Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company ASA (Noreco) — Q1 2022 Earnings Presentation
29 slides from Bluenord Asa's earnings presentation, May 10, 2022
Slide 1: Focused on Delivery – Results Presentation Q1 2022
Focused on Delivery Results Presentation: Q1 2022 10 May 2022
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: Delivering in Today’s Context
Delivering in Today’s Context 4 Advantageously Positioned to Support Energy Security and Value Creation Key Themes in the Current Landscape ▪ Structural change in the EU energy supply, particularly for gas – Replacement of c. 100bcm p.a. of gas imports requires pragmatism from policy makers ▪ Renewe
Slide 5: Focused on Delivery: Maximising Value Today and Tomorrow
Focused on Delivery 5 Maximising Value: Today and Tomorrow Maximise Production from our operational hubs We Are Delivering Minimise Costs to support overall profitability Operationally Reduce Emissions through targeted interventions Unlocks > 1 Tcfe(1) supporting long-term Danish and EU Energy Secur
Slide 6: Delivering Operationally
Delivering Operationally 6 Strong Performance Driven by Active and Targeted Approach Net Production mboe/d EBITDA Generation USD million ▪ Strong and Growing Production ▪ Supported by Operational Performance and Rising Prices ▪ Full-Year Guidance for 2022 Raised to 24.5-26.5mboe/d ▪ Increasing Spot
Slide 7: Delivering Tyra
Delivering Tyra 7 Step-Change in Production and Cashflow from 2023 Net Production mboe/d Free Cashflow Generation(1) USD million c. 50mboe/d USD 2.6 billion(2) ~1 000 26.9 ~500 ~500 25% 45% ~300 ~200 Oil Gas 2021 2023+ 2023 2024 2025 2026 2027 ▪ Significant Progress: Wellhead and riser platforms and
Slide 8: Delivering Our Potential
Delivering Our Potential 8 Disciplined Capital Allocation Will Define Actionable Opportunity Set Shareholder Returns Significant Deleveraging With Tyra onstream Prioritised Target through-cycle Sustainable, long-term leverage: < 2.0x dividend profile supported by our balance sheet (Net Debt / EBITDA
Slide 9: We Are Delivering Operationally
We Are Delivering Operationally
Slide 10: Noreco’s Asset Portfolio: Diversified, Balanced
Noreco’s Asset Portfolio: Diversified, Balanced 10 Noreco Holds a 36.8% Working Interest in the DUC, Operated by TotalEnergies Key Highlights Portfolio of Four Hubs in the Danish North Sea ▪ 36.8% WI in the Danish Underground Consortium (“DUC”) DUC Partner Interest Norway Pipeline System TotalEnergi
Slide 11: Operations: Continuing Strong Performance
Operations: Continuing Strong Performance 11 Q1 2022 at 28.5mboe/d; Yearly Guidance Increased to 24.5-26.5mboepd Strong Performance in Q1 2022 Daily Net Production mboe/d 28,5 ▪✓ Continued Excellent Operational Performance 2022 27,3 27,5 Guidance: 27,2 26,5 ▪✓ Strong Performance from Dan and Gorm 25
Slide 12: Operations: Positive Outlook for Remainder of 2022
Operations: Positive Outlook for Remainder of 2022 12 Broad Activity Set Focused on Maintaining Strong Operational Performance Continue Well 1 Interventions ▪ Positive impact on short and long term production (Noble Sam Turner) Optimise Dan & 2 Halfdan Water ▪ Ensure optimum water flooding and energ
Slide 13: Annual Statement of Reserves: Year-End 2021
Annual Statement of Reserves: Year-End 2021 13 Reserves Replacement of c. 100% in 2021 Driven by Strong Production Performance 2P Reserves Development (YE-2020 to YE-2021) mmboe ▪ Upward Reserves Revision in 2021 Driven by Strong 22,9 199,5 Underlying Production Performance 75,5 176,6 ▪ Reserves Rep
Slide 14: We Are Delivering Tyra
We Are Delivering Tyra
Slide 15: Tyra: Game-Changing Gas Producer
Tyra: Game-Changing Gas Producer 15 Step-Change Project, Strongly Supporting Danish Energy Security Reserves Unlocks Substantial Gas-Weighted Volumes +200mmboe(1) Production Significant Production Potential from 2023 Onwards +60mboe/d(2) Commodity Mix Materially Re-Weights Noreco’s Production Toward
