North Energy Asa · OSL:NORTH

North Energy Asa — Q4 2015 Earnings Presentation

18 slides from North Energy Asa's earnings presentation, Feb 25, 2016

  1. Slide 1: North Energy Q4 2015

    North Energy Q4 2015 Delivering on restructuring plan, assessing new growth opportunities 25 February 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  Q4 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  4. Slide 4: Responding to the adverse market conditions

    Responding to the adverse market conditions Key corporate actions Raising the Guarding inherent Evaluating various threshold for future values strategic options investments • Net G&A in 2016 slashed • Exploration wells must meet • Continued adverse market by 70 per cent compared stringent requiremen

  5. Slide 5: Q4 highlights and subsequent events

    Q4 highlights and subsequent events  Acquisition of Explora Petroleum announced in December  USD 2.5 million, financed through existing credit facilities and cash in hand  Transaction completed earlier in February, integration currently ongoing  Sale of Barents Sea licences PL 707 and 708  Cons

  6. Slide 6: Explora Petroleum in brief

    Explora Petroleum in brief  16 licences on the NCS  Interests in the Skarfjell and Grosbeak discoveries, both in PL 378 in the north- eastern North Sea  Skarfjell is currently estimated to contain 127 mmboe, Grosbeak 35 mmboe (approx. 4 mmboe net to North Energy). Additional upside in PL 378 from

  7. Slide 7: Skarfjell – a commercial discovery in the North Sea

    Skarfjell – a commercial discovery in the North Sea  Recoverable resources of 127 mmboe (NPD estimate)  Confirmed by appraisal and side- track in 2013  Approx. 10% of field in Explora licence PL 378  A cost sharing and cooperation agreement has been entered into with the neighbouring PL 418 lice

  8. Slide 8: Agenda

    Agenda  Q4 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  9. Slide 9: Profit & Loss Q4 2015

    Profit & Loss Q4 2015 NOK Million Q4 2015 Q3 2015 2015 2014 Gain/loss from licence sale 5,8 - 5,4 3,5 PL 708 MNOK 1,4 og PL 722 MNOK 4,4 Exploration expenses (64,4) (117,6) (414,8) (365,1) PL 510 MNOK 57,3 Payroll 0,3 (12,2) (41,5) (52,9) True up pension cost MNOK -13,5. Settlement cost MNOK 4 Other

  10. Slide 10: Balance Sheet 31 December 2015

    Balance Sheet 31 December 2015 NOK Million 31.12.2015 30.09.2015 31.12.2014 Assets Fixed assets 3,8 6,3 9,9 Capitalized drilling cost 0,0 4,4 11,5 Deferred tax asset 149,8 151,4 131,7 Incl. tax loss carried forward MNOK 151 Long term receivables 18,5 329,3 4,4 Tax receivable moved to short term Shor

  11. Slide 11: A healthy financial position

    A healthy financial position Net cash* position Q4 2015  Q4 2015 net cash position of NOK 188 20 million 62  Unused exploration loan facility NOK 697 million  Extended until 2017  Accordion option up to MNOK 1,150 * Excluding convertible long term loan balance of NOK 41 millions towards TGS and

  12. Slide 12: Extensive cost cutting measures showing results

    Extensive cost cutting measures showing results No. of employees* 50  Net G&A in 2016 slashed by 70 per cent 40 compared with 2014 30 20  2016 cash burn at a minimum 10 0 YE 2014 YE 2015 YE 2016  Robust cash position allows for No. of offices* opportunistic and selective approach to 5 new opportu

  13. Slide 13: Agenda

    Agenda  Q4 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  14. Slide 14: Licence portfolio

    Licence portfolio  Market conditions currently slowing down exploration  Commercial potential in remaining North licences under evaluation  Explora portfolio to be carefully assessed in coming months Licences expected after Q1 2016 North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.

  15. Slide 15: 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

  16. Slide 16: Agenda

    Agenda  Q4 highlights and subsequent events  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  17. Slide 17: Summary and outlook

    Summary and outlook  Extensive downsizing programme coming to completion  Burn rate slashed by 70% compared with 2014  Cost levels kept at minimum  No firm wells but opportunistic approach w.r.t. future activities  Financial position enabling new quality opportunities  However, very selective

  18. Slide 18: Q&A

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

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