powerpoint-presentation · delivered an interim report of lower buah reserves as at 30 june 2014. *...
TRANSCRIPT
Q2 2014 19 August 2014
Q2 Highlights
• Record net sales of MSEK 245, up 26% compared to Q1
• EBITDA of MSEK 192, up 48% compared to Q1
• Net result MSEK 107, up 86% compared to Q1
• Earnings per share SEK 3.02 for Q2
• MSEK 400 bond loan redeemed after MUSD 100 reserve based credit facility obtained
• Exploration and appraisal continues:
– New production record each month during first six months 2014
– A total of 12 wells completed on Blocks 3 and 4 during the second quarter 2014
– New third party reserve report relating only to Lower Buah reservoir on Block 4 Oman as at 30 June 2014
• 1P reserves 2.3 mmbo (1.2 mmbo 31 Dec 2013)
• 2P reserves 5.0 mmbo (2.2 mmbo 31 Dec 2013)
• 3P reserves 7.4 mmbo (3.7 mmbo 31 Dec 2013)
2
Tethys’ assets
Producing
Assets
Country Licence Area,
km2
Tethys
share
Partners* 2P reserves
(mmbo)
Production
Q2 2014
(bopd)
Oman Block 3 & 4 34,610 30% CC Energy, Mitsui 15.2 7,116
Lithuania Gargzdai 884 25% Odin Energi,
Geonafta
1.7 116
Exploration
assets
Oman Block 3 & 4 34,610 30% CC Energy, Mitsui
Oman Block 15 1,389 40% Odin Energy
Lithuania Rietavas 1,594 30% Odin Energi, Private
investors
Lithuania Raseiniai 1,535 30% Odin Energi, Private
investors
Other
assets
France Attila 1,986 40% Galli Coz
France Alès 215 37.5% Private investors
* Operator in bold
3
Reserves Oman
(31 Dec 2013, mmbo)
1P 2P 3P
Farha South 8.9 11.7 13.5
Saiwan East 0.7 1.3 2.8
Area 4
(Lower Buah) 1.2 2.2 3.7
Total 10.8 15.2 20.0
Reserves Lithuania* (mmbo)
1P 2P 3P
Gargzdai 0.8 1.7 2.8
Reserves Independent petroleum consultant
DeGolyer and MacNaughton
(“D&M”) reviews Tethys Oil’s reserves in
Oman annually.
Following successful drilling during the
first six months of 2014 of the Lower
Buah reservoirs on Block 4, D&M has
delivered an interim report of Lower Buah
reserves as at 30 June 2014.
* As per reserve report 31 Dec 2012, by Miller and
Lents, Ltd., reduced with 2013 year’s production.
Development of the Lower Buah reserves
(30 Jun 2014, mmbo)
1P 2P 3P
Total 31 Dec 2013 1.2 2.2 3.7
Production from Lower
Buah 2014
-0.4 -0.4 -0.4
Revisions/discoveries 1.5 3.2 4.1
Total 30 Jun 2014 2.3 5.0 7.4
4
• Increased production every month during 2014
• Over 8,000 bopd in July 2014
• Lithuanian ave. daily production amounted to 116 bopd in Q2-14
Average daily production in Oman
6 959 7 065 7 326
8 239
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
Apri
l
Ma
y
Ju
ne
Ju
ly
Aug
ust
Sep
tem
be
r
Octo
ber
Novem
be
r
Decem
be
r
Ja
nu
ari
Fe
bru
ary
Ma
rch
Apri
l
Ma
y
Ju
ne
Ju
ly
Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14
5
6
• Total production in Q2 2014 highest ever
• 6 months in a row with record production
• 67% increase in average daily production compared
with Q2-13
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
2011 2012 2013
Total production Ave daily production
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
0
100 000
200 000
300 000
400 000
500 000
600 000
700 000
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Total production Ave daily production
Production
Barrels Barrels
• Record net oil sales of 350,059 barrels
• Underlift position decreased with 13,323 bbl to 30,105 bbl from Q1-14
to Q2-14
Barrels Barrels
7
Sales in barrels
147 228
776 248 850 926
-75 795
609 -13 261
-80 000
-70 000
-60 000
-50 000
-40 000
-30 000
-20 000
-10 000
0
10 000
0
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
900 000
2011 2012 2013
Sold volumes Over-/underlift position
156 816
213 397
271 175 280 782
350 059
-19 804
-30 404
-13 261
-43 428
-30 105
-50 000
-45 000
-40 000
-35 000
-30 000
-25 000
-20 000
-15 000
-10 000
-5 000
0
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
Q2 2014 Q3 2014 Q4 2014 Q1 2014 Q2 2014
Sold volumes Over-/underlift position
• Net oil sales of MSEK 245 in Q2-14, up 26% compared to Q1-14
MSEK MSEK
8
Sales
104
584 592
0
100
200
300
400
500
600
700
2011 2012 2013
Sales of oil and gas
110
142
193 195
245
0
50
100
150
200
250
300
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Sales of oil and gas
Average selling price per barrel
