Noreco reports fourth quarter 2013 results
Stavanger, 20 February 2014: Norwegian Energy Company ASA (Noreco) today presents its fourth quarter 2013 report, with a positive EBITDA of NOK 56 million and a positive net result of NOK 339 million.
The positive operating result is among other things due to low exploration costs in the fourth quarter 2013. A non-recurring item of NOK 523 million related to the restructuring of the company’s bond debt is a significant contributor to the positive net result for the quarter.
“New equity and restructuring of all debt has given the company a significantly improved financial foundation for further value creation,” says Svein Arild Killingland, CEO of Noreco. The company can now focus on the core business of an exploration driven oil and gas company.
“Production has increased. On some days in February our share has been well above 10 000 boe per day, but we are still experiencing periods of operational challenges. Production levels and cash flow from these fields are keys to further success,” says Killingland.
Noreco is now planning the drilling of two wells. The Noreco-operated Verdande well is expected to start in the first quarter. The appraisal well at the Lundin-operated and promising Gohta-discovery is planned to start in the second quarter.
As previously reported, in the fourth quarter 2013 Noreco received a requirement from the partners in the Nini and Cecilie licenses to provide full security for the abandonment liabilities for the field installations. Noreco has in February 2014 negotiated an agreement which implies payment of DKK 445 million into an escrow account. The amount is somewhat lower than anticipated. The surplus amount will be offered to bond holders in the secured bonds according to the loan agreements.
For further information and details on Noreco’s quarterly accounts, please see the attached report for the fourth quarter 2013. The report and presentation are also available at www.newsweb.no and www.noreco.com.
Noreco will present the results for fourth quarter 2013 today at 08.30 Norwegian time. The presentation will take place at Felix Kurs og Konferansesenter, Bryggetorget 3, Oslo. The presentation can also be followed by webcast on Noreco’s web page www.noreco.com.
Contact:
Ørjan Gjerde, CFO (0047 900 35 738)
This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act
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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 license rounds, successful exploration and acquisitions. Noreco operates in Norway, Denmark and United Kingdom, and employs around 70 oil and gas professionals. Noreco is listed on the Oslo Børs (ticker NOR).
For further information, please visit: www.noreco.com