Second Quarter 2023 Financial Results

Source Company Press Release
Company OKEA ASA
Tags Corporate: Corporate Results, Country: Norway, Financial - Costs & Metrics: Capital Expenditures, Hedging, Upstream: Drilling Activity, Upstream News
Date July 13, 2023

OKEA ASA (OSE: OKEA) delivered net cash flow from operations of NOK 1,401 (1,318) million, operating income of NOK 1,707 (2,954) million and EBITDA of NOK 1,167 (1,592) million in the second quarter of 2023. Net profit after tax amounted to NOK 69 (226) million.

“Production performance was good and OKEA generates a solid cash contribution again this quarter. The Hasselmus project and drilling activities at Brage, Nova and Draugen are all progressing according to plan. Production from the Talisker East well started in May and increased production at Brage by 60% during the quarter. With new wells coming onstream and major maintenance work completed, we expect production to increase in the second half of the year. The acquisition of 28% in the Statfjord Area from Equinor is progressing towards completion in the fourth quarter and will further add to our portfolio in line with the growth strategy”, said OKEA CEO Svein J. Liknes.

Second quarter 2023 summary

Net production to OKEA in the second quarter was 22,263 (22,210) boepd. Production performance at Brage, Gjøa and Ivar Aasen remains strong and performance at Yme and Nova is improving. Production at Draugen was impacted by the planned turnaround which was completed in May.

Sold volumes in the quarter amounted to 22,782 (37,941) boepd. The decrease compared to previous quarter was mainly due to recovery of a significant underlift position in the previous quarter. Compensation volumes from Duva and Nova amounted to 332 (448) boepd.

The average realised liquids price was USD 70.1 (77.7) per boe and the average realised price for gas was USD 81.2 (116.3) per boe. USD 23.3 (21.1) per boe of the realised gas price was attributable to gain on fixed price contracts.

Other operating income/loss (-) amounted to NOK 66 (25) million and comprises tariff income at Gjøa of NOK 39 (32) million, change in fair value of the contingent consideration to Wintershall Dea of NOK 18 (-16) million, income from joint utilisation of logistic resources of NOK 8 (3) million and a net gain from financial oil and gas hedging of NOK 5 (6) million.

An impairment charge of NOK 300 (94) million was recognised on the Yme asset. The impairment was driven by adverse developments in expected realised prices. As Yme is carried at fair value, any adjustments to asset performance and/or macro assumptions will result in impairments or reversal of previous impairments also going forward.

Exploration and evaluation expenses amounted to NOK 124 (24) million, of which NOK 80 million related to seismic purchases. General and administrative expenses were NOK 47 (28) million and included NOK 15 million in advisor fees related to business development activities.

At the end of the quarter, cash and cash equivalents amounted to NOK 2,335 (1,634) million. Remaining outstanding bonds were NOK 1,293 (1,255) million.

OKEA paid dividend of NOK 104 (104) million in the quarter. The board of directors has approved a cash dividend of NOK 1.00 per share for the third quarter of 2023, which will be paid in September. The board of directors also reaffirmed its intention to distribute NOK 1.00 per share in the fourth quarter of 2023.

Webcast and audioconference
A presentation of the results will be held today through a webcast and audioconference starting 10:00 CET. The presentation will be held by Svein J. Liknes (CEO) and Birte Norheim (CFO).

The webcast can be followed at okea.no
or OKEA Webcast Q2 2023 (royalcast.com)

Dial in details for the audioconference:
NO: +47 2195 6342
DK: +45 7876 8490

SE: + 46 8 1241 0952

UK: +44 203 769 6819
US: +1 646-787-0157

PIN Code: 681934

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd