2000 I I NTERIM NTERIM R R ESULTS ESULTS P P RESENTATION 2000 RESENTATION 13th September 2000 Version 1.1
2000 Interim Results Presentation PRESENTATION Introduction and Overview Charles Jamieson Results John van der Welle Operations Richard Liddell Asia Gas Markets Steve Lowden Summary Charles Jamieson Make a Difference
2000 Interim Results Presentation 2000 HIGHLIGHTS OBJECTIVE OUTCOME Delivery of major gas developments - Yetagun on-stream early - WNG on track for early gas Commercialise existing discoveries - Kyle EWT out-performing/Curlew development 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 Make a Difference
2000 Interim Results Presentation R ESULTS Make a Difference
2000 Interim Results Presentation 2000 INTERIM RESULTS SUMMARY 2000 1999 Realised oil prices ($/bbl) (post hedging) 21.4 11.8) Production volume (mboepd) 25.9 29.2) £m £m Turnover 54 39) Operating profit / (loss) before exceptionals 18 (3) Profit / (loss) after tax 3 (13) Operating cashflow (after interest and tax) 4 (9) Capital expenditure (including JVs) 69 96) Net debt (including JVs) 359 399) Gearing (including JVs) 111 205) % % Make a Difference
2000 Interim Results Presentation PROFIT & LOSS ACCOUNT 2000 1999 Production (mboepd) 25.9) 29.2) Production down 11% Realised oil price ($/bbl) 21.4) 11.8) due to natural field declines, £m £m Fergus shutdown, offset by Kyle EWT and Yetagun Turnover 54) 39) less: share of JVs turnover (5) (3) Group turnover 49) 36) Hedging loss - £11.4m Operating costs (9) (14) Amortisation (17) (18) Underlying unit opex at Other (3) (3) £3.80/boe – impact of Kyle EWT, field declines Gross profit 20 ) 1) Administration costs (4) (5) Operating profit / (loss) 16) (4) Underlying DDA unchanged at £3.59/boe Operating profit in JVs 2) 1) Total operating profit / (loss) 18) (3) Profit on disposal -) 1) Cessation of interest capitalisation on Net interest (8) (7) Yetagun Exchange gain 3) 1) Profit / (loss) before tax 13) (8) Increased PRT on Taxation (10) (4) Wytch Farm due to Profit / (loss) after tax 3) (13) higher prices and overseas taxes £2.6m Earnings per share - basic and diluted (pence) 0.2) (1.2) Make a Difference
2000 Interim Results Presentation CASHFLOW 2000 1999 £m £m Net cashflow from operations 25) 3) Increase in line with higher net revenues Net interest (11) (11) Taxation (10) (1) Higher taxes on higher profits Operating cashflow (after interest and tax) 4) (9) Capital expenditure (61) (76) Build-up capital expenditure Yetagun financing -) 85) Excl JV JV Total £m £m £m Investment in JV (3) -) Exploration 6 4 10 Fields 55 4 59 Net cashflow (60) -) 61 8 69 Repayment of advance from JV partner -) (16) Exchange/other (15) (14) Movement in net debt (75) (30) (289) Opening net debt (171) Closing net debt (246) (319) Note: excludes JVs Make a Difference
2000 Interim Results Presentation BALANCE SHEET 2000 2000 (incl. JVs) (excl. JVs) £m £m Cash 103 100 Debt 462 346 Net debt 359 246 Shareholders’ funds 322 NA Gearing ratio 111 NA % % Make a Difference
2000 Interim Results Presentation COMMITTED DEBT Drawn at Facilities 30.06.00 £m £m Bank credit $250m (final maturity 2003) 166 132 Loan notes $280m (final maturity 2008) 186 186 Convertible capital bond (maturity 2005) 28 28 380 346 Yetagun financing $158m - $155m drawn (maturity 2008) 105 104 Availability as at 30.06.00 485 450 Accrued Yetagun interest 12 Total 462 Cash 103 Net debt (incl. JVs) 359 Make a Difference
2000 Interim Results Presentation CAPITAL EXPENDITURE BY COUNTRY 140 Myanmar 120 Pakistan Indonesia UK 100 (£ million) 80 60 40 20 0 2000 2001 2002 2003 2004 Crossover in sight – falling capex and rising cashflow Make a Difference
2000 Interim Results Presentation O PERATIONS Make a Difference
2000 Interim Results Presentation PRODUCTION BY COUNTRY 80,000 Myanmar Pakistan Indonesia UK 60,000 Production (BOEPD) 40,000 20,000 0 2000 2001 2002 2003 2004 Note: Yetagun volumes are set at contracted level including Take or Pay Make a Difference
2000 Interim Results Presentation MYANMAR – YETAGUN DELIVERING OPERATIONS PERFORMANCE Production commenced 7 th May 2000 Project delivered on time, on budget Well managed transition into production operations Focus on operations performance Phase II engineering contracts to be awarded in October Make a Difference
