Result marked by significant impairments
Stavanger, 28 November 2014: Whereas production in the third quarter of 2014 was basically unchanged from the previous quarter, significant impairments took down Norwegian Energy Company’s (Noreco) net results after tax to minus NOK 1 101 million.
Revenues in the third quarter 2014 were NOK 296 million, down from NOK 318 million in the previous quarter. Exploration and evaluation expenses amounted to NOK 629 million, primarily due to a write-off of the Huntington Fulmar (Maxwell) discovery in the UK, and the operating result before depreciation and write-downs (EBITDA) was negative by NOK 556 million, compared with negative NOK 29 million in the previous quarter.
As previously reported, the negative developments in the performance of several of Noreco’s producing fields forced the company to initiate a full review of available alternatives, and what would be required to secure a sustainable financing solution.
“Our main priority in the short term is to secure a sustainable financial solution”, said Tommy Sundt, CEO of Noreco.
“The work with mapping possible solutions to the company’s financial challenges is continuing at full speed. The dialogue with creditors about deferral of payments and waivers related to loan agreements is constructive and good, and we expect that a bondholder meeting will be called shortly to resolve these matters,” he continued.
For further information about status and outlook for the company, please see the attached interim report for the third quarter.
Company management will be available in a telephone conference Monday 1 December at 10:00 CET to comment on the quarterly report and answer questions. Please use tel. 800 88 860 from Norway or +47 23 18 45 00 from abroad, and conference code 826932# to participate, and please call a few minutes prior to the start of the meeting to ease the registration of participants.
This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act
About Norwegian Energy Company ASA
Noreco is an independent Norwegian oil company. The company's focus is to explore, develop and produce oil and gas in the North Sea region. Since incorporation in 2005, the company has grown through licensing rounds, exploration and acquisitions. Noreco operates in Norway, Denmark and United Kingdom, and employs 53 oil and gas professionals. Noreco is listed on the Oslo Børs (ticker NOR). For further information, please visit: www.noreco.com.