OKEA ASA (OSE: OKEA) will publish its financial report for the first quarter of 2023 on Thursday 4 May at 06:00 (CET). This trading update is provided to summarise production and sales volumes and related topics and updates for the quarter.
(Amounts in parentheses refer to previous quarter)
First quarter 2023 production and sales
| |
Unit |
Q1 2023 |
Q4 2022 |
| Total operating income |
MNOK |
2,954 |
1,664 |
| Realised liquids price |
USD/boe* |
77.7 |
95.2 |
| Realised gas price |
USD/boe* |
116.3 |
112.6 |
| Net production |
Boepd |
22,210 |
19,887 |
| Net production – liquids |
Boepd |
16,592 |
14,420 |
| Net production – gas |
Boepd |
5,618 |
5,467 |
| Third-party volumes available for sale |
Boepd |
448 |
633 |
| Over/underlift/inventory adjustments |
Boepd |
15,283 |
-4,198 |
| Net sold volume** |
Boepd |
37,941 |
16,322 |
| Net sold volumes – liquids |
Boepd |
32,139 |
10,518 |
| Net sold volumes – gas** |
Boepd |
5,802 |
5,804 |
| |
Unit |
Q1 2023 |
Q4 2022 |
| Cash and cash equivalents end of quarter |
MNOK |
1,634 |
1,104 |
| Interest bearing bond end of quarter *** |
MNOK |
1,225 |
1,178 |
* Boe – barrels of oil equivalents
** Includes compensation volumes from Duva and Nova received (tie-in to Gjøa)
*** Interest bearing bond is USD 120 million; the difference in NOK between quarters relates to currency exchange
Financial position
In March, OKEA distributed cash dividends of NOK 104 million to its shareholders (NOK 1.00 per share). Cash and cash equivalents at the end of the quarter amounted to NOK 1,634 (1,104) million and interest bearing bond debt amounted to NOK 1,225 (1,178) million.
Realised prices
The average realised liquids price was USD 77.7 per boe and the average realised price for gas was USD 116.3 per boe. The high realised gas price was largely attributable to forward sales. USD 21.6 per boe of the realised gas price in the quarter was attributable to gain on fixed price contracts.
Impairment of the Yme asset
Estimated impairment charge on the Yme asset was NOK 75 – 125 million (NOK 17 – 28 million after tax). The impairment charge was due to higher water-cut development than expected in the wells already on production, somewhat reducing expected recoverable oil reserves.
2023 guiding
Production and capex guidance for 2023 remain unchanged with production at 22,000-25,000 boepd and capex guidance at NOK 1,700-2,100 million. Capex guidance excludes capitalized interest and exploration capex and both production and capex guiding exclude effects relating to the Statfjord transaction.
Disclaimer
The information contained in this statement is based on a preliminary assessment of the company’s first quarter 2023 financial and operational results and may be subject to change.
First quarter 2023 financial report to be published on 4 May
OKEA ASA will release its first quarter 2023 results on Thursday 4 May at 06:00 CEST. A presentation of the results will be held on the same day through a webcast and audioconference starting 10:00 CEST (Link to webcast). The presentation will be held by Svein J. Liknes (CEO) and Birte Norheim (CFO).