Noreco Announces Second Quarter 2021 Results

13 July
2021, Q3

Oslo, 13 July 2021: Norwegian Energy Company ASA ("Noreco" or the "Company") today announced its second quarter 2021 results. The strong second quarter results delivered production of 27.3 mboepd, generating revenues of USD 135 million and adjusted EBITDA of USD 60 million. 
 
Highlights: 

  • Hydrocarbon production of 27.3 mboepd 
  • Total Revenues of USD 135 million compared to USD 105 million in previous quarter 
  • Adjusted EBITDA of USD 60 million versus USD 31 million in Q1 
  • A positive net cash flow from operating activities of USD 18 million compared to a negative net cash flow of USD 122 million in first quarter 

 
Net hydrocarbon production for the quarter of 27.3 mboepd is in the upper range of annual guidance of 25.5 – 27.5 mboepd. The Noble Sam Turner drilling program commenced a planned well workover and maintenance campaign this spring, delivering positive results on operating performance during the second quarter. Activity levels on the Tyra project continue to be high with the fabrication of topsides close to sail away from Sembcorp Marine and progress being made towards first production in Q2 2023. 
 
The financial results for second quarter were significantly stronger than the previous quarter, with revenues of USD 135 million and adjusted EBITDA of USD 60 million. The Company had total liquidity of USD 245 million at the end of second quarter, with cash on the balance sheet of USD 145 million and available undrawn RBL capacity of USD 100 million. In May, Noreco announced the successful closing of an USD 1.1 billion RBL facility that matures in 2028. This is an amendment of the Company’s existing USD 900 million facility which provides access to significant additional liquidity, while at the same time as deferring amortisation payments to the second half of 2024. 
 
“Quarter on quarter, operational performance has improved significantly, and the Noble Sam Turner rig program continued to make a positive impact with three well workovers completed during the quarter, adding more than 2000 bpd. The Tyra Redevelopment project is progressing towards first gas, and will further de-risk as Tyra East Wellhead & Riser Platforms are preparing for sail away this summer,” said John Hulme, Chief Operating Officer in Noreco     
 
 
“In addition to a quarter of strong underlying financing performance, we significantly strengthened our capital structure during the period. The successful completion of the RBL refinancing process ensured the Company is fully funded to Tyra first production at oil prices below USD 55 per bbl. We also announced a covenant amendment process for NOR14 and, with the prior support of more than two thirds of the bondholders, concluding this will ensure our capital position is set to deliver the Tyra Redevelopment. At start-up, this unlocks a real step-change for the Company and our stakeholders, with an expected production increase of 90 percent materially enhancing our free cash flow generation potential,” said Euan Shirlaw, Chief Financial Officer in Noreco. 
 
 
The report and investor presentation may be downloaded from the Company's website www.noreco.com or www.newsweb.no. 
 
The Company will host an earnings call today at 12:00 CEST. 
 
To join audiocast: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20210713_2 
 
 
 
 
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Contacts: 
Euan Shirlaw, Chief Financial Officer 
Phone: +44 7979 690622 
Email: es@noreco.com 
 
Cathrine Torgersen, EVP Investor Relations & Communications 
Phone: +47 91 52 85 01 
Email: ct@noreco.com