Slide 1: Presentation of second quarter 2021
Presentation of second quarter 2021 OKEA ASA 14 July 2021
Slide 2: General and disclaimer
General and disclaimer This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and p
Slide 3: OKEA second quarter 2021 results highlights
OKEA second quarter 2021 results Highlights Second quarter 2021 highlights OKEA-operated Draugen platform Operations • No serious incidents at Draugen, Covid-19 situation managed • Production 13 210 boepd Financials • Operating income NOK 607 million • EBITDA NOK 311 million • Full impairment revers
Slide 4: Oil and gas production and production reliability
Oil and gas production and production reliability Excellent production reliability; lower production due to planned maintenance on Gjøa Production (boepd) Production reliability (%) 20 000 Draugen 16 047 16 171 16 557 Gjøa Ivar Aasen 15 000 91 99 99 97 99 13 303 13 210 7 592 7 246 7 944 10 000 6 654
Slide 5: Safety and emissions
Safety and emissions No leaks, no serious incidents Serious Incident Frequency – per million work-hours Total Recordable Incident Frequency – per million work-hours 6.2 5.3 5.3 5.0 4.8 4.7 4.8 4.5 4.2 3.4 Zero serious incidents last 2.5 years Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2
Slide 6: Draugen – WI 44.56%
Draugen – WI 44.56% Production Production reliability 7 128 boepd 99% • Excellent operating performance and reliability • FID on Hasselmus in Q2 21 - a subsea tie-back to Draugen • First gas Q4 2023 – 4 400 boepd gross production plateau rate • Gross capex estimated at NOK 2.4 billion – break-even U
Slide 7: Gjøa – WI 12%
Gjøa – WI 12% Production Production reliability 5 828 boepd 100% • Two new wells in the P1 segment onstream in Q1 21 • 31 days shut down in Q2 including tie-in of Duva and Nova • OKEA to be compensated for deferred production when tie-in projects Nova and Duva come onstream in addition to ordinary t
Slide 8: Yme New Development – WI 15%
Yme New Development – WI 15% Plateau production Reserves 7 500 boepd 9.4 mmboe* • The production jack-up Maersk Inspirer installed at location in Q4 20 • Project in final hook-up and commissioning phase progressing as planned • Production start expected in H2 21 • Production 7 500 boepd net to OKEA
Slide 9: Financials
Financials
Slide 10: Oil and gas production, sales and revenues per asset
Oil and gas production, sales and revenues per asset Lower production, but revenue increase due to higher market prices Production (boepd) Sold volumes (boepd) 20 000 20 000 18 794 Draugen Draugen 16 047 16 171 16 557 Gjøa Gjøa Ivar Aasen 14 634 15 198 Ivar Aasen 15 000 15 000 14 232 13 303 13 210 9
Slide 11: Lifted volumes and realised liquids prices versus Dated Brent
Lifted volumes and realised liquids prices versus Dated Brent Lifted volumes vs Dated Brent - 2020/2021 Realised liquids prices vs Dated Brent – Q2 21 USD/bbl kbbl USD/bbl 80 950 80 Q1 Q3 Q1 Q3 900 75 850 75 850 70 70 68.8 800 2.6 750 0.4 63.8 65 65 3.8 62.1 682 1.7 700 60 60 632 635 640 650 602 55
Slide 12: Sold volumes and average gas market price
Sold volumes and average gas market price – 2020/YTD 2021 Record high seasonal European gas prices Pence/therm kbbl 80 193 Q1 Q3 Q1 200 75 190 176 180 70 171 167 165 170 65 159 154 156 154 155 160 151 60 146 150 55 135 140 128 130 50 120 45 110 40 100 87 90 35 80 80 80 30 64 70 25 60 20 50 15 40 30
Slide 13: Income statement
Income statement Q2 21 comments Operating income: • Higher realised prices partly offset by lower sold volumes Figures in NOK million Q2 21 Q1 21 Q2 20 H1 2021 H1 2020 Total operating income 607 524 275 1 131 825 Production expenses: • NOK/boe of 159 compared to 102 in Q1 21 Production expenses -213
Slide 14: Statement of financial position
Statement of financial position Figures in NOK million Assets 30.06.2021 31.03.2021 31.12.2020 30.06.2020 Q2 21 comments Goodwill 769 769 769 772 Oil and gas properties 4 558 3 807 3 758 3 859 • Oil and gas properties NOK 4 558 million Other non-current assets 3 069 3 049 3 029 3 011 • Increase of N
Slide 15: Cash development Q2 21
Cash development Q2 21 NOK million 2 000 1 500 194 197 68 9 7 440 +368 1 000 1 346 500 978 0 Cash 31.03.21 Operating activities Net taxes received Investment Interest paid Payments of FX effect on Cash 30.06.21 activities lease debt cash held 15
Slide 16: Cash development H1 21
Cash development H1 21 NOK million 2 000 291 467 1 500 91 18 9 751 +475 1 000 1 346 500 871 0 Cash 31.12.20 Operating Net taxes received Investment Interest paid Payments of FX effect on Cash 30.06.21 activities * activities * lease debt cash held * Expenditures relating to drilling of dry/non-comme
Slide 17: No change in guiding on production & capex
No change in guiding on production & capex OKEA to receive compensation for deferred volumes on Gjøa for shut-downs related to Duva/Nova tie-ins Production – thousand boepd Capex* – NOK million Gjøa accelerated compensation 1.2-1.8 0-0.4 16.1 15.5-16.5 17-18 980 600 - 700 2020 actuals 2021 guiding 2
Slide 18: Summary and outlook
OK¢ Summary and outlook =A
Slide 19: Key milestones and deliveries H2 21
Key milestones and deliveries H2 21 • Start-up Yme in H2 – stepping-up OKEA production • Production 7 500 boepd net to OKEA at plateau - the first-year average 5 600 boepd net to OKEA • Significant cost reductions and cash flow benefits from reorganising operations and ownership structure of Maersk
Slide 20: OK
OK