North Energy Asa · OSL:NORTH

North Energy Asa — Q1 2016 Earnings Presentation

22 slides from North Energy Asa's earnings presentation, May 4, 2016

  1. Slide 1: North Energy Q1 2016

    North Energy Q1 2016 Broadened business scope and strengthening of management 4 May 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  Q1 highlights and subsequent events  New corporate and management structure  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  4. Slide 4: Q1 highlights and subsequent events

    Q1 highlights and subsequent events  Expanded business scope following General Meeting resolution  Pure exploration model challenged by adverse market conditions  Broadened business scope allowing the Company to investigate opportunities across the whole energy value chain  A new corporate and m

  5. Slide 5: Q1 highlights and subsequent events (cont.)

    Q1 highlights and subsequent events (cont.)  High grading of portfolio resulting in several licence divestments and relinquishments  Revised exploration strategy with higher commercial thresholds resulting in several licence divestments and relinquishments  A total of 25 licences have been divest

  6. Slide 6: Agenda

    Agenda  Q1 highlights and subsequent events  New corporate and management structure  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  7. Slide 7: Backdrop: E&P business model challenged by current price regime

    Backdrop: E&P business model challenged by current price regime Oil Map by Rystad Energy based on 2 May 2016 USD 46/bbl oil price North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  8. Slide 8: North Energy broadened its business scope following an EGM resolution in February

    North Energy broadened its business scope following an EGM resolution in February North Energy current corporate and management structure North Energy ASA New business North E&P AS North E&P segments North NorthE&P E&P North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  9. Slide 9: The proposed new business model is based on active ownership

    The proposed new business model is based on active ownership Proposal for North Energy new corporate and management structure North Energy ASA North Advisors AS Preference Ordinary Ordinary shares shares shares (20 %) (100%) (80 %) North Energy Capital AS Advisory agreement New business North E&P AS

  10. Slide 10: New structure will strengthen management resources and better align incentives

    New structure will strengthen management resources and better align incentives Proposal for North Energy new corporate and management structure North Energy ASA North Advisors AS Additional Preference distribution return ordinary shares North Energy Capital AS Management fee New business North E&P A

  11. Slide 11: Agenda

    Agenda  Q1 highlights and subsequent events  New corporate and management structure  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  12. Slide 12: Explora acquisition resulting in profit in Q1

    Explora acquisition resulting in profit in Q1 (North Energy group consolidated) NOK Million Q1 2016 Q1 2015 Q4 2015 2015 Gain/loss from licence sale 1,2 0,0 5,8 5,4 Sale PL707, true-up sale PL708 Exploration expenses (6,0) (117,1) (64,4) (414,8) No drilling expenses in Q1 2016 Payroll (16,7) (16,3)

  13. Slide 13: Business combination strengthening North Energy's financial position

    Business combination strengthening North Energy’s financial position  Fair value of assets and liabilities versus purchase consideration: NOK million Deferred tax asset 41 Working Capital 11 Cash 27 Tax refund receivable 238 Exploration loan -195 Net fair value 122 Purchase consideration -21 Gain r

  14. Slide 14: Total assets exceeding NOK 1 billion

    Total assets exceeding NOK 1 billion (North Energy group consolidated) NOK Million 31.03.2016 31.12.2015 31.12.2014 Comments on 31.03.2016 Assets Fixed assets 3,0 3,8 9,9 Capitalized drilling cost 0,0 0,0 11,5 Deferred tax asset 193,0 149,8 131,7 Def. Tax on loss carried forward Long term receivable

  15. Slide 15: A comfortable financial position

    A comfortable financial position  North Energy Group consolidated in all Net cash* position Q1 2016 figures 20  Net cash position of 62 NOK 182 million including convertible loans of NOK 41 million  Unused exploration loan facility NOK 442 million  New EFF combined for the two companies implemen

  16. Slide 16: Agenda

    Agenda  Q1 highlights and subsequent events  New corporate and management structure  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  17. Slide 17: Licence portfolio

    Licence portfolio  The 2015 revised exploration strategy raised North Energy’s commercial thresholds  Response to the adverse market conditions  High grading of portfolio resulting in several licence divestments and relinquishments  Year to date a total of 25 licences have been divested or relin

  18. Slide 18: Remaining active portfolio

    Remaining active portfolio License Prospect Interest Operator Location Rig DoD/BOK Deadline PL 378, C Skarfjell 17.5 Wintershall North Sea N/A Q1 2017* PL 757 Batur 30% Centrica Norwegian Sea N/A Q1 2017 PL 770 Saarikoski 20% Edison Barents Sea N/A Q1 2016** PL 719 Sandia/Scarecrow 20% Centrica Bare

  19. Slide 19: 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

  20. Slide 20: Agenda

    Agenda  Q1 highlights and subsequent events  New corporate and management structure  Financial update  Operational update  Outlook North Energy ASA · post@northenergy.no · (+47) 78 60 79 50 · www.northenergy.no

  21. Slide 21: Summary and outlook

    Summary and outlook  North Energy actively addressing challenging market conditions  Extensive cost cutting initiatives completed, further cost reductions due in 2016  Broadened business scope and strengthened management  Opportunistic approach w.r.t. future activities  Financial position enabl

  22. Slide 22: Q&A

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

North Energy — Q1 2016 Earnings Presentation on 6ix