Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company ASA (Noreco) — Q3 2021 Earnings Presentation
23 slides from Bluenord Asa's earnings presentation, Oct 28, 2021
Slide 1: Third Quarter 2021
Third Quarter 2021 Oslo, 28 October 2021
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION (THE “INFORMATION MATERIAL”) HAS BEEN PRODUCED AND PARTY SOURCES ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT DELIVERED BY NORWEGIAN ENERGY COMPANY ASA (THE “COMPANY”). THIS TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL INFORMATION MATERIAL DOES
Slide 3: Important Information
Important Information AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY THE COMPANY TO BE MATERIALL
Slide 4: Highlights for the Quarter
Highlights for the Quarter ▪ Production in the upper range of annual guidance (25.5 to 27.5mboe/d) 27.2 Strong Production Performance mboe/d ▪ Noble Sam Turner rig program continues to have a positive impact ▪ Strong revenue contribution from producing assets 150 Revenue USDm ▪ EBITDA of USD 65 mill
Slide 5: Noreco: Near-Term Growth and Deleveraging on the Horizon
Noreco: Near-Term Growth and Deleveraging on the Horizon Fully-funded for material cashflow generation with expected production c. 50mboe/d by 2023 ▪ Tangible, near-term growth through the Tyra redevelopment project – 2021 & 2022: Focus on base delivery, securing Tyra and minimizing exposure to mark
Slide 6: Operational Review
Operational Review
Slide 7: Quarterly Production in Upper Range of Guidance
Quarterly Production in Upper Range of Guidance Significant Operational Improvement on Performance Quarter on Quarter ▪ Third quarter production of 27.2 mboepd ▪ Quarterly operational efficiency at 82.4 percent ▪ Positive effect from Noble Sam Turner rig program catching up on planned workover and w
Slide 8: Tyra Redevelopment: A Game Changing Gas Producer
Tyra Redevelopment: A Game Changing Gas Producer Largest Project undertaken on the DCS, unlocking Gross Potential in excess of 200mmboe Highlights Rosetti Yard Visit of Accommodation Module (Oct 2021) ▪ Tyra is the largest gas condensate field on the DCS, – Processing > 90% of the gas produced in De
Slide 9: Tyra Redevelopment: Project Milestones
Tyra Redevelopment: Project Milestones Ongoing de-risking, with 2022 sail away dates locked-in September 2021: Successful Installation of Tyra East Topsides ▪ Tyra East Wellhead & Riser Platforms delivered and installed according to plan – Three topsides safely lifted off and installed on jackets by
Slide 10: Production: Tyra Delivers c. 90% Increase
Production: Tyra Delivers c. 90% Increase Defined, low-risk and fully-funded to expected production of c. 50,000 boe/d in 2023 Net Production(1) 60 (mboe/d) Base (Dan, Halfdan, Gorm) Tyra (incl. Harald) 45 Mature Projects(2) 2C Resources(3) 30 15 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ▪
Slide 11: Financial Review
Financial Review IE
Slide 12: Developing Noreco as a Material Cashflow Generator
Developing Noreco as a Material Cashflow Generator Pre-2021 2021/22 2023+ Yesterday Today Tomorrow ▪ Acquisition of Shell’s 36.8% WI in the DUC(1) ▪ Producing Hubs: Offer stable contribution ▪ Step-change when Tyra onstream: for USD 1.9 billion successfully closed in 2019 ‒ Noble Sam Turner currentl
Slide 13: Financial Summary: Q3 2021
Financial Summary: Q3 2021 Robust capital structure and liquidity position; fully funded to deliver Tyra ▪ Stable and predictable Q3 performance Key Financial Data: Q3 2021 Q2 2021 – Production at the top end of annual guidance – Financial result supported by oil & gas price backdrop Hydrocarbon Pro
Slide 14: Commodity Hedging: Q3 2021
Commodity Hedging: Q3 2021 Programme executed to minimise exposure to near-term commodity price volatility Hedged Volumes Average Hedge Price (mmbbl) (USD/bbl) 61,3 56,1 55,8 55,6 53,5 2,4 2,4 51,7 1,9 1,8 1,4 1,6 Oil Q4 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 Q4 2021 H1 2022 H2 2022 H1 2023 H2
Slide 15: Capital Structure: Q3 2021
Capital Structure: Q3 2021 Liquidity of USD 252 million, with no debt principal repayments prior to Tyra first gas Net Debt Overview: End Q3 2021(1) Available Liquidity: End Q3 2021 (USD million) (USD million) 185 1 285 152 100 252 1 133 25 1 100 175 900 152 (3) RBL NOR14 Other Gross IBD NOR13 Gross
Slide 16: Material Cashflow Generation: Illustrative Profile
Material Cashflow Generation: Illustrative Profile Post-Tax FCF generation from 2023 to 2027 over USD 1.8 billion at current forward curves Illustrative Post-Tax Free Cashflow Generation: 2023 to 2027(1,2) 600 (USD million) 500 ~500 Brent & TTF Forward Curves – 22 Oct 2021(3) ~400 400 ~300 ~300 ~300
Slide 17: Disciplined Capital Allocation
Disciplined Capital Allocation Deleveraging from 2023 to deliver fit-for-purpose capital structure Key Capital Allocation Messages Free Cashflow ▪ Illustrative free cashflow of over USD 1.8 billion cumulative from 2023 to 2027(1) ▪ Noreco anticipates significant deleveraging once Tyra onstream Delev
Slide 18: Sustainability
Sustainability
Slide 19: Sustainability: Our Role in the Energy Transition
Sustainability: Our Role in the Energy Transition Defined principles will influence our approach, supporting a key tenet of our strategy which is achieving a set of substantive, quantifiable and achievable ESG goals Principles, Objectives & Approach Sustainability Linked KPIs ▪ Noreco has set its st
Slide 20: An Active Participation in the Energy Transition – Project Bifrost
An Active Participation in the Energy Transition – Project Bifrost Maturing 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) Project Bifrost: ▪ DUC partnership with Ørsted and DTU ▪ Project aims to reuse
Slide 21: Closing Reflections
Closing Reflections bs NA avert oor [TT ES
Slide 22: Fully-Funded Growth and Deleveraging from 2023
Fully-Funded Growth and Deleveraging from 2023 Material Reserves & ▪ 2P reserves of 201 mmboe ✓ Resources Base ▪ 2C resources of approximately 200 mmboe for progression with additional projects Substantial ▪ Base production providing significant operational cashflow ✓ Production ▪ Low decline rates;
Slide 23: Contact: ir@noreco.com
Contact: ir@noreco.com > NorEco 23
Norwegian Energy Company ASA (Noreco) — Q3 2021 Earnings Presentation on 6ix