In This Article:
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Production: 37,300 barrels of oil equivalent per day.
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Net Impairment Income: NOK871 million.
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Revenue: NOK2.944 billion.
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Operating Income: NOK2.926 billion.
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Net Profit: NOK277 million.
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Cash and Cash Equivalents: NOK3.6 billion.
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Net Liquidity Position: Approximately NOK1.3 billion.
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Production Expense: NOK790 million, equivalent to NOK233 per barrel.
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Average Realized Liquid Price: $74.9 per barrel.
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Average Realized Gas Price: $68.9 per barrel, including a gain of $10.4 from hedging contracts.
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CapEx Guidance for 2024: NOK3.2 billion to NOK3.5 billion.
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CapEx Guidance for 2025: NOK3.2 billion to NOK3.7 billion.
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CapEx Guidance for 2026: NOK3.2 billion to NOK3.8 billion.
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Production Guidance for 2025: 28,000 to 32,000 barrels per day.
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Production Guidance for 2026: 26,000 to 30,000 barrels per day.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Okea ASA (STU:3SX) reported strong operational performance with an average production of 37,300 barrels per day, despite planned maintenance.
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The company improved its financial performance, with increased revenue and EBITDA, and a strong net liquidity position.
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Okea ASA successfully sold its non-core EMA asset for USD 15.65 million, resulting in a net impairment income of NOK 871 million.
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The company increased reserves by 2.1 million barrels of oil equivalent due to higher energy content in the Hustle Mills gas.
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Development projects like the Bestla tie-back and the power cable to Draugen are progressing well, with the cable expected to be completed by year-end.
Negative Points
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Production efficiency decreased by 2% due to planned maintenance and a 23-day shutdown of the Costa gas evacuation route.
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The start-up of the Draugen electrification project has been delayed from 2027 to 2028 due to offshore work complexities.
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Okea ASA's production guidance for 2025 and 2026 indicates a decline, with expected production between 28,000 and 32,000 barrels per day in 2025 and 26,000 to 30,000 barrels per day in 2026.
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The company faces challenges with water injection and pressure support at the Nova field, requiring further assessment and potential changes.
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High NGL discount impacted the average realized liquid price, bringing it down to $74.9 per barrel.
Q & A Highlights
Q: Could you elaborate on the nonsanctioned projects related to the 2026 CapEx? A: Birte Norheim, CFO: These are less mature projects, including activities around DGEN, the spring project, and unsanctioned drilling around Staf. More details will be provided as investment decisions are made.