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Key Elements of Financial Policy
Source: Company filing.
(1) Farm-out completion subject to pre-emption rights and government approvals. (2) Represents operating cash flow before change in working capital.
Low Cost Operator with Prudent Capital
Structure
Key Leverage Metrics
OCF
(2)
/ Interest Expense
Net Debt / OCF
(2)
Funding policy aimed at ensuring that sufficient
facilities are available to support business plan
3-year plan and 12-month budgeting process
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 2016
(1)
Investment opportunities evaluated based on NPV,
investment efficiency and payback period
Targeting primarily operated assets, allowing
control of pace and quantum of spending
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
12.6x
1
28.9x
19.9x
14.2x
8.2x
8.2x
2011 2012 2013 2014 2015 2016
0.1x
0.6x
0.8x
0.8x
3.3x
4.2x
2011 2012 2013 2014 2015 2016