Noreco announces third quarter 2019 results

Oslo, 28 November 2019: Norwegian Energy Company ASA (“Noreco”) today announced its result for the third quarter of 2019.

The third quarter result is characterized by strong operational- and financial performance and field developments according to plan. The acquisition of Shell Olie- og Gasudvinding Danmark B.V. (“SOGU”) was completed, and Noreco became a partner in the Danish Underground Consortium (“DUC”). Post closing of the acquisition, the Company reported net hydrocarbon production of 41,6 mboepd in the quarter, and cash flow from operations of USD 115 million.

Highlights:

• Net production of 41,6 thousand barrels of oil equivalents per day ("mboepd") post transaction close
• Cash flow from operating activities of USD 115 million
• Net result for the period after tax of USD 179 million

The financial figures of third quarter reflect a strong contribution from the two months’ ownership in DUC with net result from the period after tax of USD 179 million. Cash flow from operating activities was USD 115 million and EBITDA was USD 68 million (adjusted EBITDA 122 million).

The operational performance of the company proved to be solid in the third quarter, which was Noreco’s first quarter as a partner in DUC, with a successful completion of the HBB-05 production well – first DUC well with Fishbone technology. The third quarter also included ramp-down of production and shutdown of Tyra and satellites as expected. The project is progressing as planned, within budget and on schedule to be on stream mid 2022.

“On behalf of the Board of Directors, I am proud to present you with the first quarterly figures reflecting the acquisition of Shell Olie- og Gasudvinding Danmark B.V. The Company demonstrates strong operational and financial performance during its two months as a partner in the Danish Underground Consortium, important initial steps to create, accelerate and unlock long term values for all of Noreco’s stakeholders,” said Riulf Rustad, Executive Chairman of Noreco

The reports may be downloaded from the company's web site www.noreco.com or www.newsweb.no.

Executive Chairman Riulf Rustad, CFO Euan Shirlaw and COO Atle Sonesen will present Noreco’s quarterly results today 08:00 CET at Hotel Continental, followed by an earnings call at 15:00 CET

To join webcast:

https://webtv.hegnar.no/presentation.php?webcastId=98225950

A recorded version of the webcast will be made available at www.noreco.com

To join earnings call:
Confirmation Code: 3058318

Norway:    +47 23 50 02 96
United Kingdom:    +44 (0)330 336 9411
United States:    +1 929-477-0402
Denmark:    +45 35 15 81 21

***

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 (ticker NOR). For further information, please visit: www.noreco.com.