Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company ASA (Noreco) — Q2 2015 Earnings Presentation
20 slides from Bluenord Asa's earnings presentation, Aug 27, 2015
Slide 1: Second quarter 2015
Second quarter 2015 Presentation material 27 August 2015
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: Contents and presenters
Contents and presenters • Headlines p. 4 • Operations – Production p. 6 – Exploration p. 7 • Key financials – Second quarter p. 8 Tommy Sundt, Chief Executive Officer • Concluding remarks p. 11 Questions & Answers • Reference material p. 13 For questions, please email: investorrelations@noreco.com O
Slide 4: Second quarter summary
Second quarter summary • Financial restructuring completed, started to deliver on revised strategy. Some important steps: – Participation in Nini and Cecilie (Denmark) licences terminated, settlement for liabilities and abandonment costs agreed – Agreement to sell Oselvar (Norway) interest for NOK 2
Slide 5: Current company structure
Current company structure Two structures ring-fenced, separate loan agreements • New group structure Norwegian Energy Company ASA involving ring-fence around NOR06’s Norwegian Energy pledged assets in Company (UK) Ltd Altinex AS Noreco Norway (Ring- All UK exploration activity fence 2) Noreco Noreco
Slide 6: Huntington back on stream
Huntington back on stream Noreco production (quarterly average in boepd) • Huntington back on stream in April. No impact from CATS summer maintenance • Nini and Cecilie participation terminated • Lulita1 stable in Q2, affected by technical issues in July • Oselvar2 fairly stable through the quarter
Slide 7: Exploration: Niobe and Haribo dry, Xana under evaluation
Exploration: Niobe and Haribo dry, Xana under evaluation Haribo Xana • Drilled by Trans- ocean Searcher • Drilled by Noble Niobe in June and July Sam Turner. • Drilled in June 2015 Completed May 2015 by jackup 2015 • P&A, dry Ensco 100 • P&A. Hydrocarbons • Noreco Norway • P&A, dry discovered. Under
Slide 8: Key financials
Key financials Y NORECO NORWEGIAN ENERGY COMPANY ASA SECOND QUARTER
Slide 9: Income statement
Income statement Q2 ‘15 Q2 ’15 Q1 ‘15 Q1 ’15 YTD ’15 • Low production NOK million Segm1 IFRS Segm1 IFRS IFRS expenses due to Total revenues 193 193 114 114 308 reversion of accrued cost Production expenses (19) (19) (139) (139) (157) on Nini/Cecilie in Q1 and Exploration expenses (151) (151) (129) (
Slide 10: Balance sheet
Balance sheet NOK million 30.06.15 30.06.15 31.03.15 • Repayment of NOR06 and NOR10 classified as current Segments IFRS IFRS Assets • NOK 250 mill paid to NOR10 bondholders in Non-current assets 1 856 1 812 1 675 August Current assets 692 692 1 036 • IFRS equity impacted by Cash (non-restricted) 616
Slide 11: Concluding remarks
Concluding remarks Y NORECO
Slide 12: Strategy and priorities
Strategy and priorities • Implementation of new strategy, which was approved earlier this year, is well underway and will continue • Disciplined approach to operation – Carefully deliver on existing commitments – Continue to work with operators to secure cost efficient production – Limit additional
Slide 13: Production per field
Production per field (boepd) Noreco Field share Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Oselvar 15 % 411 454 497 528 550 574 Enoch 4.36 % 0 0 0 0 0 0 Lulita 28.2 %1 282 101 136 192 172 330 Nini2 30 % 0 644 2 012 1 722 1 839 1 415 Cecilie2 61 % 0 255 286 152 15 0 Huntington 20 % 4 200 1 783 616 3 160 3 1
Slide 14: Additional information
Table of contents Additional Production per field Revenue per field 14 15 Production expenses per field 16 information Producing assets Intangible assets Siri insurance claim 17 18 19 14
Slide 15: Revenue per field
Revenue per field (NOK million) Noreco Field share Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Oselvar 15 % 15 16 19 25 25 30 Enoch 4.36 % 10 0 2 0 0 0 Lulita 28.2 %1 9 3 5 9 8 15 Nini2 30 % -9 23 85 95 113 82 Cecilie2 61 % -1 9 10 9 1 0 Huntington 20 % 169 64 23 158 172 257 Total 193 114 145 296 318 384 1
Slide 16: Production expenses per field
Production expenses per field (NOK million) Noreco Field share Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Oselvar 15 % 6 5 11 7 6 6 Enoch1 4.36 % -18 1 1 0 0 2 Lulita 28.2 %2 2 1 2 1 2 3 Nini3 30 % -30 46 54 95 55 48 Cecilie3 61 % -7 18 16 14 7 14 Huntington 20 % 66 66 55 59 62 66 Total 19 139 140 177 132
Slide 17: Producing assets
Producing assets Gross Asset Deferred book retirement tax Net book Asset (NOK million) value obligation (-asset) value Oselvar 0 67 -269 202 Enoch 0 8 -7 -2 Lulita 13 5 3 5 Nini and Cecilie1 0 530 0 -530 Huntington 291 170 -45 166 Total producing assets 304 780 -317 -159 Classified as held for sale
Slide 18: Intangible assets
Intangible assets Gross Deferred Net book tax book Asset (NOK million) value (-asset) value Goodwill Denmark (Lulita) 5 0 5 Total Goodwill 5 0 5 Gohta 254 198 56 Other licences 0 0 0 Total licence and capitalised 254 198 56 exploration expenditures 18
Slide 19: Siri insurance claim
Siri insurance claim Status o No change since Q1 o Gross book value at the end of Q2 is NOK 465 mill o NOK 407 mill net of deferred tax o USD amount unchanged at 59 mill o Total claim is ~ USD 400 mill plus interests o Continues to progress the claim towards final court hearings o Written pleadings
Slide 20: YZ NORECO
YZ NORECO
Norwegian Energy Company ASA (Noreco) — Q2 2015 Earnings Presentation on 6ix