Noreco Announce Third Quarter 2022 Results: Operational and Financial Outperformance

OSLO, Norway , Oct. 26, 2022 /PRNewswire/ -- Norwegian Energy Company ASA ("Noreco" or the "Company") today published its third quarter 2022 results. The Company's producing assets continued to deliver strongly, with production above September's quarterly guidance for Q3, resulting in a robust financial result that further underpins the value of Noreco's portfolio of Danish upstream assets.

 Highlights:

• Hydrocarbon production of 25.1 mboepd, above quarterly guidance
• Total Revenues of USD 294 million, with YTD Revenues of USD 737 million
• EBITDA of USD 198 million, YTD USD 471 million
• Cash flow from operating activities of USD 215 million and USD 486 million YTD
• Free Cash Flow of USD 131 million and YTD 251 million
• Several milestones on Tyra II achieved, further de-risking the project

Net hydrocarbon production for the quarter of 25.1 mboepd.  This is above the latest guidance published for Q3 of 24 - 25 mboepd and has also allowed the Company to positively revise the full year 2022 guidance for the fourth time to 26.5 – 27 mboepd. The overarching strong production trend of 2022 continued during the quarter and was further strengthened by the successful Halfdan well restimulation campaign which delivered approximately 2 mboepd of additional gas volumes. During the quarter the company also carried out a well-managed and planned 21 days maintenance shut-in of the NOGAT pipeline

The Tyra Redevelopment project reached several major milestones during the latter part of the quarter following the COVID-19 driven revision of the Tyra start-up date from Q2 2023 to winter 2023/2024. On 1 September, Noreco announced the successful sail-away of the process module (the "TEG") from the yard in Batam and on 4 October Heerema Marine Contractors' Sleipnir lifted and installed the 17,000 metric tons heavy TEG at the Tyra field, an offshore lift that set a new world record. During the five following days, the two remaining bridges and flare tower were lifted in place.  Tyra II now has its final shape with all eight platforms in place and all major lifts and installations safely completed.

The financial result for third quarter shows a continued strong development with revenues of USD 294 million and EBITDA of USD 198 million.  Free Cash Flow generation in the quarter was USD 131 million prior to the voluntary and redrawable USD 100 million repayment of the Reserve Based Lending facility (the "RBL"). As a result, the Company had total liquidity of USD 473 million at the end of the quarter with cash on balance sheet of USD 273 million and available undrawn RBL capacity of USD 200 million. Despite the planned maintenance shut-in of the NOGAT pipeline, cash flow generation from the producing assets continues to be the strongest since closing the acquisition of Shell's Danish upstream assets in 2019, providing Noreco with additional flexibility.

"Noreco has delivered another quarter of excellent performance.  Operationally, the HCA restimulation campaign was exceptionally impactful and, combined with high uptime and the well-managed NOGAT shutdown, it allowed us to deliver record quarterly revenue, EBITDA and free cashflow generation; an outcome that was delivered despite almost a month of planned gas export capacity downtime.  On Tyra, completing the offshore installation campaign was an important de-risking step and doing so ahead of schedule is a positive backdrop as we look forward to first gas at the end of 2023.  Our focus continues be on maximising gas output in the short, medium and long-term, an objective that is supported by our strong operational base," said Euan Shirlaw, Chief Executive Officer of Noreco.

The report and investor presentation may be downloaded from the Company's website www.noreco.com or www.newsweb.no.

The Company will host a webcast today at 11:00 CEST.

To join webcast:

https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20221026_15

Contact:

Cathrine F. Torgersen, EVP Investor Relations & ESG
Phone: +47 915 28 501
Email: ct@noreco.com
 

This information is considered to be inside information pursuant to the EU Market Abuse Regulation, and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. The stock exchange announcement was published by Cathrine Torgersen, Executive Vice President Investor Relations & ESG, Norwegian Energy Company ASA, at the date and time as set out above.

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The following files are available for download: