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impairments with a post-tax effect of USD 47 (32) million. Net cash position was
at solid USD 123 (42) million. Based on continued solid production, guidance for
2025 is increased to 32 - 33 kboepd.
(Amounts in parentheses refer to previous quarter)
“We continue to deliver on and above plan on our operated assets and made a
significant discovery with the Talisker exploration well at Brage. Production
was solid, with the additional volumes produced from the new Sognefjord East
well on Brage offsetting planned maintenance at other assets. On the other hand,
the quarterly result is adversely impacted by reserve reductions and increased
future cost estimates at Statfjord and reserve reduction in the Hasselmus
tieback to Draugen. Thisresulted in impairments on Statfjord and Draugenassets
which significantly impacts the bottom line for the third quarter”, stated OKEA
CEO, Svein J. Liknes.
Third quarter 2025 summary
Net production was 31.7 (31.7) kboepd. Production from the new Sognefjord East
well at Brage offset the impact of maintenance on other assets.
Sold volumes amounted to 36.3 (33.0) kboepd The average realised crude price
was USD 70.6 (68.4) per boe. Average realised NGL price was USD 41.2 (47.0) per
boe, resulting in an average realised liquids price of USD 65.3 (63.1) per boe.
The average realised price for gas was USD 65.7 (71.4) per boe, of which a gain
of USD 4.6 (5.6) per boe was attributable to hedging. Total operating income
amounted to USD 224 (206) million.
Total operating expenses amounted to USD 77 (74) million, corresponding to USD
24.5 (23.5) per boe. The increased cost was mainly due to maintenance work at
Statfjord, Gjøa/Nova and Draugen. Changes in over-/underlift positions and
production inventory resulted in an expense of USD 19 (8) million as sold
volumes exceeded produced volumes.
Impairments of oil and gas assets of USD 133 (0) million on Statfjord and
technical goodwill of USD 18 (32) million mainly due to reduced recoverable
reserves at Draugen and Statfjord as well as future cost reductions considered
less likely on Statfjord. Related post-tax effect was USD 47 (32) million.
Tax income was USD 62 (expense 26) million, and net loss after tax ended at USD
37 (21) million.
Cash flow generated from operations was a solid USD 186 (7) million, and cash
and cash equivalents ended at USD 377 (423) million. In addition to the cash
balance, USD 42 (41) million was placed in money market funds. Following
settlement of the USD 125 million OKEA04 bond loan in July, interest-bearing
bond loans was reduced to USD 295 (422) million, which brings the net cash
position up to USD 123 (42) million.
Updated guidance
Based on continued solid production, production guidance for 2025 is increased
and narrowed to 32-33 kboepd from 30-32 kboepd. Production guidance for 2026
remain unchanged at 31-35 kboepd. Capex guidance for 2025 and 2026 remain
unchanged at USD 350 - 380 million and USD 300 - 360 million respectively.
Webcast and audio conference
A presentation of the results will be held today through a webcast and audio
conference starting 10:00 CET. The presentation will be held by Svein J. Liknes
(CEO) and Birte Norheim (CFO).
The webcast can be followed at www.okea.no
or OKEA Webcast
Q (https://channel.royalcast.com/landingpage/hegnarmedia/20251104_1/)3 (https://c
hannel.royalcast.com/landingpage/hegnarmedia/20251104_1/)2025
(royalcast.com) (https://channel.royalcast.com/landingpage/hegnarmedia/20251104_1
/)
Dial in details for the audio conference:
NO: +47 2195 6342
DK: +45 7876 8490
SE: + 46 8 1241 0952
UK: +44 203 769 6819
US: +1 646-787-0157
PIN Code: 681934
For further information, please contact:
Stig Hognestad, VP Investor Relations
stig.hognestad@okea.no
+47 902 59 040
About OKEA
OKEA ASA is a leading mid- and late-life operator on the Norwegian continental
shelf (NCS). OKEA finds value where others divest and has an ambitious strategy
built on growth, value creation and capital discipline.
OKEA is listed on the Oslo Stock Exchange (OSE:OKEA)
More information at www.okea.no
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