Noreco announces its results for the first quarter of 2022
Oslo, Norway, May 10, 2022 /PRNewswire/ — Norwegian Energy Company ASA (“Noreco” or the “Company”) today announced its results for the first quarter of 2022. The quarter delivered both strong production of 28.5 mbepd and financial results with income of $179 million and an EBITDA of $107 million.
- Hydrocarbon production of 28.5 mbepd
- Total revenue from $179 millionwhich compares to $105 million in the first quarter of 2021
- EBITDA of $107 millioncompared to $29 million at the same period in 2021
- Net cash of $87 million and cash on the balance sheet of $147 million
Net hydrocarbon production for the quarter of 28.5 mbepd is above the annual range of 23.5 to 25.5 mbepd. Strong production was mainly driven by above-expected performance at Dan and Gorm and continued overall positive development across all production hubs with operating efficiency at 92.6%. Well interventions and optimization initiatives will continue into 2022 and as such the company has raised its annual production guidance to 24.5 – 26.5 mbpd.
The Tyra redevelopment project made significant progress during the first quarter, with the navigation of the Tyra West topsides and Tyra’s utilitarian and living quarters (the “Accommodation Unit” or “TEH”) and a successful offshore lifting and installation campaign. Seven out of eight platforms are now in place, bringing the project closer to the first gas planned for the second quarter of 2023.
The financial result for the first quarter shows a continued strong development compared to the previous quarter, with revenues of $179 millionand an EBITDA of $107 million. The Company had a total cash position of $247 million at the end of the quarter, with cash on the balance sheet of $147 million and available RBL capacity not drawn from $100 million.
During the first quarter, Noreco’s financial situation has strengthened considerably. In addition, the Tyra redevelopment project continues to progress on schedule, further increasing confidence regarding the Q2 2023 start date. Share price performance and volumes were also strong. In addition to its RBL financing, Noreco’s capital structure includes both the NOR14 senior unsecured bond and the NOR13 convertible bond. In light of the Company’s improved financial position and outlook, Noreco intends to engage in due course with investors to explore measures to simplify and improve its capital structure, involving in particular the completion of the bond modifications necessary to facilitate a refinancing of NOR13, and has engaged Arctic Securities and Pareto Securities in this regard.
The Company will host an earnings call today at 11:00 a.m. CET.
To join the audiocast: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220510_10
Catherine TorgersenEVP Investor Relations & ESG
Telephone: +47 91 52 85 01
E-mail: [email protected]
This information is considered inside information under the EU Market Abuse Regulation and is subject to disclosure requirements under Section 5-12 of the Norwegian Securities Act. The scholarship announcement was published by Catherine TorgersenExecutive Vice President Investor Relations & ESG, Norwegian Energy Company ASA, on the date and at the time indicated above.
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