan
Source: World Bank, Consensus Forecasts Inc.
2000 Interim Results Presentation
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Although some new projectshave suffered delay…… gas production remainedSteady through-out Asia downturn
NATURAL GAS CONSUMPTION
Bangladesh Pakistan
BCFD
MyanmarIndia0.0
1.0
2.0
3.0
4.0
Indonesia Malaysia Singapore Thailand
1997199819992000F2001F2002F
Data source: BP World Energy stats 2000
2000 Interim Results Presentation
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ASIAN GAS MARKET OUTLOOKGas Demand for Power Generation
20000
2010 2000 2010 2010 2000 2010 2000 2010
Indonesia Malaysia Singapore Thailand Myanmar
Proj
ecte
d po
wer
gen
erat
ion
by fu
el (%
sha
re)
20
40
60
80
100
Coal Oil Gas Other (primarily hydroelectric)
Pakistan
201020002000
Most countries in Southeast Asia are substituting gas and coal for oil inpower generation
2000 Interim Results Presentation
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Proposed pipel ine
Exist ing pipel ine
Resource
M arket
NorthCentralIndia
EastIndiaOffshore
Pakistan
Assam/ Tripura Basin
W. NatunaJDA
Arun LNG Plant
N.E. Sumatra
Pangkah Kangean
EastJava
OffshoreMyanmar
S. China Sea Miocene Reefs
Miocene Reefs
West India Basin
MideastLNG
Kirthar
GAS RESOURCE DEVELOPMENT IN SOUTH AND S.E. ASIAA schematic map of key gas basins with potential markets suggests a wealth of opportunities
East Bengal
WestJava
2000 Interim Results Presentation
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M12 M13M10
M14
Yadana
Yetagun
Bangkok
Wang Noi
Ratchaburi
Rayong
AndamanSea
Yangon
Gulf ofThailand
MYANMAR –Gas Sales and Markets
Domestic markets require100 mmscfd by 2002 and250 mmscfd by 2004
Thailand current demandfrom Myanmar 725 mmscfdby 2001
Estimated shortfall of300-400 mmscfd by 2005
Further Myanmar gas suppliesto Thailand competitive
Potential NESumatra Markets
2000 Interim Results Presentation
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PAKISTAN - Future Gas Market Opportunities
Qadirpur ML
Lahore
Islamabad
Quetta
Sukkur
Karachi
ZamzamaDiscovery
240 mmscfd toKarachi from Bhit
240 mmscfd baseload to SNGPL
100 mmscfd raw gas to SNGPL
50 mmscfd to Liberty Power
150 mmscfdrequired atGhuddu
200-400 mmscfdpotential demandat Multan
70 mmscfdto Karachi
Up to 400 mmscfdshortfall in Karachi
Bhit & Badhra
50 mmscfd requiredin Quetta
100 mmscfd gridcapacity
ZarghunDiscovery
3.9 tcf discovered in4 fieldsSignificant remainingpotential
FOLD BELT
2000 Interim Results Presentation
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Semangkok
Kerteh
Sumatra
Kalimantan
JavaTimor
Sulawesi
BRUNEI
JAKARTA
Surabaya
SINGAPORE
Pagerungan
Natuna ‘D’Alpha
Natuna
Ujung Pangkah
INDONESIA - Future Gas Market PotentialFurther 300-500 bcf discovered
150-300 mmscfd immediate market,300 mmscfd for power generation
325 mmscfd supply agreed;further 300 mmscfd anticipated
150-250 mmscfd required
2000 Interim Results Presentation
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Pelikan
Anoa
KRA
KF
KH Open
Open Open
Area I
Duyong
Igunana
Open
Open
Ande Ande Lumut
Gajah Baru
Naga
Area III
INDONESIA –NATUNA SEA: DISCOVERIES
Ande Ande Lumut-1Oil Discovery
360mmbbl OIPApril 2000
New oil playextension
Betet-1Oil Prospect
Sept-Oct 2000
Gajah Baru50mmscfd
on test
Naga & IguanaDiscoveries
H1 2000
2000 Interim Results Presentation
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ASIA GAS STRATEGY
Opportunities to sell more gas from existing portfoliousing existing infrastructure
Significant opportunities within the South/South East Asia region
Looking to supplement portfolio with new low entry cost -high opportunity value business
Synchronise future investment with future production andincome growth
2000 Interim Results Presentation
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SUMMARY
2000 Interim Results Presentation
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Positives- Exploration success- Commercial performance- Cashflow/capex crossover next 12 months- Upsides : portfolio, experience, NAV
SUMMARY
But… .- Continuing market concerns : countries, finances- Alliance : shareholding structure, evidence of added value- Largest discount in sector
Focus on unlocking value for all shareholders