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FY16 Results Presentation – Awe Limited

Awe Limited · Aug 25, 2016 · 44 slides

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Slides

  1. FY16 Results Presentation – Awe Limited – slide 1
    AWE LIMITED FY16 FULL YEAR RESULTS PRESENTATION 25 August 2016
  2. FY16 Results Presentation – Awe Limited – slide 2
    Overview DAVID BIGGS Managing Director and CEO 4
  3. FY16 Results Presentation – Awe Limited – slide 3
    Agenda Overview Financial and Operating Results Strategic Focus Project Updates Outlook 5
  4. FY16 Results Presentation – Awe Limited – slide 4
    Highlights Operational Solid production and HSE performance Refreshed and refocused management team Excellent Waitsia flow test results; subsequent reserves upgrade (3 June 2016) Waitsia stage 1A achieves first gas on time and budget…
  5. FY16 Results Presentation – Awe Limited – slide 5
    Key objectives achieved Waitsia gas project Strengthened financial position Outstanding flow test results from Waitsia-1 Stronger balance sheet with net cash at 30 exceeded 50 mmscf/d from combined zones June 2016 FID for Stage 1A…
  6. FY16 Results Presentation – Awe Limited – slide 6
    Management team refreshed David Biggs, Managing Ian Bucknell, Chief Neville Kelly, Company Director and CEO Financial Officer Secretary and GM Commenced in May 2016 Commenced in July 2016 Corporate Services Commenced in July…
  7. FY16 Results Presentation – Awe Limited – slide 7
    Focused on core assets Focused on Australia, New Zealand and Indonesia; exited China and USA 9
  8. FY16 Results Presentation – Awe Limited – slide 8
    Health, Safety, Environment & Community No Lost Time Injuries recorded in FY16 - 432 days injury free to 15 August 2016 No reportable environmental incidents in FY16 - 4th consecutive year of no reportable environmental incidents…
  9. FY16 Results Presentation – Awe Limited – slide 9
    Financial and Operating Performance IAN BUCKNELL Chief Financial Officer 11
  10. FY16 Results Presentation – Awe Limited – slide 10
    Full year financial performance Unit FY16 FY15 Change Total Production for FY16 mmboe 5.0 5.1 - 1% Sales Revenue1 m 202.4 283.7 -29% Operating costs m 110.4 140.5 -21% Field EBITDAX m 92.0 143.2 -36% Asset impairments before…
  11. FY16 Results Presentation – Awe Limited – slide 11
    Total production Total Production mmboe FY16 FY15 Change Gas 2.6 2.6 0% LPG 0.5 0.5 13% Condensate 0.8 0.8 -1% Oil 1.1 1.2 -11% TOTAL 5.0 5.1 -1% Production in line with previous year, despite only 9 months of Sugarloaf…
  12. FY16 Results Presentation – Awe Limited – slide 12
    Sales revenue Sales Revenue million FY16 FY15 Change Gas 69.4 78.1 -12% LPG 16.5 19.2 -14% Condensate 57.1 74.3 -23% Oil 59.3 112.1 -47% TOTAL 202.4 283.6 -29% Sales revenue down due to Sugarloaf sale and lower oil prices…
  13. FY16 Results Presentation – Awe Limited – slide 13
    Field EBITDAX New Zealand and Western Australia impacted by lower oil prices 15
  14. FY16 Results Presentation – Awe Limited – slide 14
    Non-cash impairments for FY16 Non-cash impairment Taxation Non-cash OIL AND GAS ASSETS before tax (m) Benefit impairment 1H 2H FY (m) after tax (m) Cliff Head Oil Project 14.6 - 14.6 - 14.6 Tui Area Oil Project 53.6 - 53.6 - 53.6…
  15. FY16 Results Presentation – Awe Limited – slide 15
    Earnings analysis Net loss of 363.0m includes 291.8m in pre tax, non-cash impairments 17
  16. FY16 Results Presentation – Awe Limited – slide 16
    Underlying NPAT reconciliation Reconciliation of underlying NPAT for FY16 m Statutory NPAT (363.0) Less non-recurring items (after tax): Impairment 242.5 Restructuring costs 5.8 Perth basin restoration costs 6.2 Fair value adjustment on…
  17. FY16 Results Presentation – Awe Limited – slide 17
    Cash flow analysis Cash maintained and substantial debt reduction 19
  18. FY16 Results Presentation – Awe Limited – slide 18
    Divestments Production and Development assets Sale Sugarloaf US190m - 10% working interest in USA unconventional oil project - Eliminated significant recurring capex - Substantially strengthened balance sheet Sale Cliff Head 3.2m -…
  19. FY16 Results Presentation – Awe Limited – slide 19
    Investment Analysis Development Expenditure Exploration Expenditure million FY16 FY15 change million FY16 FY15 change S.E. Australia 45.2 89.2 -49% S.E. Australia 0.9 2.4 -63% Western Australia 17.7 1.7 941% Western Australia 5.9…
  20. FY16 Results Presentation – Awe Limited – slide 20
    Guidance for FY17 FY16 FY17 Key Indicator Unit Actual Guidance Production mmboe 5.0 2.7 3.0 Sales Revenue m 202 100 - 120 Development Expenditure m 120 50 - 60 Exploration Expenditure m 19 5 Notes Guidance prepared using…
  21. FY16 Results Presentation – Awe Limited – slide 21
    Strategic Focus DAVID BIGGS Managing Director and CEO 23
  22. FY16 Results Presentation – Awe Limited – slide 22
    AWE reshaped to grow Near-term focus on Australian gas assets Production now 60% gas and NGLs; oil exposure hedged Deliver production and revenue growth through Waitsia gas project Continue appraisal and maximise exploration potential…
  23. FY16 Results Presentation – Awe Limited – slide 23