Slide 16: Tyra: Significantly De-Risked
Tyra: Significantly De-Risked 16 On Track For First Gas in Q2 2023 With Key Milestones Already Met 2017 2019 2020 2021 2022 2023 First Gas (Q2-2023) Project Start Production Shut-In Construction Sail-Aways Sail-Aways & HUC ✓ FID taken ✓ Production ✓ Construction of modules onshore ✓ TEH and TW-WHRPs
Slide 17: Tyra: Progressing towards Q2 2023 First Gas
Tyra: Progressing towards Q2 2023 First Gas Seven of Eight Platforms in place Following Completion of the Recent Offshore Campaign TE-WHRPs TW-WHRPs TEH TEG First Gas # Platforms 3 3 1 1 Construction ✓ ✓ ✓ In progress Q2-2023 Sail-Away ✓ ✓ ✓ Q3-2022 Installation ✓ ✓ ✓ Tyra West Wellhead and Riser Pl
Slide 18: Tyra: Majority of Capex Already Incurred
Tyra: Majority of Capex Already Incurred TEG Sail-Away in Q3-2022 to be Followed by First Gas in Q2 2023 Processing Module: TEG Gross Expenditure DKK billion ▪ Sail-away from Batam, Indonesia in Q3 2022 ▪ Noreco total project cost estimate: DKK 22 billion – Installation to also occur in Q3 2022 – Re
Slide 19: We Are Delivering Our Potential
We Are Delivering Our Potential
Slide 20: Energy Security in the Context of Noreco’s Portfolio
Energy Security in the Context of Noreco’s Portfolio 20 Strategically Important Given Potential to Maintain Plateau of c. 50mboe/d for 2023+ Noreco’s Approach to Energy Security and the Energy Transition in the Current Context ▪ Denmark is at the forefront of the Energy Transition, highlighted by se
Slide 21: Near-Term: Driving Value Additive Growth
Near-Term: Driving Value Additive Growth 21 Seven Infill Well Opportunities Identified by the Operator, with FIDs in 2022/23 Net Volumes Capex Project 2022 2023 2024 2025 (mmboe) ($/boe) Ongoing Activity (Interventions, workovers, stimulation, n/a n/a integrity and reinstatement) Sanctioned WROM (We
Slide 22: Medium-Term: Further Supporting Energy Security
Medium-Term: Further Supporting Energy Security 22 Low-Cost Volumes to Support a Sustainable, Long-Term Cashflow Profile Project and Key Highlights Development Concept ▪ Draft Development Plan submitted Adda ▪ Seven wells, unmanned 4-leg jacket ▪ One year maturation pre-FID Gas-weighted ▪ Potential
Slide 23: Financial Overview
Financial Overview
Slide 24: Financial Summary: Q1 2022
Financial Summary: Q1 2022 24 Positive Financial Result Driven by Continuing Strong Production and Commodity Prices Q2 2021 Q3 2021 Q4 2021 Q1 2022 ($mm) 179 175 Continued Strong Fundamentals 150 Revenue 135 ▪ Revenue: c. 2% vs. Q4-2021 ▪ EBITDA: c. 10% vs. Q4-2021 ($/boe) 32,7 30,8 27,0 27,6 Op
Slide 25: Hedges Provide Cashflow Visibility
Hedges Provide Cashflow Visibility Increasing Spot Market Exposure in 2022+ 2022 2023 2024 % of 2022 Production(1) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Oil Volume Price 1,201 958 900 1,200 1,200 840 840 900 900 300 300 ‘000bbls ~55% Hedges Based on 2022 Price production guidance 55.8 55.7 55.6 51.7 51.7
Slide 26: Robust Capital Structure and Liquidity Position
Robust Capital Structure and Liquidity Position Fully-Funded to Deliver the Tyra Redevelopment Project Robust Capital Structure USD million Strong Liquidity Position USD mllion Stable with No Principal Maturities Pre-Tyra Fully-Funded to Tyra First Gas 192 25 1 292 (147) 100 247 175 1 075 1 146 900
Slide 27: Closing Remarks
Closing Remarks
Slide 28: Focused on Delivery: Maximising Value Today and Tomorrow
Focused on Delivery 28 Maximising Value: Today and Tomorrow Maximise Production from our operational hubs We Are Delivering Minimise Costs to support overall profitability Operationally Reduce Emissions through targeted interventions Unlocks > 1 Tcfe(1) supporting long-term Danish and EU Energy Secu
Slide 29: Q&A
10 May 2022 ae eee
Norwegian Energy Company ASA (Noreco) — Q1 2022 Earnings Presentation on 6ix