2000 Interim Results Presentation YETAGUN NEAR TERM DEMAND LOGISTICS Ratchaburi Power Plant Set for Completion 2001 5000 Ratchaburi Generation Capacity CCGTs 4500 Thermal 2 Thermal 1 4000 TRI Energy 3500 SCGTs 3000 MW 2500 2000 1500 1000 500 0 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 99 00 00 00 00 01 01 01 01 02 02 02 02 Plant Efficiency SCGTs – 30%; Tri Energy / EGAT CCGTs – 40%; Thermal – 40% Make a Difference
2000 Interim Results Presentation INDONESIAN - ANOA Gas Export (AGX) DELIVERING OPERATIONS PERFORMANCE 100 90 Plan Cum 80 Act Cum 70 E 60 PERCENTAG 50 40 30 20 10 0 Premier’s third platform success in 3 years O N D J F M A M J J A S O N D J F M A M J 2000 2001 1999 2000 2001 Top quartile development Description S O N D J F M A M J J A S O N D J F M A M J J A EPCI CONTRACT AWARD EARLY GAS AVAIL. CONTRACT KEY MILESTONES INSTALL JACKET COMMISSIONING Impressive cycle time and cost & PIPELINE GAS AVAIL. EPCI EXECUTION MONSOON SEASON Engineering & Procurement Jacket & Piles Fabrication Jacket installed - deck and other facilities Topsides Fabrication Transport & Install AGX Jacket & SA-21 P/Line ahead of schedule Transport & Install AGX Deck & Compr. Module Hook-Up & Commission AGX Components INTERFACES S/D Concurrent focus on delivering operations Anoa Platform Modifications Drilling Programme (SA-21 & Workovers) performance Early Gas Production Skid RISER TIE-IN WNTS Interfaces P/LINE REPAIRS/DRYING Make a Difference
2000 Interim Results Presentation INDONESIA – WEST NATUNA GAS PIPELINE DELIVERING OPERATIONS PERFORMANCE 656 km pipeline installed, on budget, Anoa Platform 7 months ahead of schedule KF Platform MALAYSIA Routine weld repairs in progress INDONESIA Premier - driven plan for early gas sales E N I Significant acceleration secures early L K N production Mubur U R T - December 2000 E N I L Jemaja S A G SINGAPORE Bintan Batam Make a Difference
2000 Interim Results Presentation UNITED KINGDOM - KYLE DELIVERING OPERATIONS PERFORMANCE Ranger operator - Premier drive A P P R O XIMA T E L Y 12K m T O B A NF F F P S O North K y le Early production commenced May 2000 D rill C e n tre W e ll 29 /2c -T Z T ee P ro te c tion F ra m e - Production to PGS Petrojarl FPSO 400,000 Premier barrels delivered to date C o n tro l U m bilic a l T C o n n e c tio n S HU T T L E T A NK E R S o u th K yle Drill C e n tre Discussions in progress with Shell/Maersk 8” P rod u c tio n P ip e lin e a n d C o n tro l U m b ilic a l V a lv e P ro tec tio n F ra m e - Full field development via Curlew W e ll 2 9/2c -1 2Z - Oil production via shuttle tanker - Gas production via St. Fergus terminal P E T R O J A R L -1 8” P ro d u c tio n lin e B u n dled Preparing to test second well E lec tro /H y d ra u lic R is ers C o n tro ls U m b ilic a l R is e r B a s es Make a Difference
2000 Interim Results Presentation UNITED KINGDOM - CHESTNUT DELIVERING OPERATIONS PERFORMANCE Premier innovative development arrangement Brovig production services – FPSO Crystal Ocean Shared revenue agreement Early production March 2001 - Only 6 months after development agreement Full production November 2001 Premier driving assets through the Value chain Make a Difference
2000 Interim Results Presentation A SIA G AS M ARKETS & O PPORTUNITIES Make a Difference
2000 Interim Results Presentation ASIA FOCUS AREAS Premier’s focus areas in South and Southeast Asia will witness growth and evolution in their gas markets. Economic Development Economic Development Gas Consumption Gas Consumption SOUTH Gas Sales Opportunities Gas Sales Opportunities ASIA SOUTHEAST ASIA Make a Difference
2000 Interim Results Presentation ASIAN GAS MARKET OUTLOOK Southeast Asia has rebounded from the crisis of 1997, and the short term growth outlook for countries in the region ranges from 5-7%. 15 10 GDP Growth in SE Asia (%) 5 0 1996 1997 1998 1999 2000 (forecast) 2001 (forecast) -5 Indonesia Malaysia Singapore Thailand -10 Myanmar Pakistan -15 Source: World Bank, Consensus Forecasts Inc. Make a Difference
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