European Economic Impact Report

2019 REPORT

Neptune Energy’s impact on the European economy2019 REPORT

European Economic Impact Report

2019 REPORT

OVERVIEW

How we contribute to the economy

OUR DIRECT IMPACT

The people we employ + the GDP our operations 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 = our total economic impact.

OUR INDIRECT IMPACT OUR INDUCED IMPACT OUR TOTAL IMPACT

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 profits 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 on goods and services to develop and operate 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 of 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

European Economic Impact Report

2019 REPORT

OUR ECONOMIC IMPACT IN THE UK

Neptune in the UK• We are an active offshore operator in the UK,

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

• We operate the Cygnus gas field, the UK’s largest single producing field, 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

0 0

JOBS

161

174

53

94

118 438

605

833

1,180 2,779

Direct G

VA

Direct e

mploym

ent

Indirect G

VA - OPEX

Indirect e

mploym

ent

- OPEX

Tota

l GVA

Tota

l em

ployment

Induced GVA

Induced employm

ent

Indirect G

VA - CAPEX

Indirect e

mploym

ent

- CAPEX

Sour

ce: O

xfor

d Ec

onom

ics

European Economic Impact Report

2019 REPORT

2,500

OUR ECONOMIC IMPACT IN NORWAY

Neptune in Norway• We are the fifth largest independent operator on the Norwegian

continental shelf.

• Our Norwegian fields 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 first floating 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 billionThis is the equivalent of 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 of 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

0 0

JOBS

330

875

60

523

126 1,585

401

523

1,027 2,282

Direct G

VA

Direct e

mploym

ent

Indirect G

VA - OPEX

Indirect e

mploym

ent

- OPEX

Tota

l GVA

Tota

l em

ployment

Induced GVA

Induced employm

ent

Indirect G

VA - CAPEX

Indirect e

mploym

ent

- CAPEX

Sour

ce: O

xfor

d Ec

onom

ics

European Economic Impact Report

2019 REPORT

OUR ECONOMIC IMPACT IN THE NETHERLANDS

Neptune in the Netherlands• We are the largest offshore operator in the Dutch sector of the North Sea.

• We operate 45 licences and maintain a large infrastructure of 29 offshore facilities, including four major production complexes.

• We are participating in a pilot project to create the world’s first offshore green hydrogen production plant. The project will integrate three energy systems on one platform: offshore wind, offshore 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

operational goods and services of 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

0 0

JOBS

337

232

75

50

76 434

996

731

950 3,014

Direct G

VA

Direct e

mploym

ent

Indirect G

VA - OPEX

Indirect e

mploym

ent

- OPEX

Tota

l GVA

Tota

l em

ployment

Induced GVA

Induced employm

ent

Indirect G

VA - CAPEX

Indirect e

mploym

ent

- CAPEX

Sour

ce: O

xfor

d Ec

onom

ics

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 Altmarkand the Rhine Valley.

• Our diverse gas and liquid production portfolio includes fields at differentstages 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 German 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

0 0

JOBS

477

100

53

77

100 329

696

968

1,331 3,473

Direct G

VA

Direct e

mploym

ent

Indirect G

VA - OPEX

Indirect e

mploym

ent

- OPEX

Tota

l GVA

Tota

l em

ployment

Induced GVA

Induced employm

ent

Indirect G

VA - CAPEX

Indirect e

mploym

ent

- CAPEX

Sour

ce: O

xfor

d Ec

onom

ics