OSLO,Norway, Nov. 11, 2020
/PRNewswire/ -- Norwegian Energy Company ASA ("Noreco" or "the
Company") today announced its third quarter 2020 results. The third
quarter results were strong both financially and operationally. The
Company's financial performance remains resilient, with an adjusted
EBITDA of USD 104 million and an
operating cash flow of USD 111
million during the quarter.
Highlights:
- Net production of 28.7 thousand barrels of oil equivalents per
day ("mboepd")
- Adjusted EBITDA of USD 104
million
- Cash flow from operating activities of USD 111 million
- Realised oil price for the period of 75.3 USD/boe
The operational performance of the Company during the third
quarter was stable with net production of 28.7 mboepd which is in
the upper range of guidance. The early and proactive approach taken
by the DUC operator to mitigate the impact of the pandemic
continued to safeguard business continuity. The Tyra Redevelopment
project reached an important milestone in September, when first
delivery of two new jackets from the yards were safely installed
offshore. Future milestones are related to completing topsides
fabrications and offshore installations. As a result of the
COVID-19 pandemic first gas from Tyra is revised, from 2022 to Q2
2023, while the initial budget remains unchanged.
The financials for the third quarter demonstrate the significant
value of Noreco's hedging arrangements. Price protection,
with liquids production fully hedged for 2020, supported revenues
of USD 157 million and a realised
liquids price of USD 75.3 per barrel,
compared to average dated Brent during the same period of
USD 42.7 per barrel. Including the
contribution from the volume protection arrangements with Shell,
the Company generated USD 104 million
of adjusted EBITDA during the third quarter and an operational cash
flow of USD 111
million.
"For the third consecutive quarter, in a globally challenging
year to both our society and the sector, Noreco demonstrates
financial and operational robustness. The benefit we are
receiving today from our hedging strategy, which was put in place
in 2018, reinforces the Company's commercial acumen and proactive
approach to managing risk. We have delivered 2020 Tyra
Redevelopment milestones per plan, but the COVID-19 impact in the
fabrication yards has led to a revised schedule of Tyra first gas,
shifting from 2022 to Q2 2023. With an unchanged budget and a new
timeline, we will continue to work towards delivering a
state-of-the-art facility that will create further value to our
stakeholders", said David B.
Cook, Chief Executive Officer in Noreco.
The report and investor presentation may be downloaded from the
Company's website www.noreco.com or www.newsweb.no.
Chief Executive Officer, David B.
Cook and Chief Financial Officer, Euan Shirlaw will present the third quarter
results in an earnings call today at 12:00
CET..
To join audiocast:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20201111_8
Contacts:
Euan Shirlaw,
CFO
Phone: +44 7979 690622
Email: es@noreco.com
Cathrine Torgersen
EVP Investor Relations & Communications
Phone: +47 91 52 85 01
Email: ct@noreco.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/noreco/r/noreco-announces-third-quarter-2020-results,c3234924
The following files are available for download:
https://mb.cision.com/Main/4225/3234924/1333438.pdf
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Noreco Q3 2020
Report
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https://mb.cision.com/Public/4225/3234924/9462fe1799e7a546.pdf
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Noreco Q3 2020
Presentation
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