Noreco Announces Fourth Quarter 2020 Results
Oslo, 18 February 2021: Norwegian Energy Company ASA ("Noreco" or the "Company") today announced its fourth quarter 2020 results. The fourth quarter financial results delivered revenues of USD 146 million, a positive net result of USD 16 million and an operating cash flow of USD 96 million during the period.
Highlights:
• Total Revenues of USD 146 million
• Adjusted EBITDA of USD 73 million and Net Result of USD 16 million
• Cash flow from operating activities of USD 96 million
• Realised oil price for the period of 63.6 USD/boe
Net hydrocarbon production in the quarter was 25.5 mboepd, with full year production of 28.5 mboepd. Offshore manning levels successfully returned to pre-COVID levels by the end of October, and the operator of DUC has continued to mitigate the impact of the pandemic and safeguard business continuity. The Tyra Redevelopment schedule was updated with first production expected by Q2 2023.
The financial results for the fourth quarter continue to demonstrate the value of Noreco's hedging arrangements. Price protection led to a realised liquids price of USD 63.6 per barrel and supported revenues of USD 146 million, compared to average dated Brent price during the same period of USD 46 per barrel. Including the contribution from the volume protection arrangements with Shell, the Company generated USD 73 million of adjusted EBITDA during the quarter and operational cash flow of USD 96 million.
"2020 was an unprecedented challenge to society as a whole, and our industry was no exception. Noreco’s results, however, remained robust through each of last year’s four COVID-impacted quarters with strong outcomes both operationally and financially. Our risk mitigation mechanisms provided stability and predictability. As a direct consequence of the global pandemic’s impact on yards and suppliers, Noreco updated the Tyra Redevelopment first gas schedule to Q2 2023. Successfully executing the Tyra milestones continues to be a priority, as it will create significant value both by emissions reduction and by the nearly 70% increase in production. After the end of the fourth quarter, we also announced an underwritten RBL increase and extension that will materially enhance our financial strength through the Tyra redevelopment and beyond," 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 fourth quarter results in an earnings call today at 12:00 CET.
To join audiocast: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20210218_6
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Contacts:
Euan Shirlaw, Chief Financial Officer
Phone: +44 7979 690622
Email: es@noreco.com
Cathrine Torgersen, EVP Investor Relations & Communications
Phone: +47 91 52 85 01
Email: ct@noreco.com
About Norwegian Energy Company ASA
Noreco is a publicly owned company with focus on the oil, gas and offshore industry. The Company's shares are listed on the Oslo Stock Exchange with ticker: "NOR". For further information, please visit: www.noreco.com.