Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company ASA (Noreco) — Q1 2015 Earnings Presentation
27 slides from Bluenord Asa's earnings presentation, Jun 1, 2015
Slide 1: First quarter 2015
First quarter 2015 Presentation material 1 June 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. 4-5 • Operations – Production p. 6 – Exploration p. 7-11 • Key financials – First quarter p. 12-15 Tommy Sundt, Chief Executive Officer • Concluding remarks p. 16-17 Questions & Answers • Reference material p. 18 For questions, please email: investorrelations@n
Slide 4: First quarter headlines
First quarter headlines • Restructuring completed. No longer in distress – NOK 2 billion bonds converted to equity, bondholders owning 92 per cent of Noreco post restructuring – Significant IFRS accounting effects related to restructuring in Q1, resulting in NOK 1.8 billion net profit after tax – Ne
Slide 5: Current company structure
Current company structure Two structures ring-fenced, separate loan agreements Norwegian Energy • New group structure Company ASA involving ring-fence around NOR 06’s Norwegian Energy pledged assets in Company (UK) Ltd Altinex AS Noreco Norway (ring- All UK exploration activity fence 2) Noreco Norec
Slide 6: Huntington back on stream, limited contribution from Nini and Cecilie
Huntington back on stream, limited contribution from Nini and Cecilie Noreco production • Huntington restricted (quarterly average in boepd) through Q1. Back on stream 7 000 in April 6 000 • Nini and Cecilie production claimed by other licence 5 000 partners Oselvar 4 000 Enoch • Lulita affected by
Slide 7: Exploration
Exploration Y NORECO
Slide 8: DK 09/95 – Xana Discovery
DK 09/95 – Xana Discovery Noreco 16% - Maersk operated • Well encountered light oil and gas bearing sands in Upper Jurassic interval, trapped by up-dip fault • Well drilled with Noble Sam Turner rig to total depth of 5124 meters sub sea • Well completed successfully and all data acquired. Well was n
Slide 9: UK PL1889 – Niobe Prospect
UK PL1889 – Niobe Prospect Noreco 22.5%* - Suncor operated • Upper Jurassic stratigraphic pinch-out trap, up dip of small oil discovery • Located in Inner Moray Firth in proven oil province east of Beatrice Field • 30% CoS – Primary risk element: Trap • 7 – 157 mmboe (gross) • Expected spud beginnin
Slide 10: NO PL616 – Haribo Prospect
NO PL616 – Haribo Prospect Noreco 20 % - Edison operated • Cretaceous “chalk porosity pod” prospect separated from Valhall by impermeable tight chalk • Located in Central North Sea, on south western flank of Valhall Field, and west of Hod Field • 42% CoS – Primary risk element: Trap • 69 – 192 mmboe
Slide 11: Drilling programme
Exploration and appraisal Drilling programme Noreco Opera- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Well share tor Pot. vol.1 2015 2015 2015 2015 2016 2016 2016 2016 DK 9/95 under Plugged and 16 % Maersk Xana (Gita S) review abandoned P1889 22.5 %3 Suncor 7 – 157 Niobe PL616 20 % Edison 69-1922 Haribo PL492 20 % Lun
Slide 12: Key financials
Key financials Y NORECO 12
Slide 13: Income statement
Income statement Q1 ‘15 Q1 ’15 Q4 ’14 FY 14 NOK million Segments IFRS IFRS IFRS Total revenues 114 114 145 1 143 • Revenues - Low Production expenses (139) (139) (140) (587) output from Huntington Exploration expenses (129) (129) (9) (837) due to restrictions. Lapse of production Payroll (22) (22) (
Slide 14: Revenue & EBITDA
Revenue & EBITDA (NOK mill) Revenues EBITDA / Exploration expenses 450 300 400 200 350 100 300 0 -100 250 -200 200 -300 150 -400 100 -500 -600 50 -700 0 -800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2013 2014 2013 2014 2015 Q1 revenues marked by restrictions to EBITDA before expl E
Slide 15: Balance sheet