    Key initiatives report card Initiative Action Status Cash flow Hedge oil production Reduce costs Reduce overheads by 20% in FY 2016 Implement procurement and operating cost savings Optimise structure Close Jakarta project office…
  24. FY16 Results Presentation – Awe Limited – slide 24
    Reserves & Resources at 30 June 2016 2P Reserves plus 2C Resources totalled 173.5 mmboe at 30 June 2016 26
  25. FY16 Results Presentation – Awe Limited – slide 25
    Clear development pipeline Near term - next 12 months First gas produced from Waitsia gas field (Stage 1A) Further appraisal drilling on Waitsia field (2 wells planned in 2017) Compression commissioned at BassGas delivering increased…
  26. FY16 Results Presentation – Awe Limited – slide 26
    Capturing value in uncontracted gas Indicative only for Waitsia Stage 2 based on current company modelling. Not a formal company forecast Waitsia Stage 2 first gas to align with gas market demand opportunities 28
  27. FY16 Results Presentation – Awe Limited – slide 27
    Well positioned for gas marketing East coast gas market West coast gas market Energy supply issues in SA NW Shelf confirmed reduced and Tasmania contribute to supply to WA market significant spot price increases Temporary spot…
  28. FY16 Results Presentation – Awe Limited – slide 28
    Project Updates DAVID BIGGS Managing Director and CEO 30
  29. FY16 Results Presentation – Awe Limited – slide 29
    Waitsia first gas on time and budget UPDATE PICS First gas achieved in August 2016; concept select process for Stage 2 (100 TJ/d) under way 31
  30. FY16 Results Presentation – Awe Limited – slide 30
    BassGas MLE-3 making good progress Final phase of MLE project, hook-up of compression, forecast for completion in 2H FY17 32
  31. FY16 Results Presentation – Awe Limited – slide 31
    AAL appraisal drilling completed on budget Preliminary testing indicates better crude quality, has potential to improve project economics 33
  32. FY16 Results Presentation – Awe Limited – slide 32
    Outlook DAVID BIGGS Managing Director and CEO 34
  33. FY16 Results Presentation – Awe Limited – slide 33
    Key near-term milestones Waitsia Gas Project enters next phase 10 TJ/d production from Waitsia Stage 1A from end of August 2016 Independent reserves review under way; results before end CY 2016 Appraisal drilling (2 wells) planned for…
  34. FY16 Results Presentation – Awe Limited – slide 34
    Summary Stronger balance sheet with low debt levels Waitsia first gas achieved in August 2016; concept select process for Stage 2 (100 TJ/d) under way Better quality crude from AAL G-Sand appraisal well has potential to improve…
  35. FY16 Results Presentation – Awe Limited – slide 35
  36. FY16 Results Presentation – Awe Limited – slide 36
    Appendix FY 2016 Full Year Results 38
  37. FY16 Results Presentation – Awe Limited – slide 37
    Production analysis FY 2016 FY16 Percentage FY15 Percentage REGION AND ASSETS Production of total Production of total Australia 000 BOE 000 BOE Bass Basin (BassGas) 1,497 30% 1,093 22% Otway Basin (Casino) 805 16% 1,072 21% Perth…
  38. FY16 Results Presentation – Awe Limited – slide 38
    Full year earnings breakdown FY16 FY15 m m Revenue 202.4 283.7 Operating Costs (110.4) (140.5) Amortisation (96.6) (119.1) Exploration costs expensed (18.2) (37.6) Asset impairments (291.8) (246.3) Net other (11.7) (49.7) (Loss)…
  39. FY16 Results Presentation – Awe Limited – slide 39
    Full year segmental reporting Total New Zealand South-Eastern Western United States Indonesia Exploration millions Australia Australia 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 Sales revenue 202.3…
  40. FY16 Results Presentation – Awe Limited – slide 40
    Full year cash flow analysis FY16 FY15 m m Opening cash 46.6 42.1 Net cash flow from operations 70.3 62.2 Asset acquisitions - (12.2) Asset disposals 235.6 56.3 Development spending (162.4) (241.5) Exploration spending initially…
  41. FY16 Results Presentation – Awe Limited – slide 41
    Balance Sheet summary Jun 2016 Jun 2015 Balance sheet item m m Assets Cash and cash equivalents 32.6 46.6 Receivables and inventory 140.3 177.1 Exploration and evaluation assets 33.0 69.1 Oil and gas assets 375.7 882.9 Land and building…
  42. FY16 Results Presentation – Awe Limited – slide 42
    2P Reserves as at 30 June 2016 2P Reserves Project/Area Equity (mmboe) 7.4 24.6 6.2 BassGas BassGas 35% 7.4 Otway Basin Otway Basin 25% 6.2 Onshore PB Onshore PB 33-100% 31.7 Tui Ande Ande Lumut Tui 57.5% 1.1 1.1 AAL 50%…
  43. FY16 Results Presentation – Awe Limited – slide 43
    2C Contingent Resources as at 30 June 2016 2C Contingent Resources Project/Area Equity (mmboe) 9.5 9.3 30.3 Bass Basin 35-40% 30.3 Bass Basin 0.9 Otway Basin Otway Basin 25% 1.3 Onshore PB Onshore PB 50-100% 51.2 Tui Ande…
  44. FY16 Results Presentation – Awe Limited – slide 44
    Conversion Tables Volume 1 cubic metre = 1 kilolitre = 35.3 cubic feet = 6.29 barrels 1 megalitre = 1,000 cubic metres Energy Value 1,000 standard cubic feet of sales gas yields about 1.055 gigajoules (GJ) of heat 1 petajoule…

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