Bluenord Asa · OSL:BNOR
Bluenord Asa — Q1 2023 Earnings Presentation
33 slides from Bluenord Asa's earnings presentation, May 10, 2023
Slide 1: Focused on Delivery
Focused on Delivery First Quarter 2023 10 May 2023
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION (THE “INFORMATION MATERIAL”) HAS BEEN PRODUCED AND DELIVERED BY NORWEGIAN BY ATTENDING OR RECEIVING THIS INFORMATION MATERIAL YOU ACKNOWLEDGE THAT YOU WILL BE ENERGY COMPANY ASA (THE “COMPANY”). THIS INFORMATION MATERIAL DOES NOT CONSTITUTE AN OFFER, RESPONSIBLE FOR YOUR
Slide 3: Today's BlueNord Presenters
Today’s BlueNord Presenters Euan Shirlaw Marianne Eide Jacqueline Lindmark Boye Cathrine Torgersen Chief Executive Officer Chief Operating Officer EVP Finance EVP Investor Relations & ESG 3
Slide 4: First Quarter 2023 Highlights
First Quarter Strong Operational Growing 2023 Highlights Performance Net Production § Q1-23 production of 26.6mboe/d, § Expected production of 55mboe/d in Strong operational and above guidance for the quarter 2025 per long-term plan financial performance, § High level of additive activities, which §
Slide 5: Strategically Important Assets
Strategically DUC Ownership 1 Oil pipeline to Fredericia 2 Gas pipeline to Nybro TotalEnergies Important Assets 20.0% BlueNord Nordsefonden 3 Gas pipeline to Den Helder Gas cross-border points 43.2% We hold a 36.8% non- operated working interest 36.8% in the DUC, which is a key contributor to EU ene
Slide 6: Clear Strategic Priorities
Clear Strategic Priorities 01. § Strong Production demonstrated by low decline in 2022 We delivered significant Delivering § Active Management with activities to continue to 2025 progress against our strategic Operationally § Attractive Short-Cycle Investments being pursued priorities in 2022, and a
Slide 7: Disciplined Approach
Disciplined Capital returns to shareholders prioritised Approach § Sustainable, long-term dividend profile supported by BlueNord’s balance sheet § Broad opportunity set for organic growth, but must support long-term returns profile Prioritise capital returns, with – Seek to add value creation option
Slide 8: We Are Delivering Operationally
We Are Delivering Operationally 01 8
Slide 9: Excellent Operational Performance
Excellent Q1 2023 saw strong performance with successful Operational optimisation activities and high operational efficiency Performance § 20 well interventions, work-overs or stimulations performed § Significant gains from Dan restimulation activity Production in Q1 2023 of Outlook for 2023 remains
Slide 10: High Near-Term Activity Levels
High Near-Term Ongoing activity to support production, including Activity Levels restimulations, workovers and reinstatements § Will continue to at least end Q1-2025 while Shelf Drilling Winner on contract WROM and Restimulation § Well Reservoir Optimisation and Management Programme also ongoing act
Slide 11: We Are Delivering Tyra
We Are Delivering Tyra 01 11
Slide 12: Tyra Overview
Tyra Overview Strategically important gas field in the Danish North Sea § All eight offshore modules installed, HUC underway and first production in Dec-23(1) § Once onstream, redeveloped Tyra will produce to 2042 (concession expiry) Tyra will secure energy BlueNord post-Tyra start-up: supply for De
Slide 13: Tyra Offshore HUC Status
Tyra Offshore HUC Status Significant physical progress made with respect to risers, wells and sea water cooling system Focus remains on maximising offshore productivity Tyra East Wellhead Tyra West Wellhead TEG and Riser Platforms and Riser Platforms Module § Xmas tree Scope 1a complete, § Tyra West
Slide 14: Tyra Milestones
Tyra Milestones Progress towards Dec-23 first gas (P50 basis) 2022 and 2023 2023 (P50) 2024 (P50) Completed Upcoming Pre-First Gas Upcoming Post-First Gas § TEH Living Quarter in Regular Use § TEG Sea Water Lift Pump § Harald Onstream § Offshore Installation Complete § First GTG Running on Diesel (w
Slide 15: Tyra Outlook: Cost and Schedule
Tyra Outlook: Schedule and capex still in line with previous guidance Cost and Schedule § Remaining net capex of ~$150mm to reach first gas (P50 Basis) First gas due expected in Net Capex to First Gas (P50) First Gas Range winter 2023/24, with a P50 ~$242mm (USD million) Winter 2023/24 estimate of D
Slide 16: Tyra Outlook: Operating Cost
Tyra Outlook: Tyra drives significant reduction in forecast lifting cost Operating Cost § Also supported by incremental low-opex infill volumes from 2023 onwards BlueNord’s forecast lifting Lifting Cost: Absolute(1) Daily Production Lifting Cost: Relative(1) cost(1) with Tyra onstream (Net, USD mill