Balance sheet NOK million 31.03.15 31.03.15 31.12.14 30.09.14 Segments IFRS IFRS IFRS Assets Equity impacted by Non-current assets 1 750 1 675 2 425 3 532 restructuring Current assets 1 036 1 036 565 608 • Increase due to Cash (non-restricted) 685 685 644 736 conversion of bond debt to equity Total
Slide 16: Concluding remarks
Concluding remarks Y NORECO
Slide 17: Strategy and priorities
Strategy and priorities • Towards an amicable solution in Denmark • Disciplined approach to operation – Continue to work with operators to secure cost efficient production – Carefully deliver on existing commitments, including Niobe and Haribo wells – Limit additional investment and exploration comm
Slide 18: Additional information
Table of contents Noreco at a glance 19 Production Production per field 20 Revenue per field 21 Production expenses per field 22 Additional Balance sheet specifications Producing assets 23 information Intangible assets Siri insurance claim 24 25 Largest shareholders 26 18
Slide 19: Noreco at a glance
Noreco at a glance Exploration Production (number of licences1) (in boepd) 7 000 3 11 6 000 1 5 000 4 000 NOR 3 000 Norway Denmark UK DEN 2 000 1 000 UK Year 2012 2013 2014 15E 0 Wells1 8 4 2 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1 Exploration licences and 13 13 13 13 14 14 14 14 15 exploration and appraisal
Slide 20: Production per field
Production per field (boepd) Noreco Field share Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Oselvar 15 % 454 497 528 550 574 850 Enoch 4.36 % 0 0 0 0 0 0 Lulita 28.2 % 101 136 192 172 330 196 Nini1 30 % 644 2 012 1 722 1 839 1 415 0 Cecilie1 61 % 255 286 152 15 0 0 Huntington 20 % 1 783 616 3 160 3 187 4 64
Slide 21: Revenue per field
Revenue per field (NOK million) Noreco Field share Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Oselvar 15 % 16 19 25 25 30 40 Enoch 4.36 % 0 2 0 0 0 0 Lulita 28.2 % 3 5 9 8 15 10 Nini1 30 % 23 85 95 113 82 0 Cecilie1 61 % 9 10 9 1 0 0 Huntington 20 % 64 23 158 172 257 206 Total 114 145 296 318 384 255 1 Nor
Slide 22: Production expenses per field
Production expenses per field (NOK million) Noreco Field share Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Oselvar 15 % 5 11 7 6 6 14 Enoch 4.36 % 1 1 0 0 2 15 Lulita 28.2 % 1 2 1 2 3 4 Nini* 30 % 46 54 95 55 48 38 Cecilie* 61 % 18 16 14 7 14 7 Huntington 20 % 66 55 59 62 66 60 Total 139 140 177 132 138 139
Slide 23: Balance sheet specifications
Balance sheet specifications Producing assets (NOK million) Gross Asset Deferred book retirement tax Net book Asset value obligation (-asset)* value Oselvar 0 66 -340 274 Enoch 0 8 -6 -2 Lulita 40 13 6 20 Nini and Cecilie 2 405 -120 -283 Huntington Forties 366 183 -58 241 Total producing assets 408
Slide 24: Balance sheet specifications
Balance sheet specifications Intangible assets (NOK million) Gross Deferred Net book tax book Asset value (-asset) value Goodwill Denmark 7 0 7 Total Goodwill 7 0 7 Gohta 253 197 56 Xana 0 0 0 Niobe 9 0 9 Other licences 5 4 1 Total licence and capitalised 267 201 66 exploration expenditures 24
Slide 25: Siri insurance claim
Siri insurance claim Status o Gross book value at the end of Q1 is NOK 479 mill, NOK 419 mill after 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 now concluded o Underwriters req
Slide 26: Largest shareholders
Largest shareholders Number of % of % of Investor shares top 20 total Type Country EUROCLEAR BANK S.A./N.V. ('BA') 1,164,424 25.49% 16.41% Nom. BEL GOLDMAN SACHS & CO EQUITY SEGREGAT 965,864 21.14% 13.61% Nom. USA MP PENSJON PK 337,612 7.39% 4.76% Comp. NOR STATE STREET BANK & TRUST COMPANY 310,725
Slide 27: YZ NORECO
YZ NORECO
Norwegian Energy Company ASA (Noreco) — Q1 2015 Earnings Presentation on 6ix