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

European Economic Impact Report 2019 REPORT Neptune Energy’s impact on the European economy 2019 REPORT

OVERVIEW How we contribute to the economy European Economic Impact Report 2019 REPORT OUR DIRECT IMPACT OUR INDIRECT IMPACT OUR INDUCED IMPACT OUR TOTAL IMPACT The people we The money we spend with Wages spent by employees Direct + indirect + induced = employ + the GDP our suppliers who employ – ours and our suppliers – our total economic impact. operations generate. people, generate GDP in the wider economy, and use other suppliers. generating more GDP and jobs.

OUR EUROPEAN ECONOMIC IMPACT IN 2019 European Economic Impact Report 2019 REPORT OUR DIRECT IMPACT OUR INDIRECT IMPACT OUR INDUCED IMPACT OUR TOTAL IMPACT We supported an estimated We directly generated $1.4 We spent $1.1 billion on operational We spent $197 million on $2.8 billion in gross value added billion in gross value added to and capital goods and services across a employee compensation payments to GDP in the UK, Netherlands, Norway and estimate $90 million of that GDP across the UK, Netherlands, range of industries. and Germany. That’s the equivalent Norway and Germany. was spent in the consumer economy. This indirectly supported an of 0.67% of Norway’s total GDP. We employed around 1,300 people . estimated $984 million in gross Money spent by our suppliers’ We supported a total of 11,500 jobs . employees supported $420 million value added to GDP across the UK, We collected and paid more than Netherlands, Norway and Germany. in gross value added to GDP, as well That’s the equivalent of supporting $400 million in taxes. The as 4,500 jobs . eight jobs for every Neptune majority of this was direct tax to We estimate it also indirectly employee . supported 5,700 other jobs . the Norwegian government. We spent 59% of capital expenditure Note: Losses brought forward extinguished taxable on goods and services to develop and profjts in the UK. In Germany, no corporate tax was payable as the company generated taxable losses for operate our oil and gas facilities, such the period. as drilling equipment.

OUR ECONOMIC IMPACT IN THE UK European Economic UK in numbers Impact Report Gross value added (GVA) Employment contribution to GDP 2019 REPORT $ MILLION JOBS 500 3,000 Gross value Every $1 GVA we directly 450 1,180 2,779 118 438 2,500 added to UK GDP: generated supported 400 $438 another $1.5 350 2,000 million elsewhere in 94 300 the UK economy* 250 833 1,500 53 For every Neptune 200 Source: Oxford Economics Total number of jobs: 1,000 employee in the UK, around 174 150 2,800 16 jobs 605 100 500 are supported elsewhere in 50 the domestic economy 161 0 0 A X X A A t t t t t n n n n n V E E V V e e e e e P P G G G X X m m m m m O A E E t d l C a y y P y P y y c - e t o o o o o e O A - c A o l l l l l r C u T p p p p p i V A - D d m m m m m G V - n G e e e e e t I c t t t d l t a c c c e c e e e e t r e c o i r r r r d u T i i i i D d d n d d n n n I n I I I I Neptune in the UK • We are an active ofgshore operator in the UK, • We operate the Cygnus gas fjeld, the UK’s largest • We are also capable of supplying around 12% of with substantial North Sea interests in gas single producing fjeld, which supplies enough gas domestic gas needs via our operated Cygnus and production, subsea development and exploration. to support the equivalent of 1.5 million homes. Gjøa platforms. *based on an implied GVA multiplier of 2.5