• Stable oil prices Q-o-Q
• Stable exchange rate SEK/USD – less than 1% deprecation of SEK
USD/bbl
107,4
110,4
106,6
100,0
105,0
110,0
115,0
2011 2012 2013
Ave selling price
USD/bbl
9
107,3
102,1
108,5
106,6
105,9
100,0
105,0
110,0
115,0
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Ave selling price
EBITDA
• EBITDA of MSEK 192 in Q2, up 48% compared to Q1-14
• EBITDA margin the last five quarters has been in the range 67%-78%
10
84
509
479
81%
87%
81%
76%
78%
80%
82%
84%
86%
88%
0
100
200
300
400
500
600
2011 2012 2013
EBITDA EBITDA Margin
MSEK MSEK
83
96
148
130
192 75%
68%
77%
67%
78%
60%
62%
64%
66%
68%
70%
72%
74%
76%
78%
80%
0
50
100
150
200
250
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
EBITDA EBITDA Margin
Expenses
• Opex in Q1-14 affected by late incoming expenses from 2013
• Most opex is fixed
MSEK MSEK
11
0
96
152
20
28
31
0
25
50
75
100
125
150
175
200
2011 2012 2013
Operating expenses Administrative expenses
17
42 37
59
46 12
6 8
6
8
0
10
20
30
40
50
60
70
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Operating expenses Administrative expenses
Adjusted net back and opex per barrel*
12 * After current government take
11,3 14,1
45,9 41,5
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
2012 2013
Opex/bbl (USD/bbl) Netback (USD/bbl)
14,7 13,2 14,5 11,0 11,2
41,1 40,0 41,9
44,4 43,8
0,0
10,0
20,0
30,0
40,0
50,0
60,0
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Opex/bbl (USD/bbl) Netback (USD/bbl)
• Adjusted for timing differences, net back has been stable around
USD 40-45 per barrel last 5 quarters
• Adjusted opex between USD 11 and 15 per barrel, of which direct lifting
cost accounts for 50-60%
USD/bbl USD/bbl
Cash flow
• Strong cash flow development during last 5 quarters
13
MSEK MSEK
114
530
336
0
100
200
300
400
500
600
2011 2012 2013
Cashflow from operations
79
68
127 124
146
0
25
50
75
100
125
150
175
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Cashflow from operations
* 2012 including Mitsui farmout
Net result after tax
• Result is up 86% Q-o-Q mainly due to strong sales development,
lower opex and a decrease in underlift position
• The financial result of the first half 2014 is affected by the bond
redemption with extra ordinary effect of MSEK 23
69
314
240
0
50
100
150
200
250
300
350
2011 2012 2013
Result for the period
14
MSEK MSEK
39
52 45
58
107
0
20
40
60
80
100
120
Q2 Q3 Q4 Q1 2014 Q2
Result for the period
Balance Sheet Q2 2014
• A four-year, up to MUSD 100, senior revolving reserve based lending
facility signed to optimize and reduce financing costs, and to increase
financial and operational flexibility
• April 2014: MSEK 400 outstanding bond redeemed at 104.50% +
accrued interest
15
(MSEK) 2014-06-30 2014-03-31 2013-12-31
Cash 33 363 295
Long term debts 30 423 422
Net debt -3 60 127
Total assets 1,367 1,625 1,563
Shareholders’ equity 1,284 1,127 1,100
• Majority of investments were made on Blocks 3&4
• Focus on development, appraisal and exploration drilling
• Investments expected to be fully financed by cash flow from operations
• The investment budget for Block 3&4 2014 of MUSD 60 (approx. MSEK 400) – so far MSEK 125 invested
16
MSEK MSEK
Oil and gas investments
44
875
290
0
200
400
600
800
1000
2011 2012 2013
Oil and Gas Investments
122
59
73
45
79
0
20
40
60
80
100
120
140
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Oil and Gas Investments
Wells in Oman
• 12 wells drilled in Q2 2014
– 5 appraisal/exploration wells in Block 4
– 3 production wells and 4 water injection related wells on Farha
South oil field
22
37 35
0
5
10
15
20
25
30
35
40
2011 2012 2013
Wells drilled
17
9 8
10
15
12
0
2
4
6
8
10
12
14
16
Q2 Q3 Q4 Q1 2014 Q2
Wells drilled
Current activities
18
• Drilling on Raseiniai license
in Lithuania later this year
• Farha South water injection
programme nearing
completion
• Exploration/appraisal in
Farha South and South
Farha South
• Exploration drilling of well
LE-1 in eastern part of Block
4 ongoing
• Further appraisal of Lower
Buah reservoir section Ongoing 3D
seismic
Ongoing
exploration well
B4EW7
19
Current operations
Lower Buah areas and Saiwan East field (Khufai)
Q2 2014 19 August 2014