Noreco Announces Fourth Quarter 2021 Results

OSLO, Norway, Feb. 16, 2022 /PRNewswire/ -- Norwegian Energy Company ASA ("Noreco" or the "Company") today announced its fourth quarter 2021 results. The quarter delivered both strong production of 27.5 mboepd and a [strong] financial result with revenues of USD 175 million and EBITDA of USD 97 million.

Highlights:

• Hydrocarbon production of 27.5 mboepd, at the top of our annual guidance for 2021
• Total Revenues of USD 175 million, which compares to USD 150 million in the previous quarter
• EBITDA of USD 97 million, which compares to USD 65 million in the previous quarter
• A refocused and fit-for purpose management team

Net hydrocarbon production for the quarter of 27.5 mboepd is at the top end of our annual guidance range of 25.5 - 27.5 mboepd and average production over the full year was 26.9 mboepd. The Noble Sam Turner drilling program delivered a positive impact on operating performance throughout the year, including in Q4 2021, and will continue to undertake additional well interventions in 2022. The Tyra Redevelopment project made significant progress in the fabrication yards during fourth quarter, which resulted in a successful sail away, in-line with plan, of the Tyra West topsides in early January.

In December, the Company announced a successful award of funding under the 'Energy Technology Development and Demonstration Programme' (EUDP) of DKK 75 million for Project Bifrost which is a Danish Underground Consortium ("the DUC") partnership with Ørsted and DTU. The project will focus on progressing the potential for CO2 transport and storage at the Harald field with expected startup storage capacity of 3 million tons of CO2 per year (m/tpa).

The financial result for fourth quarter shows a strong development over the previous quarter, with revenues of USD 175 million compared to USD 150 million in Q3, and EBITDA of USD 97 million compared to USD 65 million in Q3. The Company had total liquidity of USD 223 million at the end of fourth quarter, with cash on balance sheet of USD 123 million and available undrawn RBL capacity of USD 100 million. 

Strategic changes were made to the Noreco's organisational leadership, resulting in a refocused and fit-for-purpose management team who will drive performance and deliver on the Company's short- and long-term objectives. As previously announced, Euan Shirlaw was appointed Acting Managing Director in addition to his role as Chief Financial Officer and, further, Cathrine Torgersen was appointed EVP Investor Relations & ESG. 

The leadership team was also strengthened with the addition of Marianne Eide, who joined Noreco in January 2022 as EVP Upstream and will lead the Company's operations function going forward. Marianne brings 30 years of North Sea experience in the oil and gas industry. In her last position, from 2016 to 2021, she was a member of the Shell UK Upstream Leadership team accountable for subsurface, field development, and technology deployment contributing to a significant increase in the level of operated activity with field developments like Penguins and further development of the Shearwater hub. Prior to joining Shell she held the position as Managing Director for BG Group in Norway in parallel with managing BG Group's non-operated portfolio in the UK (Buzzard, J-block and Elgin Franklin). She was also managing BG Groups's Norwegian Knarr FPSO development through project execution and start-up. In addition, Marianne held positions in Commercial, Business Development and Petroleum Engineering in Gaz de France, Conoco and Equinor.

"I'm delighted to be part of the Noreco team. I am looking forward to working with our partners TotaEnergies and Nordsøfonden to bring Tyra on stream next year. This is an exciting time to be joining Noreco with the transformation we are going through with the Tyra Redevelopment, shifting from late-life oil to state-of-the-art gas facilities with lower operating costs and emissions. I am also looking forward to exploring the field development opportunities beyond Tyra", said Marianne Eide, EVP Upstream in Noreco

Euan Shirlaw, Noreco's Acting Managing Director and CFO said "The final quarter of 2021 saw us demonstrate the significant potential of our business with positive operational delivery translating into our strongest quarter of financial performance since we closed the acquisition of Shell's Danish upstream interests in 2019.  That potential will only continue to grow as we move through the next 18 months, a period which will culminate with first gas from Tyra". 

"We are very pleased to have Marianne onboard, and the significant non-operated and projects experience she brings sits well with the focus of our business.  I would like to thank John Hulme for his contribution during his time as Chief Operating Officer and he leaves with our best wishes for the future.  I am confident that our assets are in safe hands with Marianne and look forward to having her as part of our Executive Team as we move through the next few exciting months"

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

The Company will host an earnings call today at 11:00 CET.

To join audiocast: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220216_10

Contact:
Cathrine Torgersen, EVP Investor Relations & ESG
Phone: +47 91 52 85 01
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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