OKEA fourth quarter 2023 trading update - OKEA

OKEA fourth quarter 2023 trading update

(Trondheim, 1 February 2024) OKEA ASA (OSE: OKEA) will publish its financial report for the fourth quarter of 2023 on Thursday 8 February at 06:00 (CET). This trading update is provided to summarise production and sales volumes and related topics and updates for the quarter.


Attached files:

(Amounts in parentheses refer to previous quarter)

Fourth quarter 2023 production and sales

Unit Q4 2023*** Q3 2023*** FY 2023***
Total operating income MNOK 2,118 2,105 8,885
Realised liquids price USD/boe* 83.4 89.0 80.1
Realised gas price USD/boe* 74.6 61.9 82.2
Net production Boepd 30,082 23,710 24,586
Net production – liquids Boepd 22,742 18,012 18,507
Net production – gas Boepd 7,340 5,698 6,078
Third-party volumes available for sale Boepd 292 210 567
Over/underlift/inventory adjustments Boepd -4,739 2,769 3,070
Net sold volume** Boepd 25,635 26,689 28,224
Net sold volumes – liquids Boepd 17,656 20,465 21,701
Net sold volumes – gas** Boepd 7,979 6,224 6,522
Unit Q4 2023 Q3 2023 FY 2023
Cash and cash equivalents MNOK 2,301 2,346 2,301
Interest bearing bond MNOK 1,246 1,300 1,246

*            Boe – barrels of oil equivalents

**          Includes received compensation volumes from Duva and Nova (tie-in to Gjøa)

***        Volumes and key figures relating to the income statement do not include contributions from Statfjord prior to closing on 29 December 2023

Quarterly production highlights

Record high production of 30.1 (23.7) kboepd in the quarter largely due to strong performance from operated assets. Production at Draugen increased by 50% compared to previous quarter mainly driven by Hasselmus and high production availability. Production at Brage increased by 41% due to continued good performance from the Talisker East well and new wells brought on stream. Production at Yme also increased following a successful recompletion of a production well and production at Gjøa, Ivar Aasen and Nova were stable throughout the quarter.

Production from Statfjord in 2023 was not included in OKEA’s key figures or income statement prior to closing on 29 December 2023. Statfjord produced 10.8 kboepd net to OKEA in 2023, resulting in a total production for OKEA’s portfolio of 35.4 kboepd.

Goodwill impairment relating to the Statfjord transaction

As detailed in the press release published on 29 December 2023, updated projections from the Statfjord license indicated a downward revision of volumes combined with an increase in cost. The reduction in volumes was mainly due to production regularity and well performance and most significant in the near term. An impairment charge for ordinary goodwill in the range of NOK 1,300-1,450 million will be recognised in the financial statements for the quarter. As a goodwill impairment, the impact will be the same before and after tax.

Impairment of the Yme asset
As Yme is carried at fair value, any adjustments to asset performance and/or macro assumptions result in impairments or reversal of previous impairments. Mainly due to reduced forward prices for crude oil during the quarter, estimated impairment charge on the Yme asset amounts to NOK 450 – 550 million (NOK 100 – 120 million after tax).

The information contained in this statement is based on a preliminary assessment of the company’s fourth quarter 2023 financial and operational results and may be subject to change. 

Fourth quarter 2023 financial report to be published on 8 February
OKEA will release its fourth quarter 2023 results on Thursday 8 February at 06:00 CET. A presentation of the results will be held on the same day through a webcast and audioconference starting 11:00 CET (Link to webcast). The presentation will be held by Svein J. Liknes (CEO) and Birte Norheim (CFO).