[PPT] - Neptune Energys impact on the European economy 2019 REPORT PowerPoint Presentation

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European Economic Impact Report 2019 REPORT

Neptune Energy’s impact on the European economy

2019 REPORT

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European Economic Impact Report 2019 REPORT

OVERVIEW

How we contribute to the economy

OUR DIRECT IMPACT

The people we employ + the GDP our

perations generate.

The money we spend with suppliers who employ people, generate GDP and use other suppliers. Wages spent by employees – ours and our suppliers – in the wider economy, generating more GDP and jobs. Direct + indirect + induced =

ur total economic impact.

OUR INDIRECT IMPACT OUR INDUCED IMPACT OUR TOTAL IMPACT

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European Economic Impact Report 2019 REPORT

OUR EUROPEAN ECONOMIC IMPACT IN 2019

OUR DIRECT IMPACT

We directly generated $1.4

billion in gross value added to

GDP across the UK, Netherlands, Norway and Germany. We employed around 1,300 people. We collected and paid more than

$400 million in taxes. The

majority of this was direct tax to the Norwegian government.

Note: Losses brought forward extinguished taxable profjts in the UK. In Germany, no corporate tax was payable as the company generated taxable losses for the period.

We spent $1.1 billion on operational and capital goods and services across a range of industries. This indirectly supported an estimated $984 million in gross value added to GDP across the UK, Netherlands, Norway and Germany. We estimate it also indirectly supported 5,700 other jobs. We spent 59% of capital expenditure

n goods and services to develop and
perate our oil and gas facilities, such

as drilling equipment. We spent $197 million on employee compensation payments and estimate $90 million of that was spent in the consumer economy. Money spent by our suppliers’ employees supported $420 million in gross value added to GDP, as well as 4,500 jobs. We supported an estimated

$2.8 billion in gross value added

to GDP in the UK, Netherlands, Norway and Germany. That’s the equivalent

f 0.67% of Norway’s total GDP.

We supported a total of 11,500 jobs. That’s the equivalent of supporting

eight jobs for every Neptune employee.

OUR INDIRECT IMPACT OUR INDUCED IMPACT OUR TOTAL IMPACT

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European Economic Impact Report 2019 REPORT

OUR ECONOMIC IMPACT IN THE UK

Neptune in the UK

We are an active ofgshore operator in the UK,

with substantial North Sea interests in gas production, subsea development and exploration.

We operate the Cygnus gas fjeld, the UK’s largest

single producing fjeld, which supplies enough gas to support the equivalent of 1.5 million homes.

We are also capable of supplying around 12% of

domestic gas needs via our operated Cygnus and Gjøa platforms.

*based on an implied GVA multiplier of 2.5

UK in numbers

Gross value added to UK GDP:

$438 million

For every Neptune employee in the UK, around

16 jobs

are supported elsewhere in the domestic economy Every $1 GVA we directly generated supported

another $1.5

elsewhere in the UK economy* Total number of jobs:

2,800

$ MILLION

Gross value added (GVA) contribution to GDP Employment

500 3,000 2,500 2,000 1,500 500 1,000 300 400 200 50 450 250 100 350 150 JOBS 161 174 53 94 118 438 605 833 1,180 2,779 D i r e c t G V A D i r e c t e m p l

y

m e n t I n d i r e c t G V A

O

P E X I n d i r e c t e m p l

y

m e n t

O

P E X T

t

a l G V A T

t

a l e m p l

y

m e n t I n d u c e d G V A I n d u c e d e m p l

y

m e n t I n d i r e c t G V A

C

A P E X I n d i r e c t e m p l

y

m e n t

C

A P E X

Source: Oxford Economics

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European Economic Impact Report 2019 REPORT 2,500

OUR ECONOMIC IMPACT IN NORWAY

Neptune in Norway

We are the fjfth largest independent operator on the Norwegian

continental shelf.

Our Norwegian fjelds make up the largest proportion of our portfolio.
We have an interest in 68 licences, of which we operate 13.
Gjøa is our largest operated asset and was the fjrst fmoating production

platform in the world to be powered sustainably by onshore facilities.

