Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company ASA (Noreco) — Q3 2014 Earnings Presentation
23 slides from Bluenord Asa's earnings presentation, Dec 1, 2014
Slide 1: Third quarter 2014
Third quarter 2014 Slides for reference during conference call 1 December 2014
Slide 2: Important information
Important information This company presentation (the “Presentation”) has been prepared by Norwegian Energy Company ASA (“Noreco” or the “Company”). The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place. The Company m
Slide 3: Key financials
Key financials YNORECO THIRD QUARTER 2014
Slide 4: Income statement
Income statement NOK million Q3 ‘14 Q2 ‘14 Q1 ‘14 2013 • Revenues Total revenues 296 318 384 894 Production shortfall Production expenses (177) (132) (138) (430) on Huntington, Nini performing well. Exploration expenses (629) (173) (25) (666) Production Payroll (23) (22) (31) (127) expenses include
Slide 5: Write-downs and reversals
Write-downs and reversals Write-downs and Write-downs and reversals Q3 reversals YTD Items (NOK mill) Before tax After tax Before tax After tax Goodwill UK (104) (104) (134) (134) Huntington Forties (1 343) (510) (1 343) (510) Huntington licence (1 447) (614) (1 477) (645) Oselvar (337) (103) (371)
Slide 6: Revenue & EBITDA
Revenue & EBITDA (NOK mill) Revenues EBITDA / Exploration expenses 2012 2013 2014 2012 2013 2014 • Huntington performance better than 2013, though significantly lower than expected • Continued positive EBITDA before • Huntington closed from 18 October to early exploration cost1 December 1 Exploratio
Slide 7: Balance sheet
Balance sheet NOK million 30.09.14 30.06.14 31.12.13 • Equity ratio 16 % Assets Reduction due to Q3 Non-current assets 1 3 532 4 960 4 797 impairment Current assets 1 608 1 041 1 005 • Restricted cash Cash (non-restricted) 736 507 403 485 mill Siri Fairway Total assets 4 876 6 508 6 205 abandonm
Slide 8: Additional information
Table of contents Noreco at a glance 9 Production Production overview 10 Production per field 11 Revenue per field 12 Additional Production expenses per field 13 Exploration information Drilling programme 14 Xana 15 Haribo 16 Niobe 17 Balance sheet specifications Producing assets 18 Intangible asset
Slide 9: Noreco at a glance
Noreco at a glance An exploration driven E&P company in the North Sea Exploration Production (number of licences) (in boepd) NOR DEN UK Year 2011 2012 2013 14E Wells 4 7 4 3 Exploration wells only 9
Slide 10: Q3 production: in line with previous quarter
Q3 production In line with previous quarter • Huntington output in July and Noreco production August lower than expected. (quarterly average in boepd) September good. Closed again since 18 October due to CATS restrictions • Nini and Cecilie producing well, now with permanent Siri solution in place •
Slide 11: Production per field
Production per field (boepd) Noreco Field share Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 Oselvar 15 % 528 550 574 850 221 Enoch 4.36 % 0 0 0 0 0 Lulita 28.2 % 192 172 330 196 45 Nini 30 % 1 722 1 839 1 415 0 469 Cecilie 61 % 152 15 0 0 46 Huntington 20 % 3 160 3 187 4 646 3 637 2 336 Total 5 755 5 763 6 964 4
Slide 12: Revenue per field
Revenue per field (NOK million) Noreco Field share Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 Oselvar 15 % 25 25 30 40 8 Enoch 4.36 % 0 0 0 0 0 Lulita 28.2 % 9 8 15 10 2 Nini 30 % 95 113 82 0 29 Cecilie 61 % 9 1 0 0 3 Huntington 20 % 158 172 257 206 135 Total 296 318 384 255 177 Oil production make up for approx
