Noreco announces fourth quarter 2019 results

25 February
2020, Q1

Oslo, 25 February 2020: Norwegian Energy Company ASA (“Noreco”) today announced its result for the fourth quarter of 2019.

The fourth quarter result was the first full quarter reflecting the acquisition of Shell Olie- og Gasudvinding Danmark B.V. and the successful shut-in of Tyra as part of the redevelopment plan. Halfdan, Gorm and Dan contributed to a stable production of 31.7 mboepd, in line with Company guidance.

Highlights
•    Net production of 31.7 thousand barrels of oil equivalents per day ("mboepd"), post shut-in of Tyra
•    Adjusted EBITDA of USD 116 million
•    Cash flow from operating activities of USD 87 million
•    Net profit for the period after tax of USD 44 million
 

The financial figures for the fourth quarter reflect a strong contribution from the Company’s Danish Underground Consortium (“DUC”) assets. Cash flow from operating activities was USD 87 million and adjusted EBITDA was USD 116 million (EBITDA 59 million). The Company issued a USD 175 million senior unsecured bond issue during the quarter which was significantly oversubscribed by international investors. In addition, Noreco improved the terms of its RBL facility, providing the Company with additional financial flexibility.

The operational performance of the Company proved to be solid in the fourth quarter with several planned maintenance campaigns successfully executed. Net production of 31.7 mboepd was in line with previous Company guidance, and Gorm reached a formidable operating efficiency of 96.8 percent in December following a planned maintenance campaign in November. The existing Tyra modules are to be decommissioned in 2020 and fabrications related to the redevelopment project are progressing as planned and within budget.

The report may be downloaded from the Company’s website www.noreco.com or www.newsweb.no.

The Company will host a presentation of its quarterly results today 08:00 CET at Hotel Continental.

To join webcast: https://channel.royalcast.com/webcast/hegnarmedia/20200225_1/