North Energy Asa · OSL:NORTH

North Energy Asa — Q4 2016 Earnings Presentation

17 slides from North Energy Asa's earnings presentation, Feb 16, 2017

  1. Slide 1: North Energy Q4 2016

    North Energy Q4 2016 Successful turnaround and proposed dividend 16 February 2017 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  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  4. Slide 4: Q4 highlights and subsequent events

    Q4 highlights and subsequent events  On track to develop new business areas  Strategic stake in Reach Subsea ASA  NOK 51.3 million in total Investments as of 31 December  Strong financial position  Net cash end Q4 2016 of NOK 154 million  No major investment commitments left in E&P licence por

  5. Slide 5: 2016 full year highlights

    2016 full year highlights  Delivering on all aspects of restructuring and cost cutting programme  Exploration and licences costs reduced by > 90 per cent  Number of employees reduced by 2/3 over the last two years  Major portfolio clean up following high grading process  Number of licences redu

  6. Slide 6: Agenda

    Agenda  Q4 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  7. Slide 7: Licence portfolio update

    Licence portfolio update  The 2015 revised exploration strategy raised North Energy’s commercial thresholds  Response to the adverse market conditions  The result: A significant high grading of the portfolio  16 licences acquired through Explora transaction  Year to date the Company has diveste

  8. Slide 8: North Energy's E&P strategy

    North Energy’s E&P strategy Clearly defined core areas Participate in licensing rounds Monitor the farm-in market Evaluating M&A opportunities Stringent commercial thresholds North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  9. Slide 9: Strategic stake in Reach Subsea

    Strategic stake in Reach Subsea  A subsea service company with an impressive track record in a weak market – a company we know well  Flexible business model and competitive cost base  Strong and well reputed management team  Positioned for value accretive growth initiatives  North position as n

  10. Slide 10: Agenda

    Agenda  Q4 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  11. Slide 11: Profit & Loss Q4 2016

    Profit & Loss Q4 2016 (North Energy group consolidated) NOK Million Q4 2016 Q4 2015 2016 2015 Gain/loss from licence sale 4,5 5,8 14,0 5,4 Sale of PL378, 719, 762 Exploration expenses (11,6) (64,4) (29,1) (415,2) Licences work program Payroll 1,7 0,3 (32,5) (40,3) Incl. pension adjustment Other oper

  12. Slide 12: Cost levels brought to a minimum

    Cost levels brought to a minimum  Exploration and licence expenses down 93 percent Y/Y as per 31 Dec  No. of licences reduced from 22 to 4 following strict high grading process  No drilling activity in 2016 and no commitments going forward  Cost levels expected to remain at low levels  Very sel

  13. Slide 13: Balance Sheet 31 December 2016

    Balance Sheet 31 December 2016 (North Energy group consolidated) NOK Million 31.12.2016 30.09.2016 31.12.2015 Comments on 31.12.2016 Assets Fixed assets 1,3 1,8 3,8 Capitalized drilling cost - 0,0 0,0 Deferred tax asset 207,3 193,0 149,8 Def. tax on loss carried forward Investments 51,3 41,2 Shares

  14. Slide 14: Solid net cash position

    Solid net cash position (North Energy group consolidated) Net cash position Q4 2016  Net cash position of NOK 20 154 million 62  2015 tax refund settled in Q4 as expected  Total exploration loan facility lowered to NOK 200 million after repayment of loan  Solid financial position allowing divide

  15. Slide 15: Agenda

    Agenda  Q4 highlights and subsequent events  Operational update  Financial update  Summary and outlook North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  16. Slide 16: Summary and outlook

    Summary and outlook  Comfortably positioned in a challenging market  Cost levels brought to a minimum, no major remaining investment commitments  NOK 0.25 per share proposed cash dividend to be resolved at upcoming general meeting  Still positive to E&P despite portfolio clean up  However, stri

  17. Slide 17: Q&A

    Q&A North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

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