Slide 1: OKEA ASA Presentation of second quarter 2023
OKEA ASA Presentation of second quarter 2023 13 July 2023
Slide 2: Cautionary statement
Cautionary statement • This presentation contains forward looking information • Forward looking information is based on management assumptions and analysis • Actual experience may differ, and those differences may be material • Forward looking information is subject to significant uncertainties and
Slide 3: OKEA second quarter 2023 results highlights
OKEA second quarter 2023 results Highlights • Operation – Production of 22.3 kboepd – Strong production performance from Brage, Ivar Aasen and Gjøa; Draugen production impacted by planned turnaround – Yme and Nova performance improving; further mitigating actions at Nova planned executed in Q3 2023
Slide 4: Quarterly key figures
Quarterly key figures (Previous quarter in brackets) Serious incidents Production Net CF from ops. frequency kboepd NOK million per million work hours 2.5 22.3 1,401 (2.7) (22.2) (1,318) CO2 emissions Production expense Dividends paid intensity NOK/boe NOK million kg per boe produced 23* 223 104 (24
Slide 5: Production volume and reliability
Production volume and reliability Production* (kboepd) 25 Nova 22.2 22.3 Yme 19.9 1.1 1.7 20 2.4 Ivar Aasen 0.6 2.9 1.7 Gjøa 16.0 16.1 3.1 2.5 3.2 Brage 15 1.3 1.4 1.0 Draugen 6.8 6.8 6.2 10 7.1 7.4 1.5 2.2 3.5 5 7.1 6.3 6.8 6.6 4.8 0 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Production reliability (%) – last 5
Slide 6: Operational update
Operational update Draugen (op. WI 44.56%) Brage (op. WI 35.2%) • Hasselmus tie-back project progressing • Production at Talisker East started in May; according to plan; start up expected in Q4 boosting production at Brage 2023 with plateau production at 4.4 kboepd • Additional wells to come onstrea
Slide 7: Statfjord 28% - progressing towards closing in Q4 2023
Statfjord 28% - progressing towards closing in Q4 2023 In line with growth strategy; increasing production to > 40,000 barrels per day in 2024 • In March, OKEA entered into an agreement with Equinor to acquire 28% WI in PL037 (Statfjord Area) with effective date 1 January 2023 • The transaction sign
Slide 8: Financials
Financials
Slide 9: Oil and gas production, sales and revenues - per asset
Oil and gas production, sales and revenues - per asset Production* (kboepd) Sold volumes (kboepd) Nova Nova 40 40 37.9 Yme Yme 0.9 35 Ivar Aasen 35 3.6 Ivar Aasen Gjøa 4.5 Gjøa - net tie-ins 30 30 Brage 0.4 Gjøa 25 Draugen 25 7.6 22.8 Brage 22.2 22.3 19.9 1.1 1.7 2.5 Draugen Q2 23 20 0.6 2.4 2.9 Q2
Slide 10: Realised liquids prices
Realised liquids prices Lifted volumes vs Dated Brent – Q2 2022/2023e Lifted volumes vs Dated Brent USD/boe kboe USD/boe 135 950 90 130 900 85 850 80 78.0 125 1.1 76.4 800 0.6 1.2 75 120 6.3 70.1 750 70 115 700 653 65 632 637 645 630 618 650 110 60 597 587 600 105 55 550 50 100 485 500 45 95 450 40
Slide 11: Gas market prices and sold volumes
Gas market prices and sold volumes Realised gas price exceeds market prices due to gains on fixed price contracts Sold volumes vs average NBP/Heren gas market prices USD/boe Kboe Monthly average USD/boe Volumes kboe 280 280 260 260 240 240 227 220 220 198 200 200 187 180 180 181 180 173 173 174 171
Slide 12: Income statement
Income statement Q2 23 comments Operating income • Revenue from sales of petroleum products of NOK 1 641 million; includes realised gain on forward gas contracts of NOK 137 million Figures in NOK million Q2 23 Q1 23 Q2 22 H1 2023 H1 2022 • Other income of NOK 66 million Total operating income 1 707
Slide 13: Statement of financial position
Statement of financial position Figures in NOK million Assets 30.06.2023 31.03.2023 31.12.2022 Q2 23 comments Goodwill 1 292 1 292 1 297 Oil and gas properties 6 416 6 496 6 556 • Goodwill of NOK 1 292 million Asset retirement reimbursement right 3 486 3 760 3 662 Trade and other receivables 1 362 1
Slide 14: Cash development Q2 2023
Cash development Q2 2023 NOK million 3 500 +805 333 3 000 513 2 500 1 734 22 12 68 8 27 104 2 000 +701 1 500 2 439 2 335 1 000 1 634 500 0 Total liquidity Operating Taxes Investment Business Other Interest Lease debt FX effect on Total liquidity Dividend Total liquidity 31.03.23 activities activitie
Slide 15: Cash development YTD per Q2 2023
Cash development YTD per Q2 2023 NOK million 4 500 +1 439 4 000 499 3 500 925 3 000 3 219 297 23 79 2 500 17 59 208 2 000 +1 231 1 500 2 543 2 335 1 000 500 1 104 0 Total liquidity Operating Taxes Investment Business Other Interest Lease debt FX effect on Total liquidity Dividend Total liquidity 31.
Slide 16: Dividends according to plan
Dividends according to plan Dividend of NOK 1.00 per share to be paid in September NOK NOK NOK NOK NOK NOK NOK 0.90 1.00 1.00 1.00 1.00 1.00 Capital allocation principles /share /share /share /share /share /share 1.00 /share Maintain 1 financial flexibility Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
Slide 17: Outlook
Outlook No changes in guidance Production guidance of 22–25 kboepd in 2023 • Draugen turnaround completed in Q2 Production • Maintenance at Gjøa with expected downtime of 4-6 days and 7 days shut-in of the subsea wells (reduces production by ~50% during shut-in) at Draugen scheduled for Q3 • The gui
Slide 18: Summary
Summary ww
Slide 19: Summary
Summary Continuing to deliver on growth strategy; Statfjord acquisition progressing towards closing in Q4 2023 Production from Talisker East started in May; boosting production at Brage Strong operational performance at Brage, Draugen, Ivar Aasen and Gjøa; Yme and Nova performance improving Hasselmu
Slide 20: Q&A
Q&A Growth Value creation Capital discipline
Slide 21: Forward-looking information
Forward-looking information This presentation contains certain statements and information that constitutes "forward-looking information” and relates to future events, including the Company’s future performance, business prospects or opportunities. Forward-looking information is generally identifiabl