OUR ECONOMIC IMPACT IN NORWAY Norway in numbers European Economic Impact Report Gross value added (GVA) Employment contribution to GDP 2019 REPORT Gross value added Every $1 GVA we directly $ MILLION JOBS to Norway GDP: generated supported 1,800 2,500 $1.6 billion another $0.8 1,600 1,027 2,282 126 1,585 This is the equivalent elsewhere in the 2,000 1,400 523 of 0.39% of Norway’s Norwegian economy* 1,200 total GDP in 2019 1,500 Norway had the 1,000 60 523 For every Neptune highest spend on 875 800 1,000 Source: Oxford Economics capital goods employee in Norway, around 600 6 jobs of all four countries. We 401 400 500 are supported elsewhere in spent the majority on drilling 200 330 the domestic economy rigs with local suppliers 0 0 A X X A A t t t t t n n n n n V E E V V e e e e e P P G G G X X Total number of jobs: A substantial m m m m m O A E E t d l C a y y P y P y y c - e t o o o o o e O A - c A o l l l l l r C u T p p p p p i V A - D 2,300 d m m m m m G V - proportion of Norway’s n G e e e e e t I c t t t d l t a c c c e c e e e e t r e c o i r r r r d u T i i i i direct GVA went into D d d n d d n n n I n I I I I taxes paid to the Norwegian government Neptune in Norway • We are the fjfth largest independent operator on the Norwegian • We have an interest in 68 licences, of which we operate 13. continental shelf. • Gjøa is our largest operated asset and was the fjrst fmoating production • Our Norwegian fjelds make up the largest proportion of our portfolio. platform in the world to be powered sustainably by onshore facilities. *based on an implied GVA multiplier of 1.8

OUR ECONOMIC IMPACT IN THE NETHERLANDS European Economic Netherlands in numbers Impact Report Gross value added (GVA) Employment contribution to GDP 2019 REPORT $ MILLION JOBS 500 3,500 Gross value added Every $1 GVA we directly 450 3,000 to Dutch GDP: generated supported 76 434 950 3,014 400 $400 million another $0.9 2,500 350 50 elsewhere in the 300 75 2,000 731 Dutch economy* For every Neptune 250 employee in the 232 1,500 200 Source: Oxford Economics Netherlands, around The Netherlands had 996 150 8 jobs 1,000 the highest spend on 100 operational goods are supported elsewhere in 500 50 and services the domestic economy 337 0 0 of all four countries, mainly A X X A A t t t t t n n n n n V E E V V e e e e e P P G G G X X m m m m m O A Total number of jobs: E E t d l C a y y P y P y y c driven by helicopter transport - e t o o o o o e O A - c A o l l l l l r C u T p p p p p i V A - D d m m m m m G V - 3,000 n G e e e e e t I c and contractor costs. t t t d l t a c c c e c e e e e t r e c o i r r r r d u T i i i i D d d n d d n n n I n I I I I Neptune in the Netherlands • We are the largest ofgshore operator in the Dutch sector of the North Sea. • We are participating in a pilot project to create the world’s fjrst ofgshore green hydrogen production plant. The project will integrate three energy • We operate 45 licences and maintain a large infrastructure of 29 ofgshore systems on one platform: ofgshore wind, ofgshore gas and hydrogen. facilities, including four major production complexes. *based on an implied GVA multiplier of 1.9

OUR ECONOMIC IMPACT IN GERMANY European Economic Germany in numbers Impact Report Gross value added (GVA) Employment contribution to GDP 2019 REPORT $ MILLION JOBS 350 4,000 Gross value added Every $1 GVA we directly 100 329 3,500 300 1,331 3,473 to German GDP: generated supported 3,000 $329 million another $2.3 250 2,500 77 elsewhere in the 200 For every Neptune employee Gernman economy* 968 2,000 in Germany, around 150 53 Source: Oxford Economics 1,500 6 jobs Total number of jobs: 100 3,500 696 100 1,000 are supported elsewhere in the domestic economy 50 500 477 0 0 A X X A A t t t t t n n n n n V E E V V e e e e e P P G G G X X m m m m m O A E E t d l C a y y P y P y y c - e t o o o o o e O A - c A o l l l l l r C u T p p p p p i V A - D d m m m m m G V - n G e e e e e t I c t t t d l t a c c c e c e e e e t r e c o i r r r r d u T i i i i D d d n d d n n n I n I I I I Neptune in the Germany • Neptune businesses have had a presence in Germany for 130 years. Our • Our diverse gas and liquid production portfolio includes fjelds at difgerent main assets are concentrated in the north German basin in the Altmark stages of their lifecycle. and the Rhine Valley. • We supply 6.4% of Germany’s natural gas and 13% of its produced oil. *based on an implied GVA multiplier of 3.3