Noreco announces first quarter 2020 results

20 May
2020, Q2

Oslo, 20 May 2020: Norwegian Energy Company ASA (“Noreco” or “the Company”) today announced its result for the first quarter of 2020. 
 
The first quarterly results demonstrated a Company resilience, both financial and operational. Noreco’s financial performance was unaffected by recent volatility with an adjusted EBITDA of USD 105 million and a robust liquidity position with cash and cash equivalents of USD 273 million at the end of the first quarter. Net hydrocarbon production was 31.9 mboepd and in line with Company guiding.

Highlights: 

•    Net production of 31.9 thousand barrels of oil equivalents per day ("mboepd")
•    Adjusted EBITDA of USD 105 million 
•    Cash flow from operating activities of USD 62 million 
•    Increase of 2P reserves from 195mmboe at the end of 2018 to 209 at the end of 209 

The financial figures for the first quarter were strong, where price and volume protection supported revenues of USD 148 million, a realised liquids price of USD 72 per barrel and cash flow from operating activities of USD 62 million. Despite challenging market conditions, no impairment of the Company’s assets was required following testing in the current environment. During the first quarter Noreco executed buy-back of 345,917 shares.  
 
The operational performance of the Company continued to be solid in the first quarter with a net production of 31.9 mboepd, and Halfdan reached a formidable operating efficiency of 97 percent in the period. In line with Noreco’s ambition to more than replace its reserves, the Company increased its 2P reserves from 195 mmboe at the end of 2018 to 209 mmboe at the end of 2019. When the scope of the COVID-19 outbreak became apparent in March, proactive approach was taken by the DUC operator to mitigate the impact of the pandemic and safeguard business continuity.

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

The Company will present its quarterly results in a webcast today at 12:00 CEST. 
To join webcast:  https://channel.royalcast.com/webcast/hegnarmedia/20200520_1/