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Noreco today published its second quarter 2022 results, with the quarter
delivering strong underlying asset performance and production at top end of the
Company’s annual guidance, and the strongest financial results since the
acquisition of Shell’s Danish upstream assets in 2019.
Highlights:
. Hydrocarbon production of 26.5 mboepd
. Total Revenues of USD 265 million, compared to USD 179 million in Q1 2022
. EBITDA of USD 167 million, compared to USD 107 million in previous quarter
. Cash flow from operating activities of USD 183 million, with Free Cash Flow
(Pre-Investments) of USD 156 million
. Total liquidity of USD 342 million at the end of the quarter with cash on
balance sheet of USD 242 million
Net hydrocarbon production for the quarter of 26.5 mboepd is at top end of the
annual guidance range of 24.5 - 26.5 mboepd. The strong production trend of
2022 continues in second quarter, with Noreco’s currently producing hubs
delivering overall operating efficiency of 91%.
The Tyra Redevelopment project made significant progress during the quarter, and
in April Noreco announced the successful offshore lift and installation campaign
of the three Tyra West wellhead and riser platforms, the TEH Accommodation
module and two bridges. Over a period of ten days, the world’s largest crane
vessel, Sleipnir, safely lifted and installed the units in position at the Tyra
field. This concluded the 2022 spring offshore campaign moved the project closer
to first gas with seven out of eight platforms in position.
In May, the board of directors of Noreco appointed Euan Shirlaw as Chief
Executive Officer. Mr Shirlaw joined Noreco in 2019 as Chief Financial Officer,
and had previously served as Acting Managing Director since November 2021.
The financial result for second quarter shows a continued strong development
with revenues of USD 265 million, and EBITDA of USD 167 million. Noreco in the
period generated Free Cash Flow (Pre-Investments) of USD 156 million and total
Free Cash Flow of USD 95 million. The Company had total liquidity of USD 343
million at the end of the quarter, with cash on balance sheet of USD 243 million
and available undrawn RBL capacity of USD 100 million. The cash flow generation
from the producing assets is the strongest since the closing the acquisition of
Shell’s Danish upstream assets in 2019 and Noreco continues to be fully funded
to deliver Tyra II, with significant headroom based on current commodity price
levels.
“During the first half of 2022 we demonstrated the significant value proposition
of our underlying business with positive operational delivery translating into
some of the strongest financial performance since we closed the acquisition of
Shell’s Danish upstream interests in 2019. While we continue to focus on
delivering the start-up of Tyra II mid next year, the results this quarter show
the material contribution from our three hubs currently on production. The
current commodity price environment is expected to continue to enhance the
robust position of Noreco, and this will see a further positive step-change once
Tyra II is onstream. As a gas hub that will produce approximately 60mboepd and
unlock more than 200 mmboe of gas-weighted potential, Tyra II not only supports
the next stage of Noreco’s delivery, but also has an important role to play in
safeguarding energy security in the EU for decades to come,” said Euan Shirlaw,
Chief Executive Officer of 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 11:00 CEST.
To join audiocast:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220712_4
Contact:
Cathrine Torgersen, EVP Investor Relations & ESG
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 & ESG, Norwegian Energy Company ASA, at the date and time as
set out above.
About Norwegian Energy Company ASA
Noreco is a publicly owned company with focus on the oil, gas and offshore
industry. The Company’s shares are listed on the Oslo Stock Exchange with
ticker: “NOR”. For further information, please visit: www.noreco.com.
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