North Energy Asa · OSL:NORTH

North Energy Asa — Q2 2017 Earnings Presentation

18 slides from North Energy Asa's earnings presentation, Aug 22, 2017

  1. Slide 1: North Energy Q2 2017

    North Energy Q2 2017 Capitalising on revised business model 22 August 2017 CEO Knut Sæberg

  2. Slide 2: Important information

    Important information This presentation and its appendices (together the “Presentation”) have been prepared and delivered by North Energy ASA (“North Energy” or the “Company”). The Presentation is prepared for information purposes only, and is not to be used for any other purpose. The Presentation d

  3. Slide 3: Agenda

    Agenda  Q2 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  4. Slide 4: Q2 highlights and subsequent events

    Q2 highlights and subsequent events  NOK 41 million in net result in the quarter  NOK 45 million gain on Interoil investment contributing to the result  Interoil-bonds sold for cash consideration and shares  Total investments of NOK 148 million as per 30 June  Decision made to discontinue petro

  5. Slide 5: Agenda

    Agenda  Q2 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  6. Slide 6: North E&P – Decision made to seize operations

    North E&P – Decision made to seize operations  Final licence (PL 805) sold  Awaiting government approval  Decision made to discontinue NCS operations  Business model no longer sustainable  Seeking cash reimbursement of the company's offshore tax losses  Net cash position of North E&P, includin

  7. Slide 7: A new subsidiary established providing consultancy services

    A new subsidiary established providing consultancy services  North Energy Norge AS established in June  Provides G&G services on a consultancy basis  Supports in-house investment activities  Contract with client outside NCS already signed North Energy ASA North Energy Capital AS 100% 100% 28% No

  8. Slide 8: Investments – Continued positive development

    Investments – Continued positive development  Investment portfolio increased to NOK 148.5 million  Representing a 12 month growth of NOK 117.8 million  Funded from internal sources  Highlighting the successful transition in strategy  Gains pocketed and dividends paid  Significant gains realise

  9. Slide 9: Overview of selected investments

    Overview of selected investments Name of Description Type of Status investment investment Reach Subsea Subsea Equity Unrealised. Valued at NOK 77 services million as of 30.6 Seabird Exploration Seismic Debt/equity Unrealised. Valued at NOK 5.8 million as of 30.6 Interoil Exploration Exploration & De

  10. Slide 10: NOK 45 million gain recorded from sale of Interoil-bonds

    NOK 45 million gain recorded from sale of Interoil-bonds  Consideration in cash and shares in Andes Energia (AEN)  USD 2 million cash, 7.5 million shares in AEN  Agreement with AEN signed 9 May 2017  NOK 45 million gain derived from AEN share price  AEN share trading at GBP 0.58 on LSE at the t

  11. Slide 11: Reach Subsea executing on growth plan

    Reach Subsea executing on growth plan  Executing on growth plan outlined in connection with the February 2017 private placement  Expanded through Q2 from a 4 vessel operation to a 6 vessel operation (Havila Subsea and Olympic Delta)  Important contracts won with Allseas and Nordstream  Edda Fonn

  12. Slide 12: Agenda

    Agenda  Q2 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  13. Slide 13: Profit & Loss Q2 2017

    Profit & Loss Q2 2017 (North Energy group consolidated) NOK Million Q2 2017 Q2 2016 YTD 2017 YTD 2016 2016 Gain/loss from licence sale - 8,4 - 9,5 14,0 Exploration expenses 1,7 (4,3) 2,5 (17,5) (29,1) Adjustment previously owned licences Payroll (11,4) (9,5) (15,9) (34,2) (32,5) Provision for closur

  14. Slide 14: Balance Sheet 30 June 2017

    Balance Sheet 30 June 2017 (North Energy group consolidated) NOK Million 30.06.2017 31.03.2017 31.12.2016 Comments on 30.06.2017 Assets Fixed assets 0,2 0,8 1,3 Capitalized drilling cost - - - Deferred tax asset 213,7 197,8 207,3 Mainly deferred tax on LCF Investments 148,5 114,3 51,3 Shares, bonds,

  15. Slide 15: A solid financial position

    A solid financial position  Net cash position as per 30 June NOK 46 million  Investment portfolio as per 30 June NOK 148 million  Tax losses carried forward from North E&P* NOK 201 million *The net cash position of North E&P, including the value of tax losses carried forward, was approximately NO

  16. Slide 16: Agenda

    Agenda  Q2 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  17. Slide 17: Summary and outlook

    Summary and outlook  A solid financial performance in the quarter  NOK 45 million in profit from investments  A growing investment portfolio  Exploration business under liquidation  A natural consequence of the persistent challenges facing small cap E&P’s  North Energy seeking cash reimburseme

  18. Slide 18: Q & A

    Q&A North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

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