OSLO, Norway, Oct. 28, 2021 /PRNewswire/ -- Norwegian Energy
Company ASA ("Noreco" or the "Company") today announced its third
quarter 2021 results. A strong third quarter delivered production
of 27.2 mboepd, generating revenues of USD
150 million and adjusted EBITDA of USD 67 million.
Highlights:
- Hydrocarbon production of 27.2 mboepd
- Total Revenues of USD 150 million
compared to USD 135 million in
previous quarter
- Adjusted EBITDA of USD 67 million
versus USD 60 million in Q2
- Net result for the period of USD 3
million compared to negative USD 20
million in Q2
- A positive net cash flow from operating activities of
USD 84 million versus USD 19 million in the second quarter
Net hydrocarbon production for the quarter of 27.2 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 earlier this year, delivering positive results
on operating performance also during the third quarter. Activity
levels on the Tyra project continue to be high, and during the
quarter the Company took delivery of the Tyra East topsides from
Sembcorp followed by a successful offshore installation at the Tyra
field.
In September, the Company announced Project Bifrost, a Danish
Underground Consortium ("the DUC") partnership with Ørsted and DTU.
Project Bifrost will focus on progressing the potential for Carbon
Capture & Storage in Denmark
and in specific the potential for CO2 transport and storage at the
Harald field with expected startup storage capacity of 3 million
tons of CO2 per year (m/tpa).
The financial result for third quarter continues to strengthen
quarter on quarter, with revenues of USD 150
million and adjusted EBITDA of USD 67
million. The Company had total liquidity of USD 252 million at the end of third quarter, with
cash on balance sheet of USD 152
million and available undrawn RBL capacity of USD 100 million. During the quarter, a successful
written resolution was obtained from bondholders of NOR14 to amend
certain covenants providing the Company with further headroom.
Noreco also entered into a USD 1.0
billion swap transaction to fix interest rate exposure under
the RBL facility
David Cook, Noreco's Chief
Executive Officer stated, "Across our business we continue to
deliver in line with expectations. Our visibility on the Tyra
project's progress is positive, and upon start-up the delivery from
this world-class gas hub is a game-changer. We are reaping the
benefits of strong operating performance as well as the current DUC
wells program. And we are furthering our focus on the energy
transition with the announcement of Project Bifrost. All this, plus
the strong commodity macro, the support of the Danish North Sea
Agreement and our own enviable resource position in the DUC define
forward-looking potential within which we are
well-positioned."
"Compared to the beginning of the year, operational
performance has improved significantly, and the Noble Sam Turner
rig program continued to make a positive impact. So far in 2021 we
have had five workovers completed, adding more than 5000 bpd. The
Tyra Redevelopment project is progressing towards first gas, and
further de-risked when the Tyra East Wellhead & Riser Platforms
were delivered and installed during the quarter. In addition, we
have now locked-in the 2022 sail away dates for the remaining
fabrication of the project," said John Hulme, Chief Operating Officer in
Noreco
"In addition to a quarter of strong
underlying financing performance, we also further secured pre-Tyra
flexibility in our capital structure. During Q3 we obtained a
successful written resolution from our NOR14 bondholders, improving
certain covenants and providing sufficient leverage covenant
headroom. This, in addition to significant pre-Tyra price hedging,
ensures our capital position is set to deliver the Tyra
Redevelopment in a wide range of future market scenarios. At
start-up, Tyra unlocks a real step-change for the Company and our
stakeholders. With an expected production increase of 90 percent
and a significantly increased gas exposure, the redeveloped project
materially enhances 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 08:00 CEST.
To join audiocast:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20211028_4
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
This information is considered to be inside information pursuant
to the EU Market Abuse Regulation, and is subject to the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.
The stock exchange announcement was published by Cathrine Torgersen, Executive Vice President
Investor Relations & Communications, Norwegian Energy Company
ASA, at the date and time as set out above.
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/noreco/r/noreco-announces-third-quarter-2021-results,c3442048
The following files are available for download:
https://mb.cision.com/Main/4225/3442048/1487542.pdf
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Norwegian Energy
Company ASA - Q3 2021 Report
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https://mb.cision.com/Public/4225/3442048/a5d5de3ccb972baa.pdf
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Noreco Q3 2021
Investor Presentation
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