North Energy Asa · OSL:NORTH

North Energy Asa — Q2 2016 Earnings Presentation

19 slides from North Energy Asa's earnings presentation, Aug 29, 2016

  1. Slide 1: North Energy Q2 2016

    North Energy Q2 2016 Continued profitability from capital discipline and successful investments 29 August 2016 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) 78 60 79 50 · www.northenergy.no

  4. Slide 4: Q2 highlights and subsequent events

    Q2 highlights and subsequent events  Net profit of NOK 5.4 million recorded in the quarter  Gain from sale of assets and successful investments  Second consecutive quarter with a profit  Integration process completed following acquisition of Explora  Exploration activities now concentrated with

  5. Slide 5: Agenda

    Agenda  Q2 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  6. Slide 6: A new corporate and management structure implemented in the quarter

    A new corporate and management structure implemented in the quarter The new corporate and management structure North Energy ASA North Advisors AS Preference Ordinary Ordinary shares shares shares (20 %) (100%) (80 %) North Energy Capital AS Advisory agreement New business North E&P AS North E&P segm

  7. Slide 7: Strengthened management resources and better align incentives

    Strengthened management resources and better align incentives North Energy’s new corporate and management structure North Energy ASA North Advisors AS Additional Preference distribution return ordinary shares North Energy Capital AS Management fee New business North E&P AS North E&P segments North N

  8. Slide 8: Licence portfolio update

    Licence portfolio update  The 2015 revised exploration strategy raised North Energy’s commercial thresholds  Response to the adverse market conditions  High grading of portfolio resulting in several licence divestments and relinquishments  Year to date the Company has divested PL 507, 707, 722,

  9. Slide 9: Remaining active portfolio

    Remaining active portfolio DoD/BOK License Prospect Interest Operator Location Rig Deadline PL 378 Skarfjell 17.5% Wintershall North Sea N/A Q1 2017 PL 757 Batur 30% Centrica Norwegian Sea N/A Q1 2017 PL 770 Saarikoski 20% Edison Barents Sea N/A Q1 2017 Sandia/ PL 719 20% Centrica Barents Sea N/A Q2

  10. Slide 10: Concept selection for the Skarfjell discovery ongoing

    Concept selection for the Skarfjell discovery ongoing  North E&P holds a 17.5 per cent stake in PL 378 and through this a minor stake in the Skarfjell discovery (PL 418)  Skarfjell total: +100 mmboe oil discovery southwest of the Gjøa field  Concept selection to be decided  Several development c

  11. Slide 11: Carefully assessing APA 2016 areas

    Carefully assessing APA 2016 areas Barents Sea Norwegian Sea AASTA HANDSTEIN DEEP WATER JOHAN CASTBERG North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  12. Slide 12: Agenda

    Agenda  Q2 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  13. Slide 13: Q2 the second consecutive quarter with a profit

    Q2 the second consecutive quarter with a profit (North Energy Group consolidated) NOK Million Q2 2016 Q2 2015 YTD 2016 YTD 2015 2015 Gain/loss from licence sale 8,4 (0,4) 9,5 (0,4) 5,4 Sale of licences mainly PL722, PL 507 Exploration expenses (4,3) (116,2) (10,4) (233,3) (415,2) Licences work progr

  14. Slide 14: Significant drop in cost levels contributing to the result improvements

    Significant drop in cost levels contributing to the result improvements  Exploration and licence expenses Exploration and licence expenses down 95 per cent Y/Y as per 30 June (MNOK)  No. of licences reduced from 22 to 8 140 following strict high grading process 120 100  No drilling activity YTD a

  15. Slide 15: Balance Sheet

    Balance Sheet 31 March 2016 (North Energy group consolidated) NOK Million 30.06.2016 31.03.2016 31.12.2015 Comments on 30.06.2016 Assets Fixed assets 2,4 3,0 3,8 Capitalized drilling cost 0,0 0,0 0,0 Deferred tax asset 200,4 193,0 149,8 Def. tax on loss carried forward Investments 30,7 34,4 Shares a

  16. Slide 16: A solid net cash position

    A solid net cash position  North Energy Group Net cash position Q2 2016 consolidated in all figures  Net cash position of NOK 20 179 million 62  Unused exploration loan facility NOK 442 million North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  17. Slide 17: Agenda

    Agenda  Q2 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  18. Slide 18: Summary and outlook

    Summary and outlook  North Energy actively addressing challenging market conditions  Integration of Explora completed, cost levels significantly reduced  Broadened business scope and strengthened management  Capital discipline and successful investments delivering profits  NOK 99.5 million in n

  19. Slide 19: Q&A

    Q&A North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

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