Slide 13: Production expenses per field
Production expenses per field (NOK million) Noreco Field share Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 Oselvar 15 % 7 6 6 14 7 Enoch 4.36 % 0 0 2 15 -1 Lulita 28.2 % 1 2 3 4 1 Nini* 30 % 95 55 48 38 67 Cecilie* 61 % 14 7 14 7 11 Huntington 20 % 59 62 66 60 23 Total 177 132 138 139 108 Production expenses (OPE
Slide 14: Drilling programme
Exploration and appraisal Drilling programme Noreco Opera- Pot. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Well share tor vol.1 2014 2014 2014 2014 2015 2015 2015 2015 DK 9/95 20.1 % Maersk 131-235 Xana (Gita S) P1889 22.5 % Suncor 7 – 157 Niobe PL616 20 % Edison 69-1922 Haribo PL492 20 % Lundin 111-232 Gohta (appr) P
Slide 15: DK 09/95 – Xana
Exploration programme DK 09/95 – Xana DK 09/95 Xana • Upper Jurassic target in close vicinity (up-dip) to the Operated by Maersk Svane gas discovery and south of Gita discovery • CoS: 27% – Primary risk element: Trap • 131– 235 mmboe gross (gas), 35 mmboe net P50 20.1 % • Expected spud early Dec 201
Slide 16: PL616 – Haribo
Exploration programme PL616 – Haribo • Slumped chalk prospect on the flank of Valhall/Hod inside structural megaclosure • CoS: 42 % – Primary risk element: Trap PL616 Haribo • 69 – 192 mmboe gross on block, 24 mmboe net P50 to Noreco Operated by Edison • On schedule to be drilled in Q2-Q3 2015 – rig
Slide 17: UK P1889 – Niobe
Exploration programme UK P1889 – Niobe P1889 Niobe • Jurassic stratigraphic pinch-out trap, up-dip Operated by Suncor of proven oil discovery, located in Inner Moray Firth in proven play east of Beatrice Field 22.5 % • Cos: 30 % – Primary risk element: Trap Noreco equity interest • 7 – 157 mmboe gro
Slide 18: Balance sheet specifications: producing assets
Balance sheet specifications Producing assets (NOK million) Gross Asset Deferred book retirement tax Net book Asset value obligation (-asset) value Oselvar 0 34 -323 290 Enoch 8 5 3 1 Lulita 34 11 5 17 Nini and Cecilie 294 235 0 58 Huntington Forties 923 150 37 736 Total producing assets 1 259 435 -
Slide 19: Balance sheet specifications: intangible assets
Balance sheet specifications Intangible assets (NOK million) Gross Deferred Net book tax book Asset value (-asset) value Goodwill Denmark 46 0 46 Total Goodwill 46 0 46 Gohta 254 198 56 Xana 35 9 26 Other licences 5 3 2 Total licence and capitalised 294 210 84 exploration expenditures 19
Slide 20: Siri insurance claim
Siri insurance claim Status o Gross book value at the end of Q3 is NOK 382 mill, NOK 334 mill after tax o USD amount unchanged at 59 mill o Total claim is well above NOK 2 billion (~ USD 400 mill plus interests) o Writ filed for Danish court on 14 February 2014 o Writ response received from underwri
Slide 21: Noreco bond structure
Noreco bond structure 600 NOR11 NOK million 400 NOR12 NOR10 **** NOR10 NOR10 NOR11 200 NOR11 NOR06 NOR11 NOR06 NOR06 **** NOR06 0 2014 2015 2016 2017 2018 2019 Bond Outstanding ***) Due **) Main Terms NOR06 NOK 587.7 mill 9 Dec 2017 6.5 % fixed, pledge in Oselvar asset NOR10 NOK 1 372.1 mill 9 Dec 2
Slide 22: Shareholders
Shareholders Top 20 shareholders as of 30 November 2014 Shareholder Shares % of total SA B A R O INV E STME NT LT 17 047 675 30,04 % IK M INDUSTR I-INV E ST 8 579 586 15,12 % O M Holding A S 1 596 159 2,81 % NO R DNE T B A NK A B 879 309 1,55 % DA NSK E B A NK A /S 3887 O P E R A TIO NS SE C. 645 22
Slide 23: Ref.: 131950-v1
Ref.: 131950-v1 23
Norwegian Energy Company ASA (Noreco) — Q3 2014 Earnings Presentation on 6ix