Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company ASA (Noreco) — Pareto Securities' 11th Annual Nordic Corporate Bond Conference 2022
25 slides from Bluenord Asa's conference presentation, Mar 17, 2022
Slide 1: Focused on Delivery
Focused on Delivery Pareto Securities' 11th Annual Nordic Corporate Bond Conference 17 March 2022
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: Focused on Delivery
Focused on Delivery 4 Maximising Value: Today and Tomorrow Maximise Production from our operational hubs We Are Delivering Minimise Costs to support overall profitability Operationally Reduce Emissions through targeted interventions Unlocks > 1 Tcfe(1) to support long-term energy security in Denmark
Slide 5: We Are Delivering Operationally
We Are Delivering Operationally
Slide 6: Delivering Operationally
Delivering Operationally 6 Strong Performance Driven by Active and Targeted Approach Concentrated Focusing on activities that Make a Difference Constructive Recognising the importance of Influencing Persuasive Consensus by leveraging our Expertise Independent Ensuring Noreco Controls its Destiny Dis
Slide 7: Operations: Outlook Remains Strong into 2022
Operations: Outlook Remains Strong into 2022 7 Guidance of 23.5 to 25.5 mboepd for 2022 Activity Focus During 2022+ 2022 Production Guidance 1▪ Continue Well Interventions (Noble Sam Turner) mboe/d 26,9 ▪ Positive impact on short and long term production 23.5 – 25.5 2▪ Optimise Dan & Halfdan Water M
Slide 8: We Are Delivering Tyra
We Are Delivering Tyra
Slide 9: Delivering Tyra
Delivering Tyra 9 Step-Change Production and Cashflow from 2023 Net Production mboe/d Free Cashflow: Forward Curve(1) USD million Commodity Mix: Post-Tyra Cumulative (2023-27): USD 2.3 billion c. 50mboe/d 45 % 55 % ~700 Oil Gas ~600 26.9 ~400 ~400 ~200 (mboe/d) Pre-Tyra Post-Tyra 2021 2023+ 2023 202
Slide 10: Tyra: A Game-Changing Gas Producer
Tyra: A Game-Changing Gas Producer 10 Step-Change project, strongly supporting Danish energy security Reserves Unlocks Substantial Gas-Weighted Volumes +200mmboe(1) Production Significant Production Potential from 2023 Onwards +60mboe/d(2) Commodity Mix Materially Re-Weights Production Towards Gas ~
Slide 11: Tyra: Project Advanced Significantly Since 2017
Tyra: Project Advanced Significantly Since 2017 11 2022 activity focused on remaining sail-aways from yards, installation and continuation of hook-up and commissioning 2017 2019 2020 2021 2022 2023 First Gas (Q2-2023) Project Start Production Shut-In Construction Sail-Aways Sail-Aways & HUC ▪ FID ta
Slide 12: Successful Sail Away of TEH from Ravenna
16 March: Successful Sail Away of TEH from Ravenna The delivery from yard of high-tech living- and utility quarters de-risks the project further with only one remaining sail away ▪ 2,882,141 hours – zero LTI ▪ Home away from home for offshore crew ▪ 5,400 tons, 32.5 meters tall ▪ State-of-the-art co
Slide 13: Tyra: Remaining Forecast Expenditure
Tyra: Remaining Forecast Expenditure More than 75% of total expenditure already incurred by the end of 2021 at c. DKK17.0bn including capex and abex Gross Project Expenditure DKK billion ▪ Noreco currently assumes an estimated DKK 22 billion total cost – Represents c. DKK 1 billion increase relative
Slide 14: We Are Delivering Our Potential
We Are Delivering Our Potential
Slide 15: Delivering Our Potential
Delivering Our Potential 15 Disciplined Capital Allocation Will Define Actionable Opportunity Set Shareholder Returns Significant Deleveraging With Prioritised Tyra onstream Key to establishing a Target leverage: < 2.0x sustainable, long-term dividend profile supported (Net Debt / EBITDAX) by our ba
Slide 16: Potential to Maintain Plateau Production
Potential to Maintain Plateau Production 16 Decisions to invest further will need to support long-term cashflow generation potential Long-Term Production Potential: Reflecting Organic Opportunity Set mboe/d ▪ Long-term potential exists to mitigate decline and maintain plateau production levels at c.
Slide 17: Highlighting Our Organic Opportunity Set
Highlighting Our Organic Opportunity Set Halfdan North and Valdemar Bo South are high-value projects that will add low-cost barrels post-Tyra and support a sustainable, long-term cashflow profile Project Highlights Development Concept ▪ Net reserves of c. 11 – 16 mmboe(1) ▪ Five wells Valdemar Bo So
Slide 18: Our Approach to Sustainability
Our Approach to Sustainability Demonstrating Noreco’s commitment to date and our forward focus ▪ Noreco has invested > $1bn in delivering the project Safeguarding access Delivering to reliable and − Will produce energy to power equivalent of c. 1.5mm homes Tyra affordable energy − Will materially re
Slide 19: Financial Overview
Financial Overview
Slide 20: Financial Summary: Q4 and 2021
Financial Summary: Q4 and 2021 20 Performance supported by strong production and positive commodity prices ($mm) Strong Fundamentals: 175 565 Operational and Prices 150 135 Revenue 105 ▪ Revenue: c. 20% vs. Q3-2021 Q1 Q2 Q3 Q4 2021 ▪ EBITDA: c. 50% vs. Q3-2021 ($/boe) 30,5 32,7 30,8 30,2 27,0 Op
Slide 21: Hedges Provide Cashflow Visibility
Hedges Provide Cashflow Visibility Increasing Spot Market Exposure in 2022+ 2022 2023 2024 % of 2022 Production(1) H1 H2 H1 H2 H1 H2 Oil Price Volume 2.4 1.9 2.4 1.7 1.8 0.6 Hedges ‘000bbls ~60% – 65% Based on 2022 Price production guidance 55.8 55.6 51.7 54.8 61.3 64.9 USD/bbl 2022 2023 % of 2022 P
Slide 22: Robust Capital Structure and Liquidity Position
Robust Capital Structure and Liquidity Position Fully-funded to Deliver the Tyra Redevelopment Project Robust Capital Structure USD million Strong Liquidity Position USD mllion Stable with No Principal Maturities Pre-Tyra Fully-Funded to Tyra First Gas 100 223 185 25 1 285 123 1 162 175 1 075 Pre-Ty
Slide 23: Closing Remarks
Closing Remarks
Slide 24: Focused on Delivery
Focused on Delivery 24 Maximising Value: Today, Tomorrow and Long-Term Maximise Production from our operational hubs We Are Delivering Minimise Costs to support overall profitability Operationally Reduce Emissions through targeted interventions Unlocks > 1 Tcfe(1) to support long-term energy securit
Slide 25: Contact: ir@noreco.com
Contact: ir@noreco.com 17 March 2022