North Energy Asa · OSL:NORTH

North Energy Asa — Q1 2017 Earnings Presentation

17 slides from North Energy Asa's earnings presentation, May 10, 2017

  1. Slide 1: North Energy Q1 2017

    North Energy Q1 2017 On track for further value creation 10 May 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: North Energy ASA Group structure

    North Energy ASA Group structure North Energy ASA North Energy Capital AS 100% 28% Other investments Description: NCS focused E&P Subsea/IMR service company provider Book value Q1: 247 MNOK* 70 MNOK 44 MNOK (* Net asset) North Energy ASA · post@northenergy.no · (+47) 22 01 79 50 · www.northenergy.no

  4. Slide 4: Agenda

    Agenda  Q1 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

  5. Slide 5: Q1 highlights and subsequent events

    Q1 highlights and subsequent events  North E&P – further reduction in license portfolio  Licence portfolio reduced further with two remaining licences as of 31 March - no major investment commitments left  A rebuild of the portfolio will require an improvement in market fundamentals  Increased o

  6. Slide 6: Corporate and strategic matters

    Corporate and strategic matters  North Energy ASA’s current and future strategic direction  The Company has transitioned into an industrial holding company focused on value creation through energy and energy related investments  Majority of assets concentrated in E&P business with new initiatives

  7. Slide 7: Agenda

    Agenda  Q1 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

  8. Slide 8: North E&P

    North E&P Licence portfolio reduced further during the quarter  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  Two remaining licences as per 31 March  Signific

  9. Slide 9: Reach Subsea

    Reach Subsea Increased ownership through Accello Partners AS and private placement  A subsea service company with an impressive track record in a weak market  Flexible business model and competitive cost base and with a strong management team  Positioned for value accretive growth initiatives  N

  10. Slide 10: Reach Subsea – Financial effects Q1

    Reach Subsea – Financial effects Q1 Event Financial effect Exchange of North Energy Capital’s shares in NOK 8.4 million in gain, Reach for shares in Accello, accounting effect reported as “financial income” based on Reach share price on closing of transaction (NOK 2.35)* Mark-to-market based on Reac

  11. Slide 11: Agenda

    Agenda  Q1 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

  12. Slide 12: Profit & Loss Q1 2017

    Profit & Loss Q1 2017 North Energy group consolidated NOK Million Q1 2017 Q4 2016 Q1 2016 2016 Gain/loss from licence sale - 4,5 1,2 14,0 Sale of PL378, 719, 762 (Q4'16) Exploration expenses 0,9 (11,6) (6,0) (29,1) Adjustment previously owned licences Payroll (4,5) 1,7 (16,7) (32,5) Pension adjustme

  13. Slide 13: Balance Sheet 31 March 2017

    Balance Sheet 31 March 2017 North Energy group consolidated NOK Million 31.03.2017 31.12.2016 31.12.2015 Comments on 31.03.2017 Assets Fixed assets 0,8 1,3 3,8 Capitalized drilling cost - - 0,0 Deferred tax asset 197,8 207,3 149,8 Mainly deferred tax on LCF Investments 114,3 51,3 Shares, bonds, asso

  14. Slide 14: Net cash position Q1 2017

    Net cash position Q1 2017 North Energy consolidated net cash position (MNOK)  Consolidated net cash position of NOK 56 million  Impacted by (MNOK): 62  Dividend payments 30  New investments 63 North Energy Capital total investments (MNOK)  Significant increase in NECs 120 investments 110 100 

  15. Slide 15: Agenda

    Agenda  Q1 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  Low cash burn combined with dividend and investment capacity  Re-build of NCS portfolio requires improved market fundamentals  Activity kept at a low level for now  Actively pursuing new market opportunities  Focus on strateg

  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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