Slide 17: We Are Delivering Our Potential
We Are Delivering Our Potential 01 17
Slide 18: BlueNord ESG Approach
BlueNord ESG Approach E § Increased Transparency on emissions, improved routines § Implementation of TCFD(1) Several steps taken during Q1 Better to strengthen ESG work and Transparency § Preparation for ESRS(2) in 2025 the overall transparency of the Company S § Alignment with Norwegian Transparenc
Slide 19: Balancing Energy Security and the Energy Transition
Balancing Energy Providing Energy for Europe Security and the Today, Tomorrow and for our Net Zero Future Energy Transition Energy Energy Security Transition Providing energy for Europe today, tomorrow § BlueNord will supply Denmark and Europe with the energy is needs, for as long as it needs it § G
Slide 20: BlueNord's Long-Term Plan
BlueNord’s Long- Robust plan, maximising use of existing infrastructure, Term Plan to add more than 60mmboe of resources for BlueNord § Strong economic profile given low capex and opex, with gas volumes prioritised Illustrative activity plan(1) reflects the objective of the partnership to Maximise S
Slide 21: Long-Term Plan Developments
Long-Term Plan Three Development Projects in the Long-Term Plan Developments § Three unmanned jackets tied-back to existing infrastructure in the DUC § Attractive economics with low-cost volumes supporting long-term cash generation Low-Cost Volumes to Support a Sustainable, Valdemar Bo South Adda Ha
Slide 22: Long-Term Plan Plateau Production
Long-Term Plan Production Forecast: 2023 Long-Term Plan Plateau Production 60 § Includes 2P reserves and Near-Term 2C resources(1) (currently unsanctioned) (mboe/d) Long-term potential exists to +55mboe/d in 2025 mitigate decline and maintain 50 plateau production levels after Tyra on stream 40 +40m
Slide 23: Adding Further Optionality
Adding Further Strengthening BlueNord’s portfolio in Denmark Optionality Elly Luke Licence Application Ambition to add further § Discovered recoverable resources of optionality to BlueNord’s 30-60mmboe with 90% gas weighting portfolio by strengthening in Denmark § Licence award expected late 2023 El
Slide 24: Financial Overview
Financial Overview 01 24
Slide 25: Q1-23 Earnings Highlights
Q1-23 Earnings Revenue (USD million) Oil Revenue Gas Revenue Opex(1) (USD million) Direct Field Opex Transportation Highlights 265 294 Production G&A 90 87 230 221 79 Strong asset performance 179 79 143 71 69 underpinning continued 56 131 107 robust earnings 185 149 Opex activities related to 122 97
Slide 26: Income Statement: Q1-2023
Income Statement: Income Statement Q1-2023 (USD million) Q1 23 Q4 22 Revenue impacted by lower prices, partly offset by higher Revenue 221 230 lifted oil volumes Operating expenses (Opex)(1) (87) (90) Other production expenses Other production expenses(1) (6) 10 increased due to lower under-lift G&A
Slide 27: Balance Sheet: Q1-2023
Balance Sheet: Balance Sheet Q1-2023 (USD million) Assets Q1 23 Q4 22 PP&E additions primarily Tyra PP&E(1) 2,107 2,072 Redevelopment Project Deferred tax 325 349 Other non-current assets 211 205 Reduced deferred tax Derivatives (current & non-current) 150 165 consistent with positive earnings Cash
Slide 28: Cashflow: Q1-2023
Cashflow: Cashflow Reconciliation Liquidity Q1-2023 (USD million) (USD million) Post-Tax Cash Post-tax cash earnings during 157 10 Earnings 200 529 the first quarter of USD 147 147 62 million supporting a strong liquidity position Fully-funded for the Tyra Redevelopment Project 329 25 60 Operating F
Slide 29: Robust Capital Structure
Robust Capital Robust Capital Structure Structure (USD million) 214 1,189 (329) Stable balance sheet reflects the conversion of NOR13 to NOR15 finalised in January and 175 975 final consideration of USD 25m 860 paid to Shell in March 800 No principal maturities pre-Tyra start-up (1) Drawn Debt RBL N
Slide 30: Hedge Portfolio: Q1-2023
Hedge Portfolio: Commodity price hedging to provide cashflow visibility Q1-2023 Oil Price Hedging Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Oil Volume (bbl) 1,200,000 870,100 870,100 900,000 900,000 432,000 432,000 315,000 315,000 Gas hedging for 2023 and Hedge Price ($/bbl) 51.7 55.5 55
Slide 31: Closing Reflections
Closing Reflections 01 31
Slide 32: Closing Reflections
Closing Reflections 01. § Strong production in Q1 above guidance Portfolio of attractive short, Delivering § A proactive team focused on value-additive activities medium and long-term Operationally § Attractive Short-Cycle Investments being pursued opportunities Positioning BlueNord to become a lead
Slide 33: Q&A
Q&A 33