Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company ASA (Noreco) — Q3 2019 Earnings Presentation
19 slides from Bluenord Asa's earnings presentation, Nov 28, 2019
Slide 1: Third Quarter 2019
Third Quarter 2019 28 November 2019
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 ▪ Completed the acquisition of Shell Olie- og Gasudvinding Danmark B.V. (“SOGU”) and became a partner in the Danish Underground Average Consortium (“DUC”) on 31 July 2019 EBITDA2 Production1 ▪ Net production of 41.6 mboepd in the quarter1, following ramp down of Tyra. 41.6
Slide 5: Operational Review
Operational Review Atle Sonesen, COO
Slide 6: The Danish Underground Consortium ("DUC")
The Danish Underground Consortium (“DUC”) Introduction to DUC Four production hubs and 11 producing fields ▪ JV between Total, Noreco and Nordsøfonden. It produced 85% of liquids and 94% of gas on the Danish Continental Shelf (“DCS”) in 2018 ▪ Owns essential infrastructure on the DCS, including key
Slide 7: Consistent Production Performance in line with Plan
Consistent Production Performance in line with Plan Production (net)1 ▪ Net production of 41.6 mboepd1 according to plan 45 ▪ Successful ramp-down of production and shutdown of Tyra and satellites, in accordance with plan, in September 6,0 ▪ Successful completion of the HBB-05 production well – firs
Slide 8: Significant Base of Untapped in Place Volumes
Significant Base of Untapped in Place Volumes Hydrocarbons Initially in Place1 (HCIIP) 15.1 4.2 10.9 ~4 bn boe bn boe bn boe bn boe HCIIP in Sole Historic Remaining Noreco’s share Concession area production and HCIIP over = 36.8 % current remaining and above 2P 2P 1) Company estimate 8
Slide 9: From Resources to Reserves
From Resources to Reserves Noreco’s share of remaining HCIIP above 2P ~4 bn boe Current Resources Non- Improved oil Discoveries Discoveries Movable lacking movable 2P1 recovery with plan without plan technology resources resources 195 130+ ~70 Non-commercial million boe million boe million boe Compa
Slide 10: Implementation of Low Capex – High Value Projects
Implementation of Low Capex – High Value Projects Figures net to Noreco1 Project A – Oil Development Project B – Oil Development Project C – Gas Development Production 5000 5000 5000 Profile 4000 4000 4000 Rate (boe/d Equity Share) Rate (boe/d Equity Share) Rate (boe/d Equity Share) (boed) 3000 3000
Slide 11: Tyra Hub Redevelopment Will be a Catalyst to Extend Production on the DCS
Tyra Hub Redevelopment Will be a Catalyst to Extend Production on the DCS ▪ Production from the Tyra hub has been temporarily shut (Sept-19) and planned on stream again mid 2022 ▪ Offshore modification and construction work is ongoing ▪ New wellhead and riser modules and new process modules are bein
Slide 12: Financial Review
Financial Review Euan Shirlaw, CFO
Slide 13: Summary of Q3 2019 Results
Summary of Q3 2019 Results First quarter reflecting impact of the acquisition, which closed on 31 July 2019 Hydrocarbon Realized Unit Contribution from Cashflow from Production Liquids Price Opex2 Liquids Protection Operations 41.6 mboepd USD 74.8/boe USD 20.9/boe USD 38 million USD 115 million Hydr
Slide 14: Oil & Gas Production & Sales Q3 2019
Oil & Gas Production & Sales Q3 2019 Production1 Sales Realized Liquids Prices Revenue (mboepd) (mboepd) (USD/boe) (USD million) 46,3 74,8 160 41,6 Reflects Average overlift in the market price period of for Dated 4.7mboepd Brent of USD 60.6/boe in August and September 0,1 0,1 n/a 0 Q2 2019 Q3 2019
Slide 15: Overview of Hedging Arrangements Q3 2019
Overview of Hedging Arrangements Q3 2019 Result in Q3 2019 Forward Hedging Portfolio (USD/boe) (USD/boe) 74,8 Average Hedged Price 72,3 (USD/boe) 67,5 Liquid Volumes Hedged (mmboe) 60,6 Price 56,2 55,9 2.7 10.2 5.9 1.9 Market Price Realized Price Q4 2019 2020 2021 2022 ▪ Liquids Protection Agreement
Slide 16: Financial Statements Q3 2019
Financial Statements Q3 2019 Operational Q3 2019 Q2 20191 Adjusted EBITDA: Q3 2019 (USD million) Production (mboepd) 41.6 0.0 Production Expense (USD/boe)2 20.9 n/a 10 Profit & Loss (USD million) 7 Revenue 160 1 Production Expense (68) (0) EBITDA 68 (1) 38 Adj. EBITDA 122 n/a EBIT (240) (1) Net Resu
Slide 17: Capital Structure Overview Sept. 2019
Capital Structure Overview 30 Sept. 2019 Net Debt Overview: 30 Sep 2019 (USD million) Overview of Key Items ▪ 1 Reserve Based Lending Facility 26 931 135 4 – Drawings of USD 746 million at end 158 Sept-19 796 158 – Amendment agreed post period end to 746 increase potential borrowing capacity 638 ▪ 2
Slide 18: Proposed Bond Issue
Proposed Bond Issue ▪ Noreco announced on 28th November 2019 a potential unsecured senior bond issue ▪ The company intends to raise up to USD 175 million through a bond with a 6.5 year maturity – This follows a period of market sounding that supports our view on successful execution ▪ Issue will be
Slide 19: Outlook and Q&A
Outlook and Q&A > NorEco
Norwegian Energy Company ASA (Noreco) — Q3 2019 Earnings Presentation on 6ix