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12.6x
1
28.9x
19.9x
14.2x
8.2x
8.2x
9.4x
2011 2012 2013 2014 2015 2016 YTD-Sept
2017
0.1x
0.6x
0.8x
0.8x
3.3x
4.2x
3.7x
2011 2012 2013 2014 2015 2016 YTD-Sept
2017
Key Elements of Financial Policy
Source: Company filing.
(1) Represents operating cash flow before change in working capital.
Key Leverage Metrics
OCF
(1)
/ Interest Expense
Net Debt / OCF
(1)
o
Funding policy aimed at ensuring that sufficient
facilities are available to support business plan
▪
3-year plan and 12-month budgeting process
o
Active portfolio management to optimise cash flows
▪
Sale of 10% interest in Block 9 in 2015
▪
Sale of 15% revenue WI / 20% cost WI in Siba
in 2017
▪
Sale of 25% interest in Abu Sennan in 2017
o
Investment opportunities evaluated based on NPV,
investment efficiency and payback period
▪
Targeting primarily operated assets, allowing
control of pace and quantum of spending
o
No commodity price hedging or borrowings at floating
interest rates
▪
Revenue is typically priced in USD, the
company’s functional and presentational
currency
▪
Large portion of funded debt carries a fixed
interest rate
25
Low Cost Operator with Prudent Capital Structure