*based on an implied GVA multiplier of 1.8

Norway in numbers

Gross value added to Norway GDP:

$1.6 billion

This is the equivalent

f 0.39% of Norway’s

total GDP in 2019 For every Neptune employee in Norway, around

6 jobs

are supported elsewhere in the domestic economy Every $1 GVA we directly generated supported

another $0.8

elsewhere in the Norwegian economy* Total number of jobs:

2,300

Norway had the highest spend on

capital goods

f all four countries. We

spent the majority on drilling rigs with local suppliers A substantial proportion of Norway’s direct GVA went into

taxes paid

to the Norwegian government

$ MILLION

Gross value added (GVA) contribution to GDP Employment

1,800 2,000 1,500 500 1,000 1,000 1,400 600 1,600 800 200 1,200 400 JOBS 330 875 60 523 126 1,585 401 523 1,027 2,282 D i r e c t G V A D i r e c t e m p l

y

m e n t I n d i r e c t G V A

O

P E X I n d i r e c t e m p l

y

m e n t

O

P E X T

t

a l G V A T

t

a l e m p l

y

m e n t I n d u c e d G V A I n d u c e d e m p l

y

m e n t I n d i r e c t G V A

C

A P E X I n d i r e c t e m p l

y

m e n t

C

A P E X

Source: Oxford Economics

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European Economic Impact Report 2019 REPORT

OUR ECONOMIC IMPACT IN THE NETHERLANDS

Neptune in the Netherlands

We are the largest ofgshore operator in the Dutch sector of the North Sea.
We operate 45 licences and maintain a large infrastructure of 29 ofgshore

facilities, including four major production complexes.

We are participating in a pilot project to create the world’s fjrst ofgshore

green hydrogen production plant. The project will integrate three energy systems on one platform: ofgshore wind, ofgshore gas and hydrogen.

*based on an implied GVA multiplier of 1.9

Netherlands in numbers

Gross value added to Dutch GDP:

$400 million

For every Neptune employee in the Netherlands, around

8 jobs

are supported elsewhere in the domestic economy Every $1 GVA we directly generated supported

another $0.9

elsewhere in the Dutch economy* Total number of jobs:

3,000

The Netherlands had the highest spend on

perational goods

and services

f all four countries, mainly

driven by helicopter transport and contractor costs.

$ MILLION

Gross value added (GVA) contribution to GDP Employment

500 3,500 3,000 2,500 2,000 1,500 500 1,000 300 400 200 50 450 250 100 350 150 JOBS 337 232 75 50 76 434 996 731 950 3,014 D i r e c t G V A D i r e c t e m p l

y

m e n t I n d i r e c t G V A

O

P E X I n d i r e c t e m p l

y

m e n t

O

P E X T

t

a l G V A T

t

a l e m p l

y

m e n t I n d u c e d G V A I n d u c e d e m p l

y

m e n t I n d i r e c t G V A

C

A P E X I n d i r e c t e m p l

y

m e n t

C

A P E X

Source: Oxford Economics

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European Economic Impact Report 2019 REPORT

OUR ECONOMIC IMPACT IN GERMANY

Neptune in the Germany

Neptune businesses have had a presence in Germany for 130 years. Our

main assets are concentrated in the north German basin in the Altmark and the Rhine Valley.

Our diverse gas and liquid production portfolio includes fjelds at difgerent

stages of their lifecycle.

We supply 6.4% of Germany’s natural gas and 13% of its produced oil.

*based on an implied GVA multiplier of 3.3

Germany in numbers

Gross value added to German GDP:

$329 million

For every Neptune employee in Germany, around

6 jobs

are supported elsewhere in the domestic economy Every $1 GVA we directly generated supported

another $2.3

elsewhere in the Gernman economy* Total number of jobs:

3,500

$ MILLION

Gross value added (GVA) contribution to GDP Employment

350 4,000 3,500 3,000 2,500 2,000 1,500 500 1,000 300 200 50 250 100 150 JOBS 477 100 53 77 100 329 696 968 1,331 3,473 D i r e c t G V A D i r e c t e m p l

y

m e n t I n d i r e c t G V A

O

P E X I n d i r e c t e m p l

y

m e n t

O

P E X T

t

a l G V A T

t

a l e m p l

y

m e n t I n d u c e d G V A I n d u c e d e m p l

y

m e n t I n d i r e c t G V A

C

A P E X I n d i r e c t e m p l

y

m e n t

C

A P E X

Source: Oxford Economics

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