OKEA ASA - first quarter results 2020

OKEA ASA - first quarter results 2020  

OKEA delivered yet another quarter with no serious incidents nor leaks for its operated asset, Draugen. Strong operational performance combined with high production regularity resulted in a total net production of 19 099 (19 498) boepd in the quarter. (amounts in parentheses refer to corresponding period previous year)

“Even with implementation of strict Covid-19 precautionary measures and regulations we have managed to maintain a high production above 19 000 boepd in the first quarter”, says Erik Haugane, CEO of OKEA.

Operating income for the quarter amounted to NOK 551 (764) million. The lower income was due to lower realised prices and lower sold volumes. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter amounted to NOK 312 million.

The significant fall in market pricing of petroleum products during the quarter, resulted in non-cash impairments of NOK 634 million mainly relating to technical and ordinary goodwill. The NOK weakened significantly against the USD during the quarter which resulted in unrealised FX-losses on the outstanding USD bonds of NOK 518 million partly offset by FX-gains on USD nominated bank deposits. Net financial losses amounted to NOK -423 (-37) million.

The significant unrealised FX-losses and impairments as outlined above, resulted in a net loss before tax for the quarter of NOK -926 million (net profit of NOK 142 million).

“This quarter’s financial statements reflect the largest economic turmoil in hundred years. OKEA has a sound cash position, low production expense per boe across our portfolio and a dedicated organisation that will manage the company through these challenging times for OKEA and the industry”, says Mr. Haugane.

The first quarter results will be presented by Erik Haugane (CEO), Birte Norheim (CFO), Tor Bjerkestrand (SVP Operations) and Knut Gjertsen (SVP Projects and Technology) in a live webcast today at 08:15 CET on www.okea.no

Contact information: 

CEO Erik Haugane, +47 907 21 655

VP Investor Relations Ståle Myhre, +47 917 51 878

About OKEA

OKEA ASA is an Exploration and Production (E&P) company and operator on the Norwegian Continental Shelf with production of ~19,000 boe per day. The company aims to grow through low-cost field developments of discoveries with reserves up to 100 million boe and mergers and acquisitions (M&A). The operating organisation is built on the acquisition of the producing field Draugen in 2018.

OKEA ASA is listed on Oslo Stock Exchange under the ticker "OKEA".

More information on www.okea.no