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OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
OGX 3Q Earnings Presentation
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OGX 3Q Earnings Presentation

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  • 1. Q3 RESULTSPRESENTATIONRio de Janeiro | November 9, 2012
  • 2. 1COMPANY STRATEGY
  • 3. COMPANY STRATEGYOGX is Brazil’s largest private oil and natural gas exploration company focused on accessing Brazil’ssubstantial, untapped reserves• World class portfolio consisting of 32 prime shallow water and onshore blocks  28 exploratory blocks in 5 Brazilian sedimentary basins  4 onshore exploratory blocks in 2 Colombian sedimentary basins• Executing the largest and most successful private sector exploratory campaign in Brazil  Overall exploratory success rate of 80% in 2012  More than 100 wells spud since the beginning of its exploratory campaign in Sep. 2009• Proven production capability  Quickly move from exploration to production – 2 years and 3 months in Campos Basin  Fully established operations that utilize low cost and off-the-shelf technology• Sound, flexible financial profile supports exploration and production strategy  Cash position to support exploration commitments, development and production ramp-up  First revenues of R$150.7 million booked in Q3 2012 from the sale of ~800,000 barrels  Economies of scale will dilute costs per barrel 3
  • 4. 2RESULTS SUMMARY
  • 5. FINANCIAL HIGHLIGHTSKEY FINANCIAL METRICS 3Q 2012 YTD 2012 First revenues of R$150.7 million booked from sale of ~800,000Revenues (R$ mm) 150.7 150.7 barrelsEBITDA – Pro forma¹ (R$ mm) (51.6) (305.1) Strong cash position of R$5.1 billion (US$2.5 billion) as of September 30,Net Profit (Loss) (R$ mm) (343.6) (887.1) 2012Realized Oil Price per Barrel (US$)² 95 95 OGX has the option to require controlling shareholder, Eike Batista,Capex (R$ mm) (1,115) (3,186) to purchase up to US$1.0 billion of new common shares of OGX at aProduction Volume (kboepd) 9.3 9.7 ³ price of R$6.30 per shareNote:1 Considers OGX Campos2 Refers to the cargo booked as revenues (delivered on July, 26, 2012)3 Production volume from January 31, 2012 to September 30, 2012 5
  • 6. FINANCIAL HIGHLIGHTS Cash Flow Statement (US$ million) Cash Flow (US$ million)1,2 1,500 (157) (597) Financing activities 3,608 (474) 268 (463) Operating activities (65) 203 (585) 2,862 2,939 Investing activities 2,492 1,800 - 1,900 4Q11 1Q12 2Q12 3Q12 4Q12E Cash Spending – Accrual Basis (US$ million)1 734 588 521 Capex SG&A/G&G Capex Parnaíba³Note:¹ Considers average exchange rate equivalent to: BRL 1.77/USD (1Q12); BRL 1.96/USD (2Q12); BRL 2.03/USD (3Q12)² Considers end of period exchange rate equivalent to: BRL 1.88/USD (4Q11); BRL1.82/USD (1Q12); BRL 2.02/USD (2Q12); BRL 2.03/USD (3Q12) 6³ Final stage of GTU assembly and two additional onshore rigs
  • 7. FPSO OSX-1 FINANCIAL RESULTSPro Forma EBITDA ReconciliationDelivered cargos 1st ¹ 2nd ¹ 3rd ² 4th ³ TotalDelivery Date 03/28/2012 4/21/2012 07/26/2012 10/15/2012Operation Period 51 days 27 days 98 days 80 daysProduction related to the shipments 547,376 246,809 789,774 809,495 2,393,454- in barrels (bbls)R$ (000)Net Revenue 118,003 55,996 150,686 169,145 493,830Sales Taxes - - - - -Royalties (10,687) (4,938) (14,842) (15,772) (46,239)Leasing (24,078) (13,222) (52,708) (41,998) (132,006)OSX Services (13,944) (7,236) (28,071) (22,499) (71,750)Logistics (12,005) (7,410) (27,795) (18,405) (65,615)Others (871) 36 (1,183) (1,529) (3,547)EBITDA 56,418 23,226 26,087 68,942 174,673 Total Net Revenue of R$ 493.8 million and Total% EBITDA / Net Revenue 47.81% 41.48% 17.31% 40.76% 35.37%EBITDA / barrel - (R$/barrel) 103.07 94.11 33.03 85.17 72.98 EBITDA of R$ 174.7 million, reflecting the asset’sDaily Cost (USD 000) 1st cargo 2nd cargo 3rd cargo 4th cargo Average high valueLeasing (268) (262) (268) (259) (264) Economies of scale will dilute costs per barrelOSX Services (155) (143) (143) (139) (144)Logistics (134) (147) (141) (113) (131)Others (10) 1 (6) (9) (7)Total (567) (551) (557) (520) (546)Note:1 Sales occurred during the Extended Well Test and before the declaration of commerciality – not accounted in Results and recorded as a reduction of “Fixed Assets”2 Sale occurred after the Extended Well Test and declaration of commerciality – recorded as net revenues3 Sale occurred after the Extended Well Test and declaration of commerciality – recorded as net revenues. Net figure of expenses associated with the sale of freight costs 7
  • 8. OPERATIONAL HIGHLIGHTS Production Exploration Production advancing on schedule 80% success rate in exploratory and appraisal program in 2012 Campos Basin:  Total production of 856,800 boe in the quarter Campos Basin:  Commenced drilling the wildcat well of Cozumel prospect  Avg. daily production of 9.3 kboepd Parnaíba Basin:  3rd production well in Tubarão Azul Field under completion and expected to come on-stream in the coming weeks  Approved by ANP the Discovery Evaluation Plan for Bom Jesus accumulation  Produced more than 2.5 million barrels of oil and delivered four shipments  Drilling of two additional appraisal wells concluded, both contained discoveries of hydrocarbons in Bom Jesus Parnaíba Basin: accumulation  Drilling of 16 production wells concluded  Started drilling five exploratory wildcat wells  Operating License authorizing production of natural gas obtained Santos Basin:  Oil discovery in the Curitiba prospect (32 meters of net pay)  Not continuing development of the BM-S-29 exploratory block Other Basins:  Plan to resume exploration campaign in Espírito Santo Basin before end of exploration period in October 2014  Participation in 2012 ANH round for Colombia basins and plans to begin drilling the first exploration well in 2013 8
  • 9. OPERATIONAL HIGHLIGHTS Tubarão Azul Field Development Tubarão Martelo Field Development BM-C-41 BM-C-39 TUBARÃO AZUL TUBARÃO MARTELO Exploration wells drilled Exploration wells drilled Production wells drilled Production wells drilled BM-C-40 Average Monthly Production(kboepd) Average Monthly Production (kboepd) 11.6 10.3 10.6 10.4 10.3 9.1 9.0 9.2 7.0  Concluding the drilling and completion of 3 horizontal production wells (TBMT-2HP, TBMT-4HP and TBMT-6HP) Effective Production Days Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12  FPSO OSX-3 scheduled to arrive by 3Q13 OGX-26HP 29 31 30 29 20 - 27 30 31 OGX-68HP - - - 17 30 31 31 30 31 Total 29 31 30 46 50 31 58 60 62  Tubarão Martelo Field is scheduled to come on-stream by 4Q13Average per well 11.6 10.3 9.1 6.1 5.5 7.0 5.7 5.2 5.2 (kboepd)¹Note: 9¹ Considers the total volume produced divided by the effective days of production
  • 10. 32013 OUTLOOK
  • 11. 2013 OUTLOOKProspect Block Total Estimated Recoverable Volume Working Interest OGX Estimated Recoverable Volume Spud date Exploratory wells to be drilled (PMean) (PMean)Cozumel BM-C-37 209-270 mmboe 70% 146-189 mmboe 4Q12 • Santos Basin: 1 well until the concession for exploration ends in Tulum BM-C-37 194-280 mmboe 70% 136-196 mmboe 4Q12Cancun BM-C-37 184-294 mmboe 70% 129-206 mmboe 1Q13 March 2013Viedma BM-C-38 245-313 mmboe 70% 172-219 mmboe 1Q13Cotopaxi BM-C-38 30-40 mmboe 70% 21-28 mmboe 1Q13 • Parnaíba Basin: 10 wells Total - 861-1,196 mm boe 70% 603-837 mm boe - TOTAL PRODUCTION • Espírito Santo Basin: 3 wells, together with Perenco, the operator [XXX] of the blocks Cancun CAPEX Tulum 2013 Capex Breakdown 2012 annual estimate: Exploration 2013 Annual $1.2 billion 20% estimate: Cozumel US$1.2 billion Viedma Development 80% Drilled Wells Cotopaxi 2012/2013 planned wells 11
  • 12. UPCOMING EVENTS CAMPOS BASIN PARNAÍBA BASINCampos Basin:• Connection of the third production well in the Tubarão Azul Field• Drilling important prospects in blocks BM-C-37 and BM-C-38 in the Campos BasinParnaíba Basin:• Beginning of GTU commissioning and gas production• Continuation of the exploration and wildcat campaigns SANTOS BASIN ESPÍRITO SANTO BASINSantos Basin:• Results of tests and drilling in the Santos Basin• Continuation of the exploration and wildcat campaignsEspírito Santo Basin:• Continuation of the exploration and wildcat campaigns 12
  • 13. APPENDIX
  • 14. FINANCIAL STATEMENTS R$ (000)INCOME STATEMENT 9M12 9M11 ∆ 3Q12 3Q11 ∆Net revenue 150,686 - 150,686 150,686 - 150,686 Cost of goods sold (COGS) ¹ (124,599) - (124,599) (124,599) - (124,599) Exploration expenses (172,567) (125,157) (47,410) (36,231) (50,175) 13,944 General and administrative expenses (158,611) (179,653) 21,042 (41,462) (71,820) 30,358EBITDA (305,091) (304,810) (281) (51,606) (121,995) 70,389 Depreciation (part of COGS) (14,665) (3,039) (11,626) (11,574) (1,210) (10,364) Amortization (part of COGS) (7,337) (4,170) (3,167) (3,798) (1,692) (2,106) Stock option (47,291) (22,477) (24,814) (41,701) (4,131) (37,570) Dry/subcommercial wells/areas (460,235) - (460,235) (294,712) - (294,712)EBIT (834,619) (334,496) (500,123) (403,391) (129,028) (274,363) Financial revenue 222,237 345,749 (123,512) 60,146 102,823 (42,677) Financial expense (329,153) (133,170) (195,983) (127,305) (101,589) (25,716) Net financial results (106,916) 212,579 (319,495) (67,159) 1,234 (68,393) Currency exchange (366,080) (4,191) (361,889) (26,764) (12,723) (14,041) Derivatives 18,294 (81,815) 100,109 (4,205) 150,318 (154,523)EBT (1,289,321) (207,923) (1,081,398) (501,519) 9,801 (511,320) (-) Income tax 389,151 30,625 358,526 157,900 (35,779) 193,679Net profit (loss) for the year- Pro forma (900,170) (177,298) (722,872) (343,619) (25,978) (317,641) OGX Campos Merger 13,102 - 13,102 - - -Net profit (loss) for the year- Book value (887,068) (177,298) (709,770) (343,619) (25,978) (317,641)Attributed to: Non controlling interests (21,306) (17,167) (4,139) (288) (8,488) 8,200 Controlling shareholders (865,762) (160,131) (705,631) (343,331) (17,490) (325,841)Note:¹ This balance does not include parts of COGS related to depreciation, amortization and royalties that are disclosed in specific lines of the table above 14
  • 15. FINANCIAL STATEMENTS R$ (000)BALANCE SHEET Sep 30, 2012 Dec 31, 2011 Sep 30, 2012 Dec 31, 2011ASSETS LIABILITIES AND EQUITYCurrent assets Current Liabilities Cash and cash equivalents 5,058,579 5,367,451 Trade payables 755,296 431,931 Marketable securities 3,443 52,290 Taxes, contributions and profit sharing payable 15,830 26,070 Escrow deposits 14,758 39,039 Salaries and payroll charges 44,701 54,507 Taxes and contributions recoverable 65,464 78,137 Loans and financings 138,738 22,301 Derivative financial instruments 25,295 8,879 Accounts payable to related parties 109,055 96,692 Oil inventories 105,448 - Other accounts payable 16,299 87,807 Other credits 130,187 27,934 1,079,919 719,308 5,403,174 5,573,730 Noncurrent Liabilities Loans and financings 7,908,034 4,750,113 Provisions 155,217 11,743 8,063,251 4,761,856 Noncurrent Assets Shareholders’ Equity Inventories 230,827 390,071 Capital stock 8,821,134 8,810,307 Taxes and contributions recoverable 154,321 278,810 Capital reserves 185,242 274,109 Deferred income taxes and social contributions 673,306 282,693 Earnings reserves 97,737 - Credits with related parties 176,278 139,386 Currency translation adjustments 42,086 19,588 Retained earnings (deficit) (1,168,308) (289,444) Fixed assets 9,019,065 6,172,783 Portion attributed to controlling shareholders 7,977,891 8,814,560 Intangible assets 1,508,756 1,512,724 Portion attributed to non-controlling interests 44,666 54,473 11,762,553 8,776,467 8,022,557 8,869,033Total Assets 17,165,727 14,350,197 Total Shareholders’ Equity 17,165,727 14,350,197 15
  • 16. FINANCIAL STATEMENTS R$ (000) R$ (000)FIXED ASSETS LOANS AND FINANCING Balance as of December 31, 2011: 6,172,783 Balance as of December 31, 2011: (4,772,414)(+) CAPEX (-) New fundings (2,537,689) Campos Basin 2,073,746 (-) Accrued interests (403,775) Santos Basin 513,091 (-) Currency exchange (695,957) Parnaíba Basin 374,966 (+) Interest paid 336,315 Espirito Santo Basin 47,842 (+) Funding costs 39,032 (-) Amortization of funding costs (12,284) Pará Maranhão Basin 45,910 Corporate 130,483 Balance as of September 30, 2012 (8,046,772) 3,186,038 (+) Borrowing costs 123,261 (+) Asset retirement obligation 103,047 (-) Gross margin EWT (79,644) (-) Disposals (98) (-) Depreciation (26,087) (-) Write off Dry/Subcommercial wells (460,235) Balance as of September 30, 2012 9,019,065 16

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