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AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited

Oil Search Limited · Aug 5, 2005 · 13 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 1
    IFRS UPDATE AND MOVE TO SUCCESSFUL EFFORTS 5 August 2005
  2. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 2
    Introduction Oil Search already accounts under IFRS. However, it is impacted by amended standard, IFRS 3 Company has also voluntarily elected to move from Area of Interest to Successful Efforts methodology for accounting for Exploration…
  3. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 3
    IFRS 3 IFRS 3 - amended standard relating to accounting for business combinations Effective from 31 March 2004 Old standard (IAS 22) required discount resulting from acquiring assets below fair value to be taken as negative goodwill and…
  4. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 4
    Impact of IFRS 3 OSH has US57.5m of unamortised negative goodwill from merger with Orogen Minerals and purchase of Chevron Texacos PNG assets Transfer US68.9m to retained earnings (effective 1/1/04) Restate 2004 net profit by…
  5. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 5
    Move to Successful Efforts Oil Search has elected to move from Area of Interest to Successful Efforts accounting policy for E&E expenditure Why Follows Board Review of accounting policy Pre-empts expected future change in accounting…
  6. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 6
    Area of Interest vs Successful Efforts Area of Interest Area of Interest defined as individual prospecting licence or development area All exploration & evaluation (E&E) costs capitalised to area Expected Monetary Value (EMV) of…
  7. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 7
    Area of Interest vs Successful Efforts cont. Successful Efforts All E&E costs, except licence acquisition and successful well costs, are written-off in period incurred E&E costs to be written-off include seismic, new venture…
  8. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 8
    Impact of Successful Efforts Review of balance sheet as at 31/12/04 results in write- down of US230m capitalised costs US130m of oil exploration costs US80m of gas costs incl. capitalised interest, marketing US20m of exploration in…
  9. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 9
    Future impact of Successful Efforts Successful efforts will most likely result in higher pre-tax E&E write-offs than in the past, depending on exploration success rates Example: US50m annual spend on E&E US40m on drilling, balance on…
  10. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 10
    Summary of Balance Sheet Balance Sheet Balance Sheet Impact of Balance Sheet (US million) 31/12/04 Changes 1/1/05 Current Assets 307 - 307 Non-Current Assets Property, Plant & Equipment 628 (20) 608 Exploration Costs 540 (210) 330…
  11. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 11
    Summary of 2004 Income Statement Income Statement 2004 FY Impact of 2004 FY (US million) changes Restated Gross Profit from operating activities 275 - 275 Negative Goodwill 11 (11) - Exploration write-off (6) (57) (63) Other (7) -…
  12. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 12
    Key Parameters 2004 Reported Restated EBITDA (USm) 331 331 NPAT (USm) 151 97 Shareholders Funds (USm) 962 870 Gearing (%) NIL NIL Operating Cash Flow (USm) 277 277
  13. AUGUST 2005 CORPORATE PRESENTATION – Oil Search Limited – slide 13
    Summary Accounting policy changes should assist users of our Financial Statements, bringing them in line with domestic and global peers Changes have no impact on Oil Searchs strategy or underlying performance of our business Also, no…

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