OKEA First Quarter 2023 Trading Update

Source Press Release
Company OKEA ASA 
Tags Production/Development, Exploration, Upstream Activities, Capital Spending, Guidance, Financial & Operating Data
Date April 27, 2023

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.

